I totally agree with this line of thinking. While I am new to daytrading, I have always believed that news is what drives the numbers.
On the subject of news, is there any good trading software that helps you keep track of news? I'm imagining sw that automatically brings up the tickers into your market list on the morning prior to earnings releases, analyst meetings, etc. It timeframe could be customizable to happen N+/- days before said news?
On a side note, I tend to trade companies based on whether I think they are fundamentally sound. Are they selling a lot of products? Is there a buzz around its product?
Thats why I started daytrading AAPL. I firmly believe they will get to 100 this year. The iPod is one of amazon's top sellers, apple has a good buzz right now. 10.3 is sound and 10.4 will be out soon, the technology works.
GOOG technology obviously works too...and they've got quite a buzz. But I go back and forth whether they can hold their own in the big 5-7 yr horizon. That said, I think they will do fine this year. I can't say what will happen by Feb expiration day though :-)