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Two Growth Stocks to Buy on Their 50-Day Moving Averages

NEW YORK (TheStreet) -- Everyone seems to be freaking out about this "correction." Although the S&P 500 is down about 7% from its highs, it still has a double-digit return since the start of the year.

Also, when you compare U.S. equity markets to other asset classes such as fixed income and emerging-markets, the selloff has been extremely orderly.

China was down more than 5% the other day. The 10-year Treasury note has plummeted in the last month. Can you imagine the pandemonium if the Dow Jones or S&P 500 was off by 5% in a single session?

Emerging markets have also seen down days of 2%-3% or more over the past month.

Let's face it, our selloff was both anticipated and calm compared to other investment areas. In fact, with a little protection, you could have profited on the downside, while staying long equities over the past couple of weeks.

However, whether long, short, or flat through this selloff, there's one place where investors can park their money and not worry about getting their face ripped off in the event that there is further selling headed our way for the rest of summer.

I'm talking about credit card giants Visa (V) and Mastercard (MA).

Both stocks have performed incredibly well this year, with Visa up 17.6% and Mastercard up 14.5%. The following table shows just how strong its performance has been compared with the exchange-traded fund that tracks the S&P 500, the SPDR S&P 500 ETF:

Wow, talk about monster returns. Although the broader market has performed exceptionally well considering all of the drama that we've experience in the previous three years, Visa and Mastercard have crushed those returns.

Of the two, Visa underperformed over the three-year time frame, yet still tripled the returns of the SPY. Why stop now?

Although only down fractionally over the previous four weeks, both names actually tested -- and momentarily broke through -- their 50-day simple moving average. While the moving average is a lagging indicator, it does help identify the trend and can act as support.

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