Technical analysis is my bread-and-butter as a trader, but lexical analysis?
The website pennysleuth.com is featuring an article claiming that word count analysis of the Federal Open Market Committee statements can predict the market movements.
The article is here.
This has possibilities.
If I could take moving averages of FOMC wordcounts and turn them into a moving average cross-over signalling system, and then buy and sell derivative contracts on future FOMC wordcounts, and then create an FOMC Wordcount Volatility Index (the FIX? WIX?) based on those futures, and then perhaps create a market for FOMC Wordcount Volatility Index futures, and then sell options on those futures, . . .
The possibilities are endless!!! I foresee an FOMC wordcount bubble a few years down the line, and we can all profit from that, before it crashes, bringing the economy crashing down yet again.
Well, trader dreams, trader nightmares.
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