StockGeist.ai is an interactive platform, powered by deep learning, that provides real-time market sentiment indicators of 2200+ stocks covered in the S&P 500, NASDAQ 100 Index in addition to businesses in the publicly traded technology and biotechnology sectors. The analysis takes into consideration mentions across social media platforms as well as analyzing textual information with natural language processing (NLP).
What is a Market Sentiment Indicator?
A market sentiment indicator is designed to represent how a group of people feel, in this case those that are posting on social media platforms regarding a particular stock or the market in general. These market psychology-based indicators attempt to depict sentiment, in the form of figures or graphically, to help provide traders with information that may precede market fluctuations and changes in behaviour.
Additionally, market sentiment indicators are used by traders to try and differentiate between whether a stock is being influenced by emotion rather than rational decision making. These indicators prove to be invaluable as an investment tool because of the irrational behaviour of traders, whose corresponding messages to fundamental changes are not necessarily in direct proportion to the initial movement.
The fundamental value of a stock is a reference to company-specific business performance, and is often associated with a long-term buy-and-hold strategy. Contrarily, market sentiment indicator analysis provides an alternative perspective when analyzing the performance of a stock, and is typically associated with short-term trading methods.
It is important to note that investor sentiment has a limited lifespan and you cannot pinpoint exactly when it will change ahead of time. A spike in sentiment data can last any given amount of time; anything from a matter of minutes or several weeks.
How can market sentiment indicators affect stock prices?
Sentiment is seen by many to drive demand and supply, which in turn leads to price movements. Market sentiment is bullish when prices are rising, and contrastingly bearish when prices are falling.
Classical finance theories and models attribute no role of market sentiment indicators influencing the cross-section of stock prices, returns or potential returns. These theories are driven by the principle of stock market prices only reacting to new information. In contrast, contemporary analysis, such as that by Baker and Wurgler (2006), state that stock market sentiment leads to traders using pessimism or optimism whilst predicting price movements instead of traditional fundamental analysis of EPS or the P/E ratio.
Note: there is undoubdetdly a strong growing acceptance of stock sentiment analysis as an effective and important trading tool, but market sentiment indicators should be used in conjunction with other trading analysis tools and methods. It would be unwise to assume that positive sentiment = price rises or vice versa. However, as an additional analytical tool it can certainly provide traders with a competitive advantage.
Examples of StockGeist.ai Market Sentiment Indicators:
The below features are a glimpse into what StockGeist.ai has to offer when it comes to providing the very latest market sentiment indicators for thousands of different publicly traded stocks.
Stock Overview
When you select a stock of your choice, you will be presented with the sentiment tracking graph, depicted below in the given example. Depending on your preference you can select the “Candles”, “Line” or “Area” view.
Making sense of hundreds or even thousands of messages every few minutes is a trivial task which is why StockGeist’s interactive platform is such a valuable tool for traders wanting to view market sentiment indicators with just a few clicks.
Sentiment
The analysis of textual information mentions from messages on social media is categorized into two categories:
- Informative (e.g. “X company has reported a loss in the final quarter”)
- Emotional (e.g. “To the Moon! Let’s get rich!”)
Users can see the distribution of messages based on their Positive/Neutral/Negative market sentiment indicator.
News
Scouring the web for the latest news articles relating to your desired stock of choice can be a lengthy and tedious task. StockGeist does this job for you by crawling the internet for the latest news stories and labeling them by positive/neutral/negative as a useful form of market sentiment indicator for users.
Not only does the AI-powered system determine the financial elements within a news article and highlight key areas of text that are seen as important sections for the reader, we also show the number of shares for that article in the last 24 hours.
WordCloud
The WordCloud feature is a great form of market sentiment indicator due it being the fastest way to grasp what people are saying regarding a particular stock. Our platform flags up the most popular topics/trends the crowd are talking about online with real-time ongoing analysis. No language filters are used on the WordCloud feature which allows users to directly experience what is being said by the masses across various social media platforms at that moment in time.
Factors contributing to the overall stock sentiment:
News stories are always evolving and with the current modern age these stories can reach a large demographic within a very short period of time. Such factors that play a part in driving change in market sentiment indicators include news updates surrounding:
- Industry and company news: this can range from officially published quarterly reports or news developments concerning changes in the industry, upcoming product launches or earnings. These updates are often the most volatile for shifting market sentiment indicators and ergo price change.
- Political and economic policy changes: news and announcements from central government, particularly the reporting on the current and post state of the economy to fuel pessimism or optimism within the market is often translated well by market sentiment indicators.
- Rumours and speculation: it’s not only concrete truths and law changes that can alter the stock sentiment. Instead, speculation and rumours, or “fake news” can cause an instant shockwave through the market before any verifications have been made. A prime example of this would be the gossiped potential takeovers of companies.
Other known factors with the ability to influence market sentiment indicators available on the StockGeist.ai platform include national events, global events and price history. Each factor can play a key part due to the impact that these updates have on a company’s earnings, trading volume and volatility of both the asset and the general market.
What sets StockGeist market sentiment indicator platform apart?
Using StockGeist’s innovative AI-processed data, traders can access up to 1 month of historical sentiment and ranking data. Analyzing historic sentiment in stocks data is a key tool in determining predictions for how future news and updates will impact the market psychology and the stock price in turn. Assisting traders with their portfolios, StockGeist provides users with the freedom to create custom watchlists, detailing the dynamics of the sentiment within a specific stock over either a 5 minute, 1 hour or 1 day period.
Using StockGeist’s innovative AI-processed data, traders can access up to 1 month of historical sentiment and ranking data. Analyzing historic sentiment in stocks data is a key tool in determining predictions for how future news and updates will impact the market psychology and the stock price in turn. Assisting traders with their portfolios, StockGeist provides users with the freedom to create custom watchlists, detailing the dynamics of the sentiment within a specific stock over either a 5 minute, 1 hour or 1 day period.
Start using our platform now by launching the dashboard and creating your custom portfolio harnessing the various available forecasting tools.
