New Twitter Sentiment Project

You guys may have read not long back that a team of people built a mood reader of the stock market based on twitter and found that it was very accurately predicting the stock market. (See this news article)

They expected that the Dow Would first rise and then on twitter you would see people feeling good and vice versa but they had a bit of a suprise when they discovered that it was the other way round. ie. The mood changes first, and then the stock market follows 2-5 days later.

I was reading that they still cannot explain this phenomenon yet people who have studied socionomics will understand exactly why they got that result.

I have been building my own little system that reads twitter and then gives back a result. It is in its very early stages but i will keep you posted on how it develops. Being from a software background and i love challenges like this so i am confident in achieving a good result and then perhaps even putting it up on this website. This will be developed in my spare time between running business and a family so it may take a short while.

P.S. Current update on the markets: Enjoy this final wave 2 leg up as this is a good mood while it lasts. Next stop, down, and in a big way. Make sure you are not over exposed on the long side or you may get caught up in the cross fire and volatility starts to rise and people pull out of equities and commodities in an all the same market fall.

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