Computers That Trade on the News

December 23, 2010 | Source: New York Times

Traders are using powerful computers to speed-read news reports, editorials, company Web sites, blog posts and even Twitter messages — and then letting the machines decide what it all means for the markets.

Many of the linguistics-based robo-readers look beyond the numbers and try to analyze market sentiment, that intuitive feeling investors have about the markets.

The experts are already talking about the next thing — programs to automatically digest broadcast and closed-caption television.