Long run vs. short run

The best — but by no means satisfactory — conclusion is that the fundamentals do not rule the market consistently and reliably. Maybe the fundamentals rule in the long run, but the long run is nothing more than a series of short-runs, and in the short run, the market is often in the grip of a chart pattern that tickles the imagination, a rumor that defies common sense — a story or scenario that is patently false, or just plain thrill-seeking.

In the end, the duel is not between the fundamentals and the technicals, but between rational decision making based on facts and analysis, and traders who need to make money by going with the flow, even when that means taking seemingly irrational positions.