Indicator Guide & Glossary

Stock Companion utilizes specialized artificial intelligence models to analyze incoming market feeds:

1. The sentiment gauge reads every headline with state-of-the-art AI models trained specifically on financial data. While general-purpose AI models get confused by terms like "bullish sentiment", "leverage", or "volatile returns", these are fine-tuned to capture market nuance, achieving over 95% accuracy in detecting investor sentiment.
2. A single AI model: a lexical, rule-based model built for short texts, which scores the headlines in a free account's dashboard news feed.

Serving as a real-time news sentiment radar and sentiment news radar, our backend collects headlines through the day, scores each one with state-of-the-art AI models trained specifically on financial data, and averages the recent readings into one whole number from 0 (most negative) to 100 (most positive), where 50 is neutral. This sentiment tracker radar is shown as the sentiment radar reading beside every stock, with a word such as slightly bullish or bearish, to help you read the news before you make your own decisions.

Sector rotation is the movement of investment capital from one industry sector to another as the economic cycle progresses. For instance, during early recovery, capital flows into technology and consumer discretionary stocks. During downturns, it shifts to defensive sectors like Utilities and Consumer Staples.

Stock Companion's Sector & Trends dashboard acts as a global stock news radar and real-time sentiment radar feed for macro trends, tracking all 11 market sectors in real-time:

• Relative Performance Index: Compares the cumulative monthly growth of each sector's core ETFs normalizing them from 0%.
• Technical Health Score: Automatically computes simple moving averages (SMA-20/50) and momentum oscillators (RSI-14, MACD) across all stocks within each sector.

By observing when the line of a defensive sector (like Utilities) starts crossing above cyclical sectors (like Technology), smart investors can anticipate broader market shifts, protect their portfolio profits, and make stock buy/sell decisions with ease.

Backtesting is the process of testing a trading strategy or predictive signal using historical market data to see how it would have performed.

Stock Companion includes a free 12-month strategy backtest for any stock, on every stock page and at /backtest. It replays the AI signal one daily close at a time and shows:

• Every BUY and SELL: the date, the closing price, the signal's reasons that day, and the headlines it read before that close, the same ones the live signal would have read.
• What happened next: each round trip's return, and after each SELL whether the price fell (a loss avoided) or rose (a gain missed).
• The comparison that matters: $10,000 following the signal against the same $10,000 simply held, shown whichever came out ahead.

Read it as a way to learn how the signal behaves on a stock, not as a forecast: a backtest cannot know the conditions that will apply next, and past results do not predict future returns.