Blue Lines, Red Lines, Green Gains: 10 Stocks I'm Watching (and why)

At GKT, we don’t get tangled in the political noise. We’re about making money, building freedom, and creating a better life for you, through smart trading.

I'm not deaf or blind to the wild vibes out there right now, Trump's tariffs are shaking things up, it feels like the ground is shifting... Tariffs or no tariffs, opportunities are out there, and I’m here to help you spot ‘em.

Today, we’re diving into one of my favorite strategies: buying quality stocks off the red and blue lines—those 100-week and 200-week moving averages that scream “value” when stocks pull back. Let’s talk simple, profitable trades and look at 10 stocks sitting pretty on these lines.

Why the Red and Blue Lines Matter

I love simple strategies—not just because they’re easy to execute, but because it's profitable over time.

The red and blue lines on my charts are the 100-week and 200-week simple moving averages (SMAs). On a weekly chart, the blue line (100-week SMA) shows the average stock price over roughly two years, while the red line (200-week SMA) covers about four years. When a stock dips to these lines, it’s trading near its long-term average—a sweet spot for buying quality companies at a discount.

If you want your tradingview moving averages to look like mine you can download this free guide to make your charts look like $Maxwell's. I constantly hear how my lines don't match everyone else's. So I made this guide just for you :)

Take Apple (AAPL) as an example. Over the past seven years, I’ve bought Apple every time it touched the blue line.

I’ve circled each buy point, and right now, Apple’s on the blue line and it flirted with the red line (the weekly 200)! This isn’t guesswork—it’s a disciplined strategy that’s worked for me, and it can work for you too.

The Strategy: Buying Quality Off the Lines

When a stock hits the weekly 100 or 200 SMA, it’s often a sign to other long-term investors too. Nothing I'm telling you is a secret, They see value too. My approach is to buy high-quality companies at low levels: Think strong earnings, solid balance sheets, and competitive edges when they touch these lines. It’s not about catching the exact bottom; it’s about getting in at a price that’s historically attractive.

I hear you: “these tariffs make everything feel different!” You’re not wrong. The market’s jittery, and that’s real. But I’ve seen pullbacks before—every 3.5 to 5 years, we get a 20% drop on average—and every time, the Good Kids who act smartly come out ahead.

If you’re nervous, scale down your position sizes. Instead of dropping $500 on a stock, try $200 or $250. Dip your toes, don’t dive in headfirst. But don’t sit on the sidelines either: regret stings worse than a missed trade.

10 Stocks I'm watching:

This week, I’ve got 10 stocks I’m eyeing that are sitting on or near their 100-week or 200-week SMAs. These are quality names with fundamentals that can weather tariff turbulence and technical setups where I see opportunity. Please wait for earnings before jumping into these. I've also included some bonus names at the end that need a pullback before adding.

Reminder: I’m not a financial advisor; this information is for educational purposes only, and you should make your own investment decisions.

1. Bank of America (BAC) 

   
   

   

   Remember thin purple lines are my weekly support, my pyramid has 3 levels, you can add more.

   
   

   • Reason: BAC’s diversified banking operations and strong loan growth make it a stable long-term bet on the U.S. economy.

   • Fundamentals (4/5): Trailing P/E 14.5, forward P/E 12.8, debt/equity 0.35, EPS growth 15%, ROE 12%, market cap $370B, 2.3% dividend.

   • Low Tariff Risk: U.S.-focused, minimal trade exposure.

   • Good Growth Potential: Benefits from economic expansion.

     
     

2. Johnson & Johnson (JNJ)

   
   

   

   This is a range bound stock, buy low sell high? My three levels

   
   

   • Reason: JNJ’s consistent drug and device innovation ensures steady profits in the tariff-proof healthcare sector.

   • Fundamentals (5/5):Trailing P/E 15.2, forward P/E 13.5, debt/equity 0.40, EPS growth 16%, ROE 20%, market cap $380B, 3% dividend.

   • Low Tariff Risk Healthcare is immune to trade wars.

   • Lower Growth Potential: Defensive name, some growth opportunity.

     
     

3. Procter & Gamble (PG)

   
   

   

   Remember thin purple lines are my weekly support, my pyramid has 3 levels, you can add more.

   
   

   • Reason: PG’s iconic brands and reliable dividends deliver dependable returns through any economic storm.

   • Fundamentals (5/5): Trailing P/E 24.5, forward P/E 14.8, debt/equity 0.60, EPS growth 15%, ROE 30%, market cap $400B, 2.3% dividend.

   • Slight Tariff Risk: Global supply chain but U.S.-centric sales.

   • Growth Potential: Stable growth

     
     

4. UnitedHealth Group (UNH)

   
   

   

   Massive pullback on the earnings miss, they took off all guidance for 2025 and the stock shows it

   
   

   • Reason: UNH’s dominance in health insurance drives robust earnings, insulated from global trade disruptions.

