Significant Event: Spike in ChatterSignificant Event Indicator:
The Spike in Chatter Alert indicates an extremely high probability of the stock moving up or down with a minimum + or – 3% gain over the next 20,40,60 trading days.
This alert is comprised of chatter velocity and chatter volume. When a significant event occurs it is identified by a rapid and quick acceleration in chatter indicating a major event is taking place or about to take place.
*Important Note – The Sentiment of the SPDR S&P500 (SPY) must ALWAYS be checked first. If the SPY indicates a Red 60 Day Downside Potential then the market usually drops in the following one to two weeks. In this case, regardless of the indicator showing a move up, it will move downward because of the market as a whole.
Example BBSI – on Oct. 28th was closed around $44 per share and announced earnings. On the graph below we can see that chatter volume was for the most part non-existant. The following day, Oct. 29th, BBSI dropped to $18.28 per share before their earnings call, chatter volume spiked significantly, and a Chatter Volume alert was generated. The following day, Oct. 30th, BBSI closed the day at $20.74 per share. The Chatter Volume indicator alerted customers to a 13.5% return in 24hours.