StockMood.com uses advanced artificial intelligence to analyze news stories, classify their sentiment, and then measure their potential impact on a stock's price direction. StockMood.com debuted on TechCrunch 50 2008, and we're now running a Beta. Signup for free early access!

Each article is individually ingested, and its sentiment assessed by natural language processing models. While the models aren't perfect, users can correct the sentiment rating produced by the system.

Mood measures how a stock’s price responds to news. When a stock is in a good Mood that means the stock price responds very favorably to good news, and has a tendency to shrug off the bad news. The opposite is true for bad Mood. The more this happens the stronger the mood in that direction gets.

When both the mood and the sentiment values for a stock reach certain empirically determined thresholds, a Sentiment Alert is issued, indicating a relatively high probability of movement over the next 5 days. Sentiment Alerts come in two flavors: High Optimism Alerts, and High Pessimism Alerts. These Alerts suggest that a stock may be at a peak of optimism or a peak of pessimism, respectively. Our statistical analyses have shown that, at the time of an High Optimism or High Pessimism Alert, trading in the opposite direction of the news can provide significant edge.

You can create your own portfolio of stocks and industries to track, and also look at the global sentiment alert page.