Friday, December 14, 2007

Search engine trends and stock performance

This is the kind of stuff that I usually write in my other blog.

Can Google Zeitgeist help you predict the stock market trends ? I heard about this today on Fast Money !

Given above are the following charts,
1) Google Trend chart for XBOX and Playstation searches
2) Stock Price chart for Microsoft (Left)
3) Stock Price chart for Sony Corp(Right)

The question here is whether the spikes on the trend chart have immediately preceded (at least often) spikes on the stock price chart. If yes, Is it possible to closely follow such trends in every market and make the right stock picks ?
I need to take a look at several more jagged peaks before I make up my mind on this. Anyway, the idea that search trends can be tracked to predict stock swings had never crossed my mind before. Well, long way to go :-).


At 10:28 PM, Blogger Mahesh Vijayamohanan said...

Phew! never knew you were into this kinda stuff!


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