   • Fundamentals (4/5): Trailing P/E 20, forward P/E 14.0, debt/equity 0.70, EPS growth 15%, ROE 25%, market cap $500B.

   • No Tariff Risk: Healthcare faces no tariff impact.

   • Unknown Growth Potential : Recent guidance cut makes growth unknown

     
     

5. Alphabet (GOOGL)

   
   

   

   Alphabet is more than just google search, look to buy more on pullbacks

   
   

   • Reason: Alphabet’s has search and advertising dominance, plus AI advancements, secures its tech titan status.

   • Fundamentals (4/5): Trailing P/E 30, forward P/E 15, debt/equity 0.10, EPS growth 25%, ROE 30%, market cap $2T.

   • Medium Tariff Risk : Global ad revenue and hardware imports face trade risks.

   • Growth Potential:  AI and cloud growth

     
     

6. Microsoft (MSFT)

   
   

   

   I'd love a pullback in this tech leader.

   
   

   • Reason: Microsoft’s leadership in cloud and AI positions it as a tech juggernaut for decades to come.

   • Fundamentals (5/5): Trailing P/E 25, forward P/E 14.8, debt/equity 0.30, EPS growth 22%, ROE 40%, market cap $3.2T.

   • Some Tariff Risk: Global supply chain and cloud exposure.

   • Good Growth Potential: AI-driven growth, 20-25% upside.

     
     

7. Pentair (PNR)

   
   

   

   An infrastructure play to mix up our portfolio diversification

   
   

   • Reason: Pentair’s water solutions tap into growing U.S. infrastructure demand, offering steady industrial growth.

   • Fundamentals (4/5): Trailing P/E 22, forward P/E 14.5, debt/equity 0.50, EPS growth 18%, ROE 20%, market cap $16B, 1.8% dividend

   • Low Tariff Risk : Global manufacturing but U.S.-focused business.

   • Growth Potential: Infrastructure tailwinds

     
     

8. On Holding (ONON)

   
   

   

   A bit of a wild card with this shoe company. Some tariff risk of course, so speculation

   
   

   • Reason: On’s rapid growth in premium athletic footwear captures younger consumers, rivaling established brands.

   • Fundamentals (3/5): Trailing P/E 60, forward P/E 25, debt/equity 0.20, EPS growth 30%, ROE 15%, market cap $15B

   • Higher Tariff Risk : Imports footwear, exposed to tariff costs.

   • Growth Potential: Brand momentum, but consumer discretionary be careful

     
     

9. Amazon (AMZN)

   
   

   

   Could have some pressure from passing on price increases to customers, but AWS is strong

   
   

   • Reason: Amazon’s dominance in e-commerce and cloud computing ensures relentless growth in a digital world.

   • Fundamentals (4/5): Trailing P/E 40, forward P/E 20, debt/equity 0.40, EPS growth 30%, ROE 20%, market cap $2.1T

   • Higher Tariff Risk: Imports goods, cloud less affected

   • Growth Potential: AWS and e-commerce drive 20-25% upside.

     
     

10. Apple (AAPL)

    
    

    

    I mean... Apple has been a buy off the blue line 7 times.. But the tariffs could have an impact. Buy low!

    
    

    • Reason: Apple’s unmatched brand loyalty and growing services revenue fuel long-term growth, despite trade risks.

    • Fundamentals (5/5): Trailing P/E 23, forward P/E 14.5, debt/equity 0.50, EPS growth 18%, ROE 150%, market cap $3.5T

    • High Tariff Risk: Heavy China exposure raises import costs

    • Growth Potential: AI and services drive 20-25% upside.

Here are some bonus stocks I like, but they are a bit extended from the moving averages... So keep an eye on these:

1. JPMorgan Chase (JPM): JPM’s unmatched banking scale and resilient earnings make it a cornerstone for any long-term portfolio.

2. Walmart (WMT): Walmart’s retail dominance and growing e-commerce muscle ensure steady gains in any economy.

3. American Electric Power (AEP): AEP’s stable utilities and hefty dividend offer a safe haven, no matter the market’s mood.

4. Visa (V): Visa’s global payment network thrives on rising consumer spending, fueling consistent growth.

5. Newmont Corporation (NEM): NEM’s gold leadership shines as a hedge against inflation and market uncertainty.

6. CrowdStrike (CRWD): CrowdStrike’s cutting-edge cybersecurity solutions ride the unstoppable wave of digital protection demand.

   
   

The market’s throwing tariff curveballs, but we’re here to play smart, not scared—sticking to quality stocks on the red and blue lines builds wealth, not stress. These 10 picks, plus the bonus watchlist, are your roadmap to freedom, whether you’re dipping in with $200 or going bigger. Stay disciplined, size your positions wisely, and let’s keep the GKT community buzzing with ideas—drop your favorite stock in the chat and let’s make that money grow!

Happy Trading Good Kids!

-$Maxwell