You’ve probably noticed by this point, but I tend to let the technicals lead my thinking when it comes to the stock market.
That doesn’t mean I ignore the fundamental picture.
I just believe that “markets move first and reasons follow later.”
Here’s an example:
Stocks bottom (on average) nine months before earnings in bear markets.
I’m not saying fundamentals are unimportant.
They’re very important.
My point is that the market will anticipate the improvement of companies well ahead of their quarterly numbers hitting the wire.