Rebecca Greenfield, at the Atlantic Wire, reports on a hedge fund that took all its advice from Twitter, and beat the stock market:

Not all words or moods reflect the markets ebbs and flows. The algorithm specifically looks at the level of calmness on Twitter explains Jordan. “Their results showed that rises and falls in the number of instances of words related to a calm mood could be used to predict the same moves in the Dow’s closing price between two and six days later, with a fall in these “calm” words being followed by a fall in the index. The other moods did not have the same predictive quality, the paper said.” Specifically, it looks for words like “alert,” “happy,” and “vital,” adds Financial News Michelle Price. “Derwent Capital scans a selected 10% of available tweets at random and will then categorise these messages into one of a range of mood states.”