Over the past several years, social media sources like Twitter are being used more frequently to distribute company news, information, and analysis of Futures and Options. There are 800 Million Tweets a day across the globe. Social media often raises awareness of news and information more quickly than traditional news sources.
Social Market Analytics is excited to announce a partnership with the CME to provide real-time Twitter based sentiment for their active trader website:
https://activetrader.cmegroup.com/Products/EquityIndex?s=EP
This website enhancement allows commodity traders instant real-time access to Twitter based sentiment metrics summarizing the opinions/intentions of professional investors and the number of Tweets from these professional investors. Charts can be expanded by clicking to show different time periods.
There are two fields - S-Score and S-Volume. S-Score is a normalized representation of social media sentiment over a 20-day look back period. S-Score measures the deviation of changes in sentiment intensity of a given commodity and answers the question, “Is the conversation on Twitter about a particular commodity significantly more positive or negative than normal?” Higher levels of sentiment indicate a stronger reaction. High positive sentiment indicates a commodity is statistically likely to move higher. High negative sentiment indicates a commodity is statistically likely to go lower. SMA’s normalization and scoring process calculates the S-Score for each commodity with active conversations. S-Scores range from -4.25 to 4.25. S-Score above +2.0 or below -2.0 are extreme positive and extreme negative. Scores between 0 and 1 or 0 and -1 are neutral. Volume represents the number of indicative Tweets used in the calculation of sentiment. These are forward looking Tweets from SMA certified professional investors.
