"SenseNews has invented a new curve, what they call 'News Effect' curve. They have devised a mechanism to relate the breaking news and social media blurbs to th

"SenseNews has invented a new curve, what they call 'News Effect' curve. They have devised a mechanism to relate the breaking news and social media blurbs to the stock price impact... It is a new indicator for stock and bonds. It computes value and position of a stock based on, the breaking news and social media blurbs." This might be the first commercial service based on such an analysis, but it's hardly new. See, for instance: Financial Analysis Using News Data: http://www2.cs.sunysb.edu/~wbzhang/papers/RPE_final.pdf http://www2.cs.sunysb.edu/~wbzhang/papers/RPE_final.pdf Trading strategies to exploit news sentiment: http://ftp.cs.sunysb.edu/~wbzhang/papers/stock.pdf http://ftp.cs.sunysb.edu/~wbzhang/papers/stock.pdf Text Mining Systems for Predicting Market Response to News: http://www.iadis.net/dl/final_uploads/200708C025.pdf http://www.iadis.net/dl/final_uploads/200708C025.pdf Newscats: A news categorization and trading system http://ieeexplore.ieee.org/xpls/abs_all.jsp?arnumber=4053143 http://ieeexplore.ieee.org/xpls/abs_all.jsp?arnumber=4053143 Trading Strategies To Exploit Blog and News Sentiment http://www.aaai.org/ocs/index.php/ICWSM/ICWSM10/paper/download/1529/1904 http://www.aaai.org/ocs/index.php/ICWSM/ICWSM10/paper/downlo... SOPS: Stock Prediction Using Web Sentiment http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.114.3669&rep=rep1&type=pdf http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.114... News and Trading Rules http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.72.4530&rep=rep1&type=ps http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.72.... Modelling the Stock Market using Twitter http://homepages.inf.ed.ac.uk/miles/msc-projects/wolfram.pdf http://homepages.inf.ed.ac.uk/miles/msc-projects/wolfram.pdf etc, etc, etc.. the research papers in this field just go on and on and on. Everything from mainstream news, to blogs, to stock message boards, and even stock-themed spam has been analyzed and used to devise trading rules and predict market conditions.