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Python Stock Market Analysis

The process

  1. Get historical data
    • Stock market open/close
    • Archival finance news (i.e. New York Times finance section)
  2. Create mechanisms to gather current data on a daily basis
  3. Perform sentiment analysis against news data to determine positive v. negative coverage.
    • To keep it simple for now (and avoid the need for manual classification and training), I will create one list of positive terms, and one for negative terms.
    • If more positive terms exist between open and close, the days news will be considered positive, and vice versa.
  4. Determine if there is a correlation between the sentiment of the news stories and the market's behaviour.
  5. Use the data collected to train/test a machine learning algorithm.
  6. Predict future stock market behaviour based on the sentiment analysis of the previous days news.