Should one use fundamentals or technicals to trade?
We select our stocks based equally on fundamentals and on technical analysis, which we believe is the best way to analyze stock picks when going after short-term gains. Fundamentals become more important as the investment time frame increases to a period of weeks or months. In the short-term, it’s technicals that rule the most. Most market players have realized that even the prices of the most fundamentally sound companies can go down for several days, and conversely, even companies with poor fundamentals can have periods during which their prices increase.