Mood of the Markets…Sentiment Spikes in a Mobile and Social World
I am working with two busted fingers on my left hand for the next 6 weeks which is a bummer because I am in a writing mood.
I have been trading a little bit off the mood of the market the last few weeks with some good results. We have entered an era where the news and flow of data is upon us from every angle…24/7/365. We are all involved whether we like to invest/trade or not. Your emotions and interests and spending are being tracked and shared in real-time.
I have been calling it ‘The Human Ticker’ since 2008, but it is really starting to take shape with the $FB IPO and now the $TWTR IPO. The explosion of Chinese communication apps have just made it more fascinating and wild. We are proving it everyday on Stocktwits. I see thousands of beginners catching on to it.
You can hate Facebook and Twitter – the products, the stocks and the Companies – but it is impossible to deny that they have connected the world and it has changed the shape of stocks and markets. They inspired us to create Stocktwits which adds a deeper level of communication, context and community to the connectedness.
Against a backdrop of global money printing, look at the inflows and outflows from Stocks into Bonds and vice versa in the last year.
The huge rally in stocks picked up steam last June and July as RECORD money poured out of Bonds into stocks in a ‘risk on’ fashion. That has ended pretty quickly in January. The size and speed of the panic surprises even me. I never thought it was such a great stock buying environment, nor do I feel the world just came to an end for equities. I am managing within this new inefficient environment.
I have never been an ‘efficient market’ believer. I believe markets are efficient for a few moments a year, but spend most of their time completely inefficient. The social and mobile world (and all it’s data) add a new level of chaos to any possibility of efficient markets.
It will be interesting to see how this recent volatility spike plays out…is today (like I wrote earlier in the week), the last great time to sell, or is this just another social and mobile connected head fake.
I do know that my data is as good as anyone’s (except the cheaters which like always I assume are all around me) and I am getting it in real-time.
The cost of this to me….$0.
No excuses anymore.
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Mood of the Markets…Sentiment Spikes in a Mobile and Social World
