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  • 12.13.16

Traders are creating algorithms for Trump’s tweets, so that they can make money when stocks react

Hours after President-elect Donald Trump tweeted a tough comment about defense giant Lockheed Martin on Monday morning, its stock had fallen off a cliff, erasing $4 billion off the company’s market value. The same pattern was evident last Tuesday when he attacked Boeing‘s Air Force One contract in a tweet, its shares tumbled (though they recovered by the end of the afternoon). Trump’s ability to move shares is attracting plenty of attention from the quants on Wall Street, who are creating algorithms to take monetary advantage of his tweets, reports Politico.

“There are people diligently working to create algorithms for Trump’s tweets, and if he continues to increase the size of the data set then we’ll likely see full automation sooner than later,” Zachary David, a senior analyst at KOR Group, a consulting firm, told Politico. And when it comes to the Lockheed Martin tweet, some traders seemed to already know what was about to happen:

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