For the week ending February 5, 2010, Sequenom (SQNM) lead all sentiment gainers with a strong 16 pt increase in their Piqqem sentiment index, Maguire Properties (MPG) came in second with an impressive 8 pt increase in sentiment, and Activision Blizzard (ATVI) saw their sentiment increase by 5 pts. Overall Piqqem had 104 stocks advancing in sentiment while 130 stocks saw their sentiment decline.
Change in sentiment provides a timing mechanism to understand underlying changes in a security potentially ahead of a price move. For example, a large increase in sentiment should be seen as positive even if the underlying stock has a low absolute sentiment, while a large decrease in sentiment should be seen as negative even if the underlying security has a high absolute sentiment.
For this analysis, we will use sentiment generated by the web application, Piqqem. Piqqem captures, processes, and displays sentiment results by allowing its users to vote on the price direction of a stock and then applies its own propriety factors to calculate sentiment for a security. In their model, a scale of -100 to 100 is used with -100 representing the lowest level of sentiment and 100 representing the highest level of sentiment.
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