MarketReader vs. AI Powered Search

If a stock is moving and you want to know why, there isn’t currently a solution that will give you a detailed answer quickly — not even the newest AI-enabled search tools. 

Although AI-powered search engines like ChatGPT claim to “reinvent search” with more personalized and efficient results, they lack the scope, timeliness, and fine-tuning required to adequately explain movements in financial markets. 

What is the explanation? AI search engines are tuned to deliver the most user-friendly output in response to nearly every possible search query, not for understanding market dynamics. They can easily search for a recipe or schedule a calendar event. But they come up short when asked why a certain stock price is fluctuating, given the complexity involved and the dynamic nature of markets. 

MarketReader overcomes this shortfall by searching for every possible explanation of a market movement across multiple dimensions of potential volatility drivers. The power of structured financial data and modeling (that meet the standards of the world’s most sophisticated investors) should not be underestimated. The result is finely-tuned output that concisely explains often complex market price and volume volatility. 

In other words, MarketReader is designed solely to explain why the market is moving in real time, not act as a personal assistant.

Block Inc – March 23, 2023

Block Inc (SQ) stock began moving significantly in the premarket on Thursday, March 23, 2023.

MarketReader’s system not only automatically identified the price move the moment it began, it instantly returned a simple, concise explanation consisting of key information compiled from various high-quality sources:

Silicon Valley Bank SIVB March 9

“Block Inc’s stock price has dropped by 19.6% since the previous close and an additional 3.6% in just the last ten minutes, possibly due to allegations that it’s subsidiary Square facilitated fraud and exploited customers through fake accounts according to Hindenburg Research on Block SQ. Additionally, a short seller report from Hindenburg caused a significant drop in pre-market trading for Block’s stock as well as related company PayPal seeing minor decline.”

By contrast, if an investor were to ask a leading AI-enabled search engine why the stock was moving, it would simply pull information from a news article and provide contextual information on the Nasdaq Composite Index. This response lacks the clarity and detail needed to fully understand why the stock price was moving at the moment.

Silicon Valley Bank SIVB March 9

 

MarketReader vs. AI Search: Key Differences

Compared to mass-market AI-powered search tools, MarketReader fills a very specific gap in the modern investor’s toolkit: explaining why the market is moving in real time. 

There are a few key differences between MarketReader and other GPT-adjacent tools:

Scope
If there is any possible reason why a stock is moving in a given moment, MarketReader automatically analyzes it with the thoroughness and complexity expected by professional investors. We simultaneously process social media, news, calendar and macro events, price volume and flow data, and proprietary financial modeling to deliver the most thorough, accurate explanation for why an asset is moving. 

Timeliness
Unlike search engines, which often link to long-form news articles that are published hours after the market moves, MarketReader uses high-frequency information sources that can explain a price move within seconds, not minutes or hours. 

Access to High-Quality Financial Information
A simple internet search will not yield the level of high-quality financial information used by most professionals to understand market moves. Simply put, there is a “pay wall” around valuable financial data, which makes it inaccessible to the average investor. MarketReader accesses this information from various sources and incorporates it into real-time explanations, resulting in robust, professional-grade output. 

Purpose-Built
MarketReader was built by a team of experts with decades of institutional financial experience for the sole purpose of explaining why the market is moving as quickly and accurately as possible. MarketReader CEO Jens Nordvig has over 20 years of experience in the finance industry working at Goldman Sachs, Nomura, and Bridgewater. Our system is finely tuned, using proprietary machine learning and financial modeling processes, to deliver financial market explanations and nothing else. 

Strengths of AI

All this to say, MarketReader does employ AI technology, like ChatGPT, to translate our real-time market explanations into conversational, “human-sounding” output that is easier for the average investor to understand. 

As stated in our previous blog post, “ChatGPT is a blunt instrument, but it can be made much more precise.” 

This approach yields all of the benefits of current state-of-the-art AI technology with none of the drawbacks.

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