MarketWatch

10 Things Twitter Won’t Tweet – October 28, 2013

Some analysts say Twitter can help predict which way stock prices are heading, which gives investors an edge that they previously didn’t have. An academic paper published in 2011 by professors at Indiana University and the University of Manchester found that sentiment on Twitter could help predict stock changes in the short-term (anywhere from one to four days later) almost 90% of the time. For instance, when people’s tweets suggested growing anxiety, the Dow Jones Industrial Average often dropped. The opposite occurred when tweets suggested people were becoming more calm or relaxed. (more)