Anecdotal Bullish/Bearish Sentiment on StockTwits

Some followers have noticed I’ve recently been sending messages like this each morning:

message

StockTwits is an amazing sentiment discovery tool that allows smart users to quickly get a feel to which way market participants are leaning.

While sentiment is not a stand-alone indicator, its an important input when gathering pieces for your investment thesis puzzle.

Internally at StockTwits we’ve begun sharing some new data points, much of which would bore you. However, I’m very interested in tracking trends in messages that are being tagged “bullish” vs “bearish” on our streams via the message box sentiment slider:

slider

To arrive at a data point for each day, I’m dividing the number of bullish messages by the number of bearish messages published on StockTwits across all ticker streams. A positive number indicates more bullish messages than bearish messages and vice versa. While each data point by itself holds minimal value, each data point relative to the others provides some insight.

Certainly, this is not a perfect measurement as an overwhelming majority of messages published on StockTwits are currently not being assigned a bullish or bearish tag. However, I do believe the limited sample does hold some relevant approximate value to how the crowd is feeling and how that feeling is trending over time.

I’ve begun tracking these trends as of October 14, 2013 and I’ll post this updated chart on my StockTwits stream from time to time for your perusal and I’ll make it available to anyone upon request.

sentiment

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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