Our answer, to the dismay of technicians and fundamentalists alike, is Both.
Fundamentals do matter, and we should not ignore them.
At the same time, technicals pick up "all information" in the market including unreleased insider buying, and price movements that individuals in the market do not understand.
This is why stocks collapse when the current fundamentals look the best, and often turn up when the current fundamentals look their worst.
Our advice is simple. Use fundamentals to generate your ideas, but go long or short once the trend is in your favor. The probabilities of a successful trade are far better.
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