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Introducing SENSEnews

Babur Ozden
Babur Ozden

This document introduces a new stock indicator system that aggregates and analyzes news and social media content to generate a "News' Impact" curve that correlates with and predicts stock price movements. It claims the stock indicator outperforms major indices like the DJIA and S&P 500 when used as a trading signal, proving the underlying mechanism works. The system provides customized analysis and stock picks based on current news sentiment for particular stocks.

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Introducing SENSEnews
Today, All Stock Analyses and Trading Strategies are derived from one, single data (curve): Stock Price
We invented a second curve, by aggregating all news and social media content: News Impact
The second curve, News Impact, is the driving force behind stock prices, which is visibly correlated.
More...
This invention led to: A new Stock Indicator Stock Indicator
and its effectiveness is proven by yielding higher returns than that of DJIA and S&P 500 when used as a trading signal Stock Indicator
With it, we can offer best-stocks-picks for the current market conditions.
Or the user can analyze any stock of his/her choosing:
This is the first system (in the open literature) that can value stocks entirely based on available information on news and social media. In financial economics, this is known as efficient market hypothesis if it could be done by all human traders. We built a computerized version of it.
Also applied to phenomena where asset prices are not involved: Indexes
These are also first in the world!
A More Detailed Look: How Does it Work?
The critical innovation is the ability to scan all news sources (every 30 minutes) and extract relevant information about a stock/company.
This is done by a set of default criteria to filter relevant information. All the user has to do is to enter the company name, like Netflix..
The result is a chart: that shows the progression of Good/Bad news about Netflix in the media.
Then it is compared to its stock price chart to identify the deviations:
Good news pumped, stock price has not yet reacted: UNDER-VALUED Stock
Bad news accumulated, stock price has not yet reacted: OVER-VALUED Stock
Supported by a 6 months simulation of the Stock Indicator, showing the strength of the signal.
Further confirmed by trading against DJIA beating the index around 30% (equal weight trading)
and 14.6 times higher return from S&P 100 stocks
Using the Stock Indicator to beat the known indices is a proof that: 1- The underlying mechanism of the Stock Indicator works 2- Aggregating news and scoring via semantic technology produce valid correlations
The user can dig down, read news articles, get alerts, and adjust the scoring system.
SENSEnews is a Subscription Service. Number of subscriptions is limited not to dilute the trading advantage.

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Introducing SENSEnews

  • 2. Today, All Stock Analyses and Trading Strategies are derived from one, single data (curve): Stock Price
  • 3. We invented a second curve, by aggregating all news and social media content: News Impact
  • 4. The second curve, News Impact, is the driving force behind stock prices, which is visibly correlated.
  • 6. This invention led to: A new Stock Indicator Stock Indicator
  • 7. and its effectiveness is proven by yielding higher returns than that of DJIA and S&P 500 when used as a trading signal Stock Indicator
  • 8. With it, we can offer best-stocks-picks for the current market conditions.
  • 9. Or the user can analyze any stock of his/her choosing:
  • 10. This is the first system (in the open literature) that can value stocks entirely based on available information on news and social media. In financial economics, this is known as efficient market hypothesis if it could be done by all human traders. We built a computerized version of it.
  • 11. Also applied to phenomena where asset prices are not involved: Indexes
  • 12. These are also first in the world!
  • 13. A More Detailed Look: How Does it Work?
  • 14. The critical innovation is the ability to scan all news sources (every 30 minutes) and extract relevant information about a stock/company.
  • 15. This is done by a set of default criteria to filter relevant information. All the user has to do is to enter the company name, like Netflix..
  • 16. The result is a chart: that shows the progression of Good/Bad news about Netflix in the media.
  • 17. Then it is compared to its stock price chart to identify the deviations:
  • 18. Good news pumped, stock price has not yet reacted: UNDER-VALUED Stock
  • 19. Bad news accumulated, stock price has not yet reacted: OVER-VALUED Stock
  • 20. Supported by a 6 months simulation of the Stock Indicator, showing the strength of the signal.
  • 21. Further confirmed by trading against DJIA beating the index around 30% (equal weight trading)
  • 22. and 14.6 times higher return from S&P 100 stocks
  • 23. Using the Stock Indicator to beat the known indices is a proof that: 1- The underlying mechanism of the Stock Indicator works 2- Aggregating news and scoring via semantic technology produce valid correlations
  • 24. The user can dig down, read news articles, get alerts, and adjust the scoring system.
  • 25. SENSEnews is a Subscription Service. Number of subscriptions is limited not to dilute the trading advantage.