For the week ending December 11, 2009 Nuance Communications (NASDAQ:NUAN) lead all sentiment gainers with a stunning 11.35 increase in their Piqqem sentiment index. Colgate-Palmolive (NYSE:CL) came in with a close second at an impressive 11.30 increase in sentiment, and Teva (NYSE:TEVA) saw its sentiment increase by 7.95 pts.
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 its 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. (Click to enlarge)