Using Twitter Mood Analysis to Predict Market Moves? (SPY)
|School of Fish i.e. Twitter users/traders|
There has been much quiet debate about the topic of quantifying tweets to gauge sentiment the past year or so. Most of the debate and hypothesising has been behind closed doors and of course off the twitter streams in my opinion because the real power behind this potentially highly profitable technology.
The potential energy stored in the brains of individuals who are developing and or those already using sentiment predicting/quantifying systems is massive. Understanding the school of fish mentality can greatly benefit traders/funds/governments alike, though understand which direction the school of fish will turn next is where the money resides.
As you may or may have not seen already there has been a fund seeded with nearly 35$ million dollars based out of the Cayman Islands using exactly the sentiment quantification systems i talked about above as the basis for their profit model. This is the first real press release i have seen explicitly stating sentiment gleaned from twitter is an accurate way of predicting which way the market will move.
Stay tuned i have more to come…..