Twitter Mood Predicts the Stock Market

Their extraordinary conclusion is that there really is a correlation between the Dow Jones Industrial Average and one of the GPOMS indices–calmness.

In fact, the calmness index appears to be a good predictor of whether the Dow Jones Industrial Average goes up or down between 2 and 6 days later. “We find an accuracy of 87.6% in predicting the daily up and down changes in the closing values of the Dow Jones Industrial Average,” say Bollen and co