Jun. 25 at 6:45 PM
Sometimes the chart is a lot simpler than people want it to be.
$UNH has spent months trading well below its long-term trend, but historically, fundamentally strong companies have a tendency to gravitate back toward their 200-week moving average once panic and positioning wash out.
That’s why I spend more time looking for quality names trading far below long-term trend support than chasing whatever is hot this week.
A couple that stand out to me:
$NVO $CRM
Both have seen meaningful drawdowns despite maintaining businesses that continue to generate substantial cash flow and market leadership.
The biggest returns often come from buying strong companies when sentiment is broken - not when headlines are bullish.
