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As you can see on https://twitter.com/powtac/status/277190821479063552, strings with four letters starting with an $ are marked as a Tag on twitter. But what kind of tags are those $TAGS?

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Completely off topic: there is a "dollar tag sign" UTF-8 symbol: fileformat.info/info/unicode/char/e0024/index.htm –  powtac Dec 7 '12 at 23:27
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up vote 11 down vote accepted

That's part of the stock exchange search feature. Or "cashtags".

When you include a dollar sign followed by the stock ID it will take you to a search page that shows you related Tweets about the company for that ticker symbol.

Now you can click on ticker symbols like $GE on http://twitter.com to see search results about stocks and companies

@twitter

Since there are a lot of the stock exchange identifiers with four characters, that's why you're seeing it appear auto-linked in your Tweets.

Normal currency and dollar amounts don't contain letters like that in that position and is also why that convention was adopted by Twitter.

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