I agree with you, this post resonates most with mid and long term traders. I only go into details when someone brings up a point as you did.

Back to the bank example. An uncovered fraud can immediately hurt the banks price, but leave all the other banks unscathed initially . Three months after an investigation and it turned out all banks had shady practices and all of the financials fall. This happens so much more than people realize. Remember Volkswagon emission scandal? Turned out many car makers used cheating devices. How about Deutsche Bank gold manipulation which ended up hurting several other banks doing the same thing months later.

Each and every case is different, and many times with scandalous news there is a waiting period till full realization impact prices and markets adjust (This goes both ways). Of course it is impossible to predict the exact moment. But if you can get a "feel" and fall into a profitable range you're good.

Also with technical analysis many trends in the graph can be attributed to sentiment during that span linked to news. Combining those two makes for a powerful tool. (Example: on a graph a stock is trending down. + It started with a missed earning report, and then doubts that growth can pick up). The combined indicator is more powerful than what the chart is doing or what the news is saying alone.