Momentum is not
purely momentum and not solely depending on news otherwise you would get
burned. In my books, I explain derivative logic. For example, China
allowed the US to import the beef (the news). It would be a bonanza to
cattle raisers, but also a boom to fertilizer companies (the
derivative). It takes a lot of corn to feed a cow and corn depends on
fertilizer.
The wealthier Chinese (relatively) require 'better'
quality of food and beef is VERY expensive in China. That's why most
Asian tourists are winners eating beef here.
This is the
fundamental part, but sometimes it does not materialize as predicted.
So, technical plays a part. Technical tells us when to act.
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