Friday, September 14, 2007

Can "Short Selling" Buzz Predict Market Conditions?

Below is a graph showing some interesting findings comparing discussion about “Short Selling” stock and the Dow Jones Industrial Average (DJIA) between January 2007 and early September 2007. As you can see, online discussion about “Short Selling” peaks Jan 07’ through March 07' and again June 07’ through August 07’. Interestingly, the DJIA increases between April 07’ – May 07’ when discussion about “Short Selling” goes down. Now I’m not saying online buzz about “Short Selling” is predictive of market conditions, but it warrants attention.

Feel free to contact me if you have any questions about this posting or methodology.
Have a good weekend!


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