U.S. Economy and Mid-Terms, What Now?

A new balance of power has been ushered into the Senate.

The United States Marine Corps taught me to embrace fresh leadership because that’s one of the principal mechanisms that keeps our institutions truly focused on their core values and ethos.

The Republicans have gained back the Senate and we’re now watching all the direct and indirect plays from this event. General election winners will take office in January 2015, but what happens between now and then?

Our short-term sentiment indicators are pointing to an overall market downturn in the next several weeks and we need to get prepared.

Since the beginning of the year, my system has generated eight negative alert signals for the broader market. Seven of those alerts were followed by negative corrections within two to four weeks, including the big drop in October.

After last week’s new highs on the S&P and on the Dow, we received two more negative alert signals.

My Social Media Collective Intelligence system (SMCI) closely follows the baseline sentiment (buy/hold/sell) of 2.4 million financial chatter messages per day. The system sends out alerts whenever there’s a major shift in sentiment from one position to another that has historically predicted price movements.

One technique we’re able to harness through this powerful tool is a reputation engine.

Financial chatter messages show direction from the author’s written sentiment (buy, hold, or sell) which our system captures through a variety of techniques. If the author says buy and the stock price goes up, that author’s reputation score goes up. If the author says buy and the stock price goes down, their reputation score will go down.

Most message authors go through cycles of winning streaks. And we’re watching them so that we can generate our alert signals in a timely manner. Right now our front-running authors are seeing a slight downturn in the market over the next several weeks.

If you’re interested in seeing how to take advantage of these downturn opportunities, you can get more information here.

As always, I’ll continue to monitor the market’s social media collective intelligence and keep you updated on the latest trends.

Happy Hunting,

Ben_signature

 

 

 

Ben

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Categories: Investing

About Author

Ben Benoy is a veteran of the U.S. Marine Corps and has been an active retail trader since 2006. He identifies investment opportunities based on key social media trends. He first identified the concept in 2008 and has since developed a tool for tracking investment “chatter” between social media users. His proprietary Social Media Stock Sentiment system has developed into a state-of-the-art platform that identifies and classifies chatter about stocks through algorithms and other indicators to forecast stock-price direction. Ben’s track record speaks for itself — over the past 12 months, his system boasts a win rate of 82.2% on 112 stock trades.