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.