Wall Street Computers Read The News Before Trading | Singularity Hub.
Just like you, computers analyze the news before trading stocks. Only they do it thousands of times a second and subscribe to millions of news agencies.
Singularity Hub might be affecting the way stocks are traded on Wall Street. So could a lot of blogs. And Twitter feeds. Maybe even comments. That’s because there’s a growing trend among investment firms to perform sentiment analysis of online and traditional news sources. Using advanced software, companies can look at the opinions expressed in thousands or even millions of news stories, blog posts, and tweets. These forms of ‘unstructured data’ can be combed for important key words, numbers, or emoticons that give insight into how the public views a particular company or stock. Private firms have undoubtedly been harnessing such widespread sentiment analysis for years, but the capability has now hit the mainstream. News and data aggregators like Bloomberg, Thomson Reuters, and Dow Jones provide services that parse written text into machine-readable forms that investment companies can easily feed into their opinion-hungry computer programs. Such data is now available milliseconds after articles are published online, making it a valuable commodity to ultra high frequency traders. Whether we notice it
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