3 Biden-Backed Election Stocks to Buy Today

election stocks - 3 Biden-Backed Election Stocks to Buy Today

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“Make America Great Again?” If you’re a Biden fan or even if you’re not, the U.S. could be getting ever closer to that reality. And while a chorus of warnings for stocks comes with a new Commander in Chief, these three Democrat-backed, election stocks to buy stand to prosper and are ready for your portfolio today.

Thursday evening marks the final Presidential debate in what’s been an unusual campaign trail to say the least. Following a kindergarten-like round 1 last month, the decision to mute the microphones to minimize verbal jabs and right hooks has already been voted in as a rule. Not exactly presidential, but “it is what it is” and par for what’s been an interesting four years.

Kidding aside, I’m not here to influence your vote. Still, the fact remains Joe Biden continues to maintain his lead against our country’s incumbent based on all recognized and accepted polling standards. And barring a disaster, a new administration looks more likely than not. Of course, we may have to wait a couple extra months if the Clown in Chief doesn’t get his way.

So, will all of that in mind, here are three Biden-backed election stocks to buy:

  • Tesla (NASDAQ:TSLA)
  • Canopy Growth (NYSE:CGC)
  • NextEra Energy (NYSE:NEE)

With odds favoring a Biden White House (eventually), there goes the stock market, right? Wrong. It could of course, but historically Wall Street has outperformed under Democratic leadership. To be fair, stocks already in the sights of regulators such as Alphabet (NASDSQ:GOOG,NASDAQ:GOOGL) or Facebook (NASDAQ:FB) are likely to be challenged in their existing form. But many others should thrive without controversy. And on the price charts these three election stocks are pricing in victory for their shareholders today.

Election Stocks to Buy: Tesla (TSLA)

Tesla (TSLA) weekly chart bullish triangle breakout
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Source: Charts by TradingView

The first of our election stocks to buy right now is Tesla. Okay, so maybe the electric vehicle (EV) giant is controversial. Its valuation is a staggering $400 billion give or take some pocket change. That dwarfs the combined market capitalization of Ford (NYSE:F), General Motors (NYSE:GM), Honda (NYSE:HMC) and Toyota (NYSE:TM) with plenty of room to spare. But the way I see it, there’s more to come for TSLA stock investors.

Bottom line, TSLA shares have performed like a rocket ship under a less-than-green friendly White House under President Donald Trump. And with an administration which actually wants to reestablish America’s commitment to alternative energy, Tesla should find the type of market support in the years ahead — which can provide its shareholders with continued above-average returns.

Technically, this election stock to buy recently broke above triangular resistance on the weekly chart. Most commonly associated with being a continuation pattern, it’s a sign the bulls are poised to attack once again. But combined with the current bullishly-positioned, oversold stochastics and pullback to test the triangle’s apex for support, TSLA stock is ready to go long right now.

My advice for long exposure is to buy the TSLA stock January $475 / $500 bull call spread to dampen the risk associated with this high-octane stock, while maintaining the possibility for leveraged profits that could pile up rapidly in the weeks ahead.

Canopy Growth (CGC)

Canopy Growth (CGC) bullish monthly Gartley pattern to buy
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Source: Charts by TradingView

The next of our election stocks to buy are shares of Canopy Growth. It’s no secret the cannabis industry stands to benefit from pot smoking hippies in the White House. But the space should grow with less regulatory red tape under a Biden administration.

And if both the Senate and House are under Democratic control, I think Mel Brooks said it best. For CGC stock it’ll be a case of “everything’s so green.”

Technically, shares of CGC stocks are attempting to make good on a very promising bullish Fibonacci-based Gartley pattern — which formed over three years and officially completed in May. And something that is helping rally pot stocks across the board is word VP in-the-wings Kamala Harris’ plans to decriminalize pot.

For long delta exposure and given the massive size of this election stock’s bottoming formation, I’m suggesting investors purchase the long-term January 2022 $25 / $40 bull call spread.

Election Stocks to Buy: NextEra Energy (NEE)

Nextera Energy (NEE) monthly breakout from choppy high handle pattern
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Source: Charts by TradingView

The last of our stocks to buy is NextEra Energy. Unless you’ve been living in a cave, you’ve heard of plans for a Green New Deal from inside an environmentally aware Democratic party — or the fringe left wing as some fear mongers’ warn. Regardless of how much of those plans actually come to bear fruit, NEE stock will undoubtedly be a name which benefits.

NextEra has made a name for itself as a utility committed to raising the bar on electricity generation through renewable sources solar and wind. Recently and for the first time ever, the market capitalization of NEE surpassed the valuations of the U.S. energy market’s top oil and gas producers Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM). Yeah, NEE stock isn’t going anywhere except up based on its price chart.

Technically, March’s novel coronavirus market correction made a disaster of NEE stock’s very sturdy-looking uptrend of the past few years. But shares bounced back and continue to demonstrate leadership. After a couple months of toiling with a breakout from its corrective base, October has reaffirmed the prospect of more upside as shares traded above a choppy “high handle” consolidation.

So, with this election stock’s monthly stochastics trending nicely in neutral territory and backing the price action, I’m favoring the June $320 / $350 call spread as a strategically-positioned way for intermediate-term bulls to play one a utility stock that’s not like your Granddaddy’s and can move with the best of them.

On the date of publication, Chris Tyler does not hold, directly or indirectly, positions in any securities mentioned in this article.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100%  the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

Article printed from InvestorPlace Media, https://investorplace.com/2020/10/3-biden-backed-election-stocks-to-buy-today/.

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