YouDevise Limited today launched a new "Hot Stocks" feature within the TIM Insight section of the Trade Idea Monitor (the TIM), the leading trade idea / alpha capture system used by institutional brokerage firms and money managers, including many of the world's largest.
Hot Stocks lists four equities on a worldwide basis and four per region and sector where there has been significant broker activity over the last 48 hours. The designation is based on the number of contributors who are entering new long or short trading ideas on the stock, or closing existing ideas, relative to the normal level of activity in that stock and others.
"We believe Hot Stocks is the first commercially available early warning indicator of a major change in trading sentiment on an individual stock basis," said Colin Berthoud, founding partner of youDevise and co-developer of the TIM. "By definition, hot stocks are about to become crowded. For the buy side, this might indicate a good time to invest or divest a holding. For the sell-side, it might indicate a need to change their stance on the stock."
The data is culled from ideas sent by more than 4,300 professionals at 350 institutional brokerage firms to their clients at approximately 150 hedge and quant funds and more traditional investment managers. Buy side TIM users can access ideas underlying Hot Stocks if the authoring brokers have permissioned them to do so. Sell side TIM users can access only the ideas authored by their own firm.
"Hot Stocks" is part of the TIM Insight package of value-added premium services that financial technology vendor youDevise is introducing by leveraging its rapidly growing database of trading ideas from its expanding worldwide base of institutional sell and buy side firms. TIM Insight also adds depth and context to the trade ideas provided by brokers. In April, youDevise introduced the TIM Sentiment Index, which measures overall bullish/bearish sentiment of all new and closed ideas sent via the TIM.
youDevise also released TIM statistics for July 2009:
- New open and closed ideas totaled 46,116, up 7% from June 2009.
- The percentage of new short ideas at 36.6% for July 2009 stayed in the mid 30's range, similar to May and June 2009, versus an average of 44% from July 2008 to April 2009.
- Total open and closed ideas in the TIM's database at June 30, 2009 were 654,040, up 5% from the preceding month and up 136% year over year.
- Total clients continued to climb, to 529, up 4% from June 2009 and up 44% from July 2008.
- The TIM has added 161 clients over the last 12 months, up 10% from the prior 12 months.