StockTwits. The meeting place of many of the best minds in the trading world, contributing a constant stream of valuable information.
Now combine the power of the #1 social network for finance with the laser focus of Social Market Analytics’ patent-pending sentiment analytics technology.
A 4X daily report package pinpointing the top 10 and bottom 10 most and least popular stocks of the moment, calculated using the same methodology that Social Market Analytics uses to provide social media intelligence to NYSE and leading trading firms.
For the first time ever, you can find the signal in StockTwits messages, delivered at key times of the trading day directly to your desktop, tablet and smartphone.
When it comes to squeezing "actionable intelligence" - that traders' edge - from social media, Social Market Analytics is an "eLewis and iClark" that stands out
StockTwits’ thousands of daily messages are passed through a 3-stage proprietary process to create sentiment scores that can be easily and quickly evaluated.
We look for messages that discuss the intentions and perspectives of those individual investors and commentators.
Our patent-pending technology identifies stocks with the most positive and negative social sentiment and delivers them to you in an easy and manageable format.
ST-Score simply is a measure of how much more positive or negative the sentiment is for a stock compared with a lookback period.
Our research has shown that stocks with ST-Scores over 2 have a high probability to beat the market. Stocks with ST-Scores below -2 have a high probability to lag the market. This is the key to eliciting the intelligence from the crowd and mining the social capital.
We took 2 recent examples from the current earnings season to demonstrate the value of this groundbreaking new service.
While the debate continues as to whether Alcoa is still a bellwether for the wider economy, smart traders are looking to a bellwether of another kind – social sentiment analysis of stocks.
On July 8, 2014, Alcoa, Inc., reported earnings after the market close. AA's earnings beat estimates by 50% and the stock price surged 2% in after hours trading.
During the market session on July 8, AA's ST-Score increased steadily throughout the day. In particular, AA’s ST-Score breached the significant level of 2.0 at 12.25 PM and then, during the last hour of trading (after 3PM Eastern), AA's ST-Score went through the 3.0 level, holding steady in to the close. AA closed the July 8 session at $14.85, basically flat on the day.
On July 9, AA opened at $15.24, a gap of 2.6% from the previous close. AA continued to rally to end at $15.68, a gain of 5.6% from the previous day’s close. On July 10, the rally continued, with AA reaching an intraday high of $15.96.
Rather than deliberate on whether AA is a bellwether any more, traders could have taken a long position, entered any time after 12.30 PM Eastern on July 8 and would have realized a good gain if closed out any time on July 9 or 10.
A company that makes a 6.5 inch drone that looks and maneuvers like a hummingbird may not be on your radar right now, but with the StockTwits Edge report eliciting the hottest stocks of the moment, you have a new source of trade ideas.
Around the same time as AA was releasing earnings, another lesser-known company was doing the same. AeroVironment, Inc., a supplier to the Defense Department beat analysts’ estimates, its price surging 6.6% in after hours trading.
On July 8, AVAV’s ST-Score breached the significant 2 level shortly after market open and proceeded to flirt with the 3 level for the rest of the session. AVAV closed the day at $30.88, basically flat.
On July 9, AVAV opened at $33.04, a gap of 6.5% from the previous close. AVAV continued to rally to end at $35.01, but not before reaching a HOD at $36.44, a gain of 18% from the previous day’s close.
A long position, entered any time on July 8 would have realized a good gain if closed out at any time on July 9.
Our daily reports delivered at 08.00, 09.00, 10.00 and 15.00 (ET) provide you with:
showing you where the conversation is most positive and most negative, to help you spot trends and take action.
Get the power of Social Market Analytics' patent-pending technology combined with the #1 social network for finance -- StockTwits!