Twitter Posts Gauge & Predict Market Patterns?

As firms try to figure out what "new" media may mean to their business, many are racing to a finish line they cannot see. Ken Warren of 2020 Public Relations in Connecticut counsels clients to try new media, but set capture-lines where you can see if you actually captured any business.

Bloomberg News reports Dec 22 that Derwent Capital Markets, a family- owned hedge fund, will offer investors the chance to use Twitter posts to gauge the mood of the stock market, said co-owner Paul Hawtin. The Derwent Absolute Return Fund Ltd, set to start trading in February with an initial 25 million pounds ($39 million) under management, will follow posts on the social-networking website. A trading model will highlight when the number of times words on Twitter such as “calm” rise above or below average.