Are fundamentals and technicals out the window today with regards to investing?

Question

It looks to me that the news drives most of the buying and selling.

Answer 1

The question is whether fundamentals and technicals EVER really meant anything.

You can say that when the MACD crosses over and the stochastics are above such and such it's a buy signal, and you can point to a lot of historical data to show that this is so, but when you subject these "signals" to blind regression testing, they just don't hold up, and never did.

The biggest problem is sorting out the noise caused in the prices by the day traders and swing traders like you and me, from the underlying trends caused by institutional investing. GMMA is the best technical indicator to do this. Use this to spot a trend, get on the trend, and ride it until the trend quits.

Answer 2

The market is up because of the Feds reducing interest rates. That's a fundamental factor for the economy. And the movement of the stocks is by definition technical; that is, the movements can be interpreted using technical analysis. So what makes you think that fundamentals and technicals are out the window?

Answer 3

Today stocks fell on the news of oil price increases. Today stocks fell despite the news of oil price decreases. And, I surely don't trust fundamentals, since their origin is always the company itself. There is no other independent source. So, the technicals are what is left. The price tells all and anything you derive from price and time is unaffected by board room tomfoolery. Right now, things are a little crazy and will be for a short while while equilibrium is found and things settle down. Then normalcy will return and the usual market measures will be as valid as always.

Answer 4

I think fundamentals are the best option for the long term.

Answer 5

i per fer fundamentals myself. read the following books and you see why.

1) the intelligent investor
2) security analysis