Undoubtedly you are right that fundamentals
ultimately drive valuations for companies in the long term.
Without cash flows etc, there is no company, well
certainly in the long term.
I started out as a pure
fundamentalist because that is what makes sense. I learnt some
of the rudiments of TA purely to see someone else's
perspective and got a mighty surprise as I listened to what
they were saying. TA can help pinpoint the time or the
price at which a series of prices MIGHT change, or
MIGHT bounce or MIGHT go through.
There is no
certainty. But all I can say is one thing. I never got my
TIMING right with purely fundamental investing. With
some TA (and I guess much TA depends on your own
analysis and interpretation of that analysis) I massively
improved my timing and hence my profits.
The fact
does remain, regardless of what the markets did or did
not do, regardless of what DIGL has done (which I am
a big fan of), that DIGL did turn around at $75, it
did fall to $56 (lower actually) and $60 has proved
to be both a ceiling and a floor. All this was
enabled by use of TA in some form or other.
I
agree with you that the underlying driver of the
company's value is its actual business activities. I
believe DIGL to be a very exciting prospect, primarily
because of its business activities which are already
producing great revenue and profit growth. Thereafter, I
need some way of identifying when might be a good time
to buy or sell.
Hopefully you now see this as
a common sense contribution to your eloquent
posting.