Ratings

AI Stock Ratings: How MarketMoodz Scores the Mood of 2,325 Stocks

A useful stock rating should tell you one honest thing. Ours tells you how the market feels about a stock — because when we backtested our own history, fear was the thing our model measured best.

Updated June 12, 2026 8 min read

Most investors do not have an information problem. They have a filtering problem. A single ticker can generate filings, earnings transcripts, analyst notes, price gaps, social sentiment, sector moves, and macro crosscurrents before the opening bell. The hard part is not finding data. The hard part is deciding which pieces deserve attention today.

MarketMoodz answers that with one number. Every trading day, 2,325 stocks get a Mood Score from 0 to 100 — greed at the top, fear at the bottom. The score is not an oracle, a trade instruction, or a substitute for due diligence. It is a daily measurement of how the market is treating a stock, with the context attached to judge whether that treatment is deserved.

Key Takeaways

  • The Mood Score rates 2,325 stocks daily, 0–100, from Overbought (greed) down to Strong Oversold (fear).
  • The scale describes; it doesn't command. One label commits: Strong Buy — rare, and earned only by deep-Oversold names that clear every additional check.
  • We relabeled the scale after backtesting our own history: the bottom band — the stocks the market feared most — was the standout cohort.
  • The trust layer is the public audit: every call timestamped, graded against SPY, misses included.

Why Our Buy Zone Is Red

MarketMoodz ratings used to read the way everyone's do: Strong Buy at the top, Sell at the bottom. Then we backtested our own signal history — every score, every outcome. The cohort that stood out wasn't the polished, popular, high-score names. It was the bottom band: the stocks the market was most afraid of.

Fear, it turns out, is what the model was actually good at measuring. So we relabeled the scale to say what it really is. Overbought (roughly 60–100) means the crowd is greedy — names priced for applause. Neutral (40–60) means the mood matches the facts. Oversold and Strong Oversold (0–40) mean fear is running the price — and that's where the daily Board hunts, because fear sometimes runs ahead of the facts.

One label survived the relabel: Strong Buy. It's the only action word in the system, reserved for the rare names off the deep end of the Board that clear every additional check — risk, confidence, sector. On a typical day that's about five names out of 2,325. The pyramid is the whole method in one line: 2,325 scored → a few hundred in deep fear → a handful earn the verdict.

The Inputs Behind the Score

The Mood Score combines several types of evidence rather than leaning on a single signal. Each input is useful; each can also mislead on its own — which is why the score is a composite and why every name carries risk notes beside it.

  • SEC filings and disclosures: business changes, risk language, capital allocation, insider activity, balance-sheet shifts — the details that don't always surface cleanly in headlines.
  • Institutional money flow: changes in relative buying and selling pressure, often visible before the narrative catches up.
  • Technical context: trend, momentum, volatility, relative strength — is the selling accelerating, or exhausting itself?
  • News and social sentiment: sentiment isn't truth, but it is the rawest read on crowd fear and greed — the thing the score exists to measure.
  • Sector and market regime: a stock-specific panic and a sector-wide one are different situations. The score is read against its sector's mood.

What a Score Like 24 Actually Means

A 24 puts a stock in the Strong Oversold band — the market hates it. That is a description, not advice. The useful question is the one the risk context answers: is this fear overdone (the sector's fine, the risk is contained, the slide has stopped accelerating) or deserved (the risk is elevated, the score is still falling, the sector is sinking with it)?

By eye, a washed-out 24 and a broken 24 look identical on a chart. On the platform they don't, because the risk notes, confidence, and score history sit next to the number. That separation — discount versus disaster — is the only skill that matters when you buy red, and it's the job the whole system is built around.

What Makes a Rating Trustworthy

Trust comes from process, not polish. A rating system asking for your attention should answer basic questions in public:

  • When was the call made? (Timestamped at entry, not after it worked.)
  • What happened next, against SPY over the same window?
  • Are the misses on the same table as the wins?
  • Can the record be edited after the fact? (It can't — results post on a 14-day delay.)

That is the public audit. It doesn't make every rating right; it makes the system accountable, which is the minimum standard for any research tool asking investors to pay for it.

How to Use the Score in a Morning Routine

A simple loop is best: check the market's mood gauge, scan the Strong Oversold board, open the risk context on anything that interests you, and note whether a Strong Buy fired. Two minutes, then back to your day. The right mental model is "shortlist, inspect, decide." The score builds the shortlist; you own the inspection and the decision.

Related MarketMoodz Guides

Run the same logic by hand with the Dip Buyer's Checklist, then read why every pick should be audited against SPY and how to structure a morning briefing.

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This article is for informational purposes only and is not investment, financial, tax, or legal advice. Ratings and research outputs can be wrong, incomplete, or stale. Past performance does not guarantee future results. Always do your own research and consider consulting a qualified professional.