UnitedHealth Group's share may not be as ill as it seems, according to an investor.
"We own both stocks and I think they both had good quarters," said Binger on Tuesday at CNBC's "Trading Nation", and calls Johnson & Johnson a "high quality company" with consistent performance and good returns.
But "the file I think we should focus on today is UnitedHealth," I said. "They beat earnings, they increased 201
Binger may have referred to what some – including UnitedHealth's CEO – see as a threatening threat to the nation's health care: A number of "Medicare for All" proposals are being promoted by some Democrats.
"Now one thing I know is that politicians … have consistently for years attacked health care costs and health care," says Binger. "And I also know that nothing is being done and it continues to go. So today I would take advantage of this. I wanted to buy UnitedHealthcare. You have a very inexpensive company that increases your turnover [by] high-end numbers and earnings that grow in the mid-teens. So I wanted to own it today. "
Blue Line Futures President Bill Baruch was not so convinced.
" I can't be a UNH buyer after this bad day and even worse week, and here's why. The average true range, which is a measure of volatility, increases as we see new downs and lower downs, he said in the same "Trading Nation" interview.
"Finally, the 50-day moving average went below the 200-day moving average in February. This is the death cross, Baruch continued." I'll get out of the way for this now. " He does as Johnson & Johnson shares, but notes that it has managed to keep track of its 2016 trend line.
"There is solid momentum, with 50-day moving averages crossing over 200 in February," he said. "So finally … If we close stronger here and make new heights, I think this is going to bring a tail wind and you're going to see some speed higher."
Shares in UnitedHealth made a new 52 week Low on Tuesday, end of day down about 4% UnitedHealth was up almost 1 percent in Wednesday's premarket, Johnson & Johnson stock closed about 1% higher
Information: Gradient Investments owns shares in UnitedHealth and Johnson & Johnson in their portfolios.