The analyst suggests buying fundamentally strong companies that are trading well below their 200-week moving average, highlighting NVO and CRM as examples.
Fundamentally strong companies tend to revert back to their 200-week moving average; identifying those trading deep below this level presents buying opportunities.
$UNH show this chart to a dog and they'll tell you where this price action is moving back to FUNDAMENTALLY STRONG COMPANIES ALWAYS REVERT BACK TO THEIR 200 WMA. Now Figure out which fundamentally strong companies are deep below their 200 WMA and you have your next buys Better yet Let us do it for you. Here's two: $NVO $CRM
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | +0.9% | +1.6% |
| 1 week | +5.9% | +4.4% |
| 1 month | +4.3% | +3.6% |
| 3 months | — | — |
| 6 months | — | — |