News Patterns: Trading

Example Solutions: Trading and Risk Management

		Tracking 20,000 Articles per Month in Wireless Sector In early 2004, a major wireless supplier suffered a 30% drop in market value over a one week period. Were relevant patterns lost in the news? The problem is information overload. Nowhere is this problem more pronounced than in regard to scanning a marketplace for relevant news and blog articles. The Wireless Sector is an example of a market where thousands of daily articles need to be scanned, filtered and patterned for possible threats and opportunities. Somewhere amongst these innumerable articles might be emerging competitor, technology, supplier, government regulation or other trends that are invisible without advanced filtering and patterning tools. The stock index chart to the left illustrates a significant drop in one company's market value versus a similar wireless company and the general Dow Jones Industrial average. A surprising announcement of an expected shortfall in future revenues lead to a negative market reaction.
Stock Index Chart of Major Wireless Companies (red & blue) with Dow Jones Industrial (green)


Event Radar Graphical Animation of Wireless Sector News: 4Q03-1Q04+
		Animated Event Radar Tracks 60,000 News & Blog Articles Before and After Major Market Movement One of the powerful News Patterns tools is Animated Event Radars. These radars produce animated graphical images that summarize tens of thousands of articles over many months of market activity. Patterns of interest can be further investigated by clicking through to the actual news and blog articles at a particular point in time. The resulting power enables a trader or risk manager to scan and track a great scope of market events in real-time. In regard to the major decline in share price, an analyst using Event Radar could have tracked these significant events that were amongst the 60,000 articles preceding the company announcement of lower sales projections: Emergence of Korean manufacturers and their innovative cell phone styles. Growing importance of Indian and Chinese markets. Growing influence of competing wireless standard. Market acceptance of color camera phones. Relative market disappointment with introduced gaming platform phone.
Click here for radar animation