Do fundamental and technical analysis mix?

Of my fifteen years of trading the first ten years were spent on reading fundamentals. I don’t regret this one bit. Fundamentals are what drive the price of a stock over the longer period; and I do mean longer period. Fundamentals to me are great if we’re talking more than 20 years, and I prefer 30 years plus.

However, for clarity over the near term (presumably from my thought above, near term is anything less than 20 years) technical traders hold the key. That is a bold statement as every magazine or commercial pundit tells us its fundamentals all the way.

Can we combine both technical and fundamental? Yes, of course, and some traders report to be doing this successfully. To some degree, I do this with the Slow Trader Fund when I trade from daily charts. In this case I will take commodity trades when the COT report is in agreement with the trade. However, the fundamentals of a stock do not mix well with technical analysis over the shorter period. One simply confuses the other, and that is never a good basis for a successful trade.


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