Thursday, June 25, 2009

I've been struck by the lack of regulation of the twitter market for stock commentary. Having worked in the securities industry I'm all too aware of the insane data mining and record keeping that has become the norm (all emails, IMs, etc). However, tweets fall between the cracks. Stocks are starting to be moved by comments made on twitter and that's going to eventually get someone's attention at the SEC. Now, it might be 2056 before some government subcommittee is formed to address "this Twitter-thing" but it's coming.

Consider this Barron's article on the subject.....

"With some fine-tuning, you can almost recreate the instant-messaging network that traders at hedge funds and investment banks use to communicate with each other."

Quote of the day - "Stocks are not associated with underlying fundamentals anymore, they are just 3 and 4 letter symbols to be traded in video game manner by institutional computers and retail home gamers."

Boy if that's not the truth. The power of daytraders is unreal right now.

What I'm reading.....

Lear Corp, the second largest auto seat manufacturer is preparing for bankruptcy.

Recession's Children

800 BA workers to work for free

Googlevoice is coming

Genzyme plant closure causing drug rationing



Anonymous said...

Only those who twitter, would care about others who twitter. It's beyond me how anyone would be dumb enough to make financial decisions based on the oftimes "commentary drivel" of faceless masses. Clearly they must have somehow missed the "commentary drivel" on the other side of any given trade by the oposing group of faceless masses.

Who cares what idiots do with commentary being confused with fact. It's what makes the whole trading game fun to watch and hopefully profit from.

PS: This isn't about your blog, which typically has good data sets, so don't take it personally :)

website video said...

I have google voice but don’t see the option to invite yet? Is there a time frame on when all accounts will get this option?