The Stock Sonar: Predicting Market Shifts Through News Sources
Social media tracking uses algorithms to detect whether brand mentions carry good or bad sentiments. The Stock Sonar takes that same technology and provides rational stock advice.
As part of an example on their homepage, The Stock Sonar used their algorithm to construct a line graph representing negative mentions surrounding the Toyota safety recall in January 2010. They then aligned the chart with Toyota’s stock price. The result was surprising: Days before Toyota’s stock dropped, The Stock Sonar was able to accurately predict a drop four days in advance. This early warning would be enough notice to give day traders time to sell their shares before losing any money. The tool may also be used to chart opportunities, providing you’re prepared to monitor all stock tickers continuously.