Ever since the short squeeze phenomenon at the beginning of 2021, the importance of tracking social media sentiment for specific stocks has been more important than ever before. As explained in my blog post (“Gamma Squeezing, Short Squeezing, and the GME Phenomenon”), a Reddit group known as “WallStBets” was one of (although not the main) driving forces behind the unstoppable short squeezes in what is now known as “meme stocks” or “stonks”. GME (GameStop), NOK (Nokia), and AMC are a few to name, that had a coordinated effort which started online, to buy mass amounts of shares in heavily shorted stocks, causing large hedge funds, such as Melvin Capital, to cover their short positions and take enormous losses. Although many retail traders took advantage of this stock market sentiment opportunity, there are still traders who wish they paid closer attention to what members of large stock forums were buying. Therefore, going forward, how can we as retail traders gauge social media sentiment for certain tickers and find ourselves the next short epic squeeze?
WallStBets, although the most obvious source on our list to gauge social media sentiment, is still one of the best ways to do so. Besides WallStBets being the original source of the short squeeze phenomenon, WallStBets currently has over 10.6 million members! Before the short squeezes, on January 27, 2021, WallStBets had around 6 million members. By February 4th, 2021, WallStBets had 8 million members. Although there has been a monthly drop-off in membership since that is still a huge year-over-year increase, 815% in membership to be exact. In July 2020 (1 year ago from the writing of this blog), WallStBets had only 1.3 million active members.
Screenshot of graph of YoY Increase in WallStBets Subscriber Growth
Swaggystocks.com is a website available to retail that specifically tracks sentiment on a multitude of different social media platforms, although it is mostly centered on WallStBets sentiment. Online Chatter & Ticker Sentiment and Most Mentioned Equities are two options that Swaggystocks offers to track sentiment data.
Screenshot of Swaggystocks.com’s Online Chatter & Ticker Sentiment Data
Stocktwits offers two options to view social media sentiment and volume. The first is viewing Stocktwits’ Trending Tickers, which shows the top ten trending streams on Stocktwits at that time. Trending Tickers refresh every 5 minutes. The second option is by viewing the Most Active page. Most Active tickers are ranked by the top ten symbols with the most messages in the last 24 hours. This page should be refreshed every hour.
Screenshot of Stocktwits’ Trending Tickers
Twitter, like WallStBets and Stocktwits, is another obvious source to view stock sentiment on social media, and like the other two, is one of the top 5 options. Twitter has a huge financial community dubbed “Fintwit”, and you can find almost everything on Fintwit Twitter pages, including options order flow, technical analysis, and breaking news. Stock hashtags are also widely used on Twitter, and by searching trending hashtags, it’s relatively easy to find out which stocks are trending and what Fintwit sentiment is.
Screenshot of Twitter search for the stock ticker TSLA
5. WallStBets Scanner and Social Buzz Scanner on Trade-Ideas
Last but certainly not least on our list is Trade-Ideas’ newly added scanners, the “WallStBets Stocks Scanner” and the “Social Buzz Scanner”. These sophisticated scanners will show you which tickers have been most mentioned on WallStBets, as well as other social media outlets, along with their corresponding charts, and volume scanners. Therefore, you have an array of real-time confluence at your disposal and can make a smart decision as to whether or not you should jump on a trade.
Screenshot of Trade-Ideas’ Wall St. Bets Stocks Screener
How to Keep up with Social Media Sentiment with TradePro Academy
Along with tweeting real-time levels on our personal Twitter feeds. Our community takes advantage of all of the social media sentiment. Resources mentioned in this blog in order to come up with a successful watchlist, and trade ideas list for our members. Join us today at community.tradeproacademy.com to take advantage of the hype and trade with a winning team.
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The information contained in this post is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable for your own financial situation. TRADEPRO AcademyTM is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.