Many techniques exist that use historical stock prices and technical analysis for predicting when to purchase a stock. However, to the best of our knowledge, the models in practice do not incorporate one of the major factors contributing to stock price changes: news.

We believe that people who read and listen to the financial media see patterns in a stock's price movement based on news about the company. These beliefs gave rise to the development of an approach that determines if the appearance of good and bad news affects the direction of a stock's price.

At FNA, we search for correlations on a stock-by-stock basis between price changes and story classifications from a financial news analyst. If a significant correlation is found between the classifications and historical price changes, the by-products of finding the correlation can be used to predict the direction of future price movements.

It is our goal to provide you with the tools for converting the process of reading about stocks into predicting the direction of stock prices. All you need to do is become a member of FNA, and we'll provide you with the support and service to improve the probability of picking winners.