Technical Analysis - role of Fundamentals
Currently I am giving focus to technical analysis on a day by day basis but how much weight should I give to changing fundamentals?
An example is the events of September 18th with UK government temporary ban of short-trading, US government's decision to intervene to shore up 'toxic' investments and the removal of tax for Chinese stocks - which caused an upswing reversal in financial stocks. This is something not difficult to anticipate and would have justified a buying of a financial stock such as UK bank subject to usual technical analysis. This is about being agile.
My focus then is to continue with the TA but be responsive to significant changes in fundamentals.
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