How Daily Analysis Works: Your AI-Powered Portfolio Guide

Luna Capital’s Daily Analysis is your personalized AI analyst, ready to review your portfolio and provide actionable insights in seconds. This guide explains exactly how it works and how to get the most value from it.

What is the Daily Analysis?

Think of the Daily Analysis as having a professional analyst review your entire portfolio every day. It:

• Analyzes your complete portfolio - Every stock, every position
• Identifies opportunities - Stocks with strong analytical outlooks
• Highlights risks - Positions showing concerning signals
• Provides context - Market conditions and sector trends
• Generates recommendations - Personalized insights based on your holdings

All of this happens in 30-60 seconds, powered by advanced AI models.

How It Works: Step by Step

Step 1: Portfolio Snapshot

When you click “Run Daily Analysis,” the AI first takes a complete snapshot of your portfolio:

• Current positions and quantities
• Entry prices and current values
• Profit/loss for each holding
• Overall portfolio composition
• Sector allocation and diversification

Step 2: Market Data Collection

The AI gathers fresh market data for analysis:

• Latest stock prices - Real-time or near-real-time data
• Financial metrics - P/E ratios, market cap, growth rates
• Recent news - Company announcements and developments
• Sector trends - Industry performance and outlook
• Market sentiment - Overall market conditions

Step 3: Individual Stock Analysis

Each stock in your portfolio is analyzed across multiple dimensions:

Fundamental Analysis:

• Revenue and earnings trends
• Profitability margins
• Financial health (debt, cash flow)
• Valuation metrics vs. peers
• Growth trajectory

Technical Analysis:

• Price trends and momentum
• Support and resistance levels
• Volume patterns
• Relative strength

Sentiment Analysis:

• Recent news tone (positive, negative, neutral)
• Analyst sentiment
• Market buzz and attention
• Potential catalysts or risks

Risk Assessment:

• Volatility levels
• Drawdown potential
• Company-specific risks
• Sector and market risks

Step 4: Portfolio-Level Insights

The AI then analyzes your portfolio as a whole:

• Diversification quality - Are you spread across sectors?
• Risk concentration - Any positions too large?
• Correlation analysis - Do your stocks move together?
• Performance attribution - What’s driving returns?
• Opportunity gaps - Sectors or themes you’re missing

Step 5: Generating Recommendations

Based on all this analysis, the AI generates personalized insights:

Stock Outlooks:

• Strong: Multiple positive signals, favorable fundamentals
• Neutral: Mixed signals, fair valuation
• Weak: Concerning signals, potential risks

Action Items:

• Stocks to watch closely
• Potential trim candidates
• Diversification suggestions
• Risk mitigation ideas

Step 6: Presenting Results

Finally, everything is synthesized into a clear, actionable report:

• Summary of portfolio health
• Individual stock insights with outlooks
• Key opportunities identified
• Recommended actions (if any)
• Important alerts or warnings

Understanding Your Analysis Results

Analytical Outlooks Explained

Strong Outlook means:

• The AI identified multiple positive factors
• Fundamentals look favorable (good earnings, growth, valuation)
• Technical momentum is positive
• Sentiment is constructive
• Risk factors are manageable

What to do: Monitor the position. Consider if it aligns with your strategy. These are often good holdings to maintain or potentially add to if you have conviction and it fits your allocation.

Neutral Outlook means:

• Mixed signals across different factors
• Fair valuation with balanced risk/reward
• No strong bullish or bearish indicators
• Uncertainty about near-term direction

What to do: Continue holding if it’s part of your long-term strategy. These positions typically don’t require immediate action but should be monitored.

Weak Outlook means:

• The AI identified concerning signals
• Fundamentals may be deteriorating
• Technical momentum is negative
• Sentiment has turned negative
• Risk factors are elevated

What to do: Review the position carefully. Understand the specific concerns. Consider if the thesis has changed. This doesn’t automatically mean “sell” - use it as a prompt for deeper research.

Key Metrics to Watch

Your daily analysis includes important metrics:

Portfolio Metrics:

• Total value and day/all-time change
• Number of positions
• Sector breakdown
• Risk score
• Diversification rating

Stock Metrics:

• Current price and change
• Your cost basis and profit/loss
• Analytical outlook (Strong/Neutral/Weak)
• Key fundamental ratios
• Risk indicators

Best Practices: Getting Maximum Value

1. Run It Once Daily

Why daily?

• Markets change constantly - news, earnings, economic data
• Early detection of emerging risks or opportunities
• Stay informed without constant monitoring
• Build a routine of portfolio awareness

Best time to run:

• Morning (before market open): Plan your day with fresh insights
• After market close: Review what happened and adjust for tomorrow
• Consistency matters more than specific timing

Frequency limits:

• Free users: 2 analyses per day
• Premium users: Unlimited analyses
• Resets at midnight

2. Focus on Changes

The most valuable insights are often the changes from previous analyses:

• Did any stock’s outlook shift? (Strong → Neutral, Neutral → Weak)
• Are new risks emerging?
• Did fundamentals improve or deteriorate?
• What triggered the change?

These changes often indicate important developments worth investigating.

3. Don’t Overreact to Single Data Points

Remember:

• One Weak outlook doesn’t mean immediate selling
• Markets fluctuate - some volatility is normal
• Consider the bigger picture and your investment thesis
• Use insights as inputs, not commands

4. Combine with Your Own Research

The daily analysis is a powerful tool, but it works best when combined with your judgment:

• AI provides data and patterns - You provide context and goals
• AI identifies opportunities - You decide if they fit your strategy
• AI flags risks - You determine if they matter for your timeline
• AI offers insights - You make the final decisions

5. Track Patterns Over Time

Look for trends in your analyses over weeks and months:

• Are certain sectors consistently weak?
• Which stocks maintain strong outlooks?
• Is your overall portfolio health improving?
• Are you diversifying effectively?

Common Questions

“How often should I actually trade based on the analysis?”

Much less often than you run the analysis! The daily analysis is for awareness, not constant trading:

• Most investors: Review daily, act monthly (or less)
• Active investors: Review daily, act weekly
• Long-term investors: Review daily, act quarterly

The analysis helps you stay informed without feeling pressured to trade.

“What if all my stocks show Weak outlooks?”

This can happen during broader market selloffs. Consider:

• Is the overall market down significantly?
• Are fundamentals actually deteriorating, or just sentiment?
• Is this a buying opportunity or a genuine concern?
• Do you have cash reserves to stay patient?

Often, weak outlooks during market crashes are best opportunities for long-term investors.

“Should I sell immediately when I see a Weak outlook?”

No! A Weak outlook is a signal to investigate, not an automatic sell trigger:

1. Understand why the outlook is weak
2. Check if it’s temporary (news reaction) or structural (business deterioration)
3. Consider your original investment thesis
4. Evaluate if the risk/reward has fundamentally changed
5. Make a deliberate decision based on your strategy

“Can I trust the AI’s analysis?”

The AI is a powerful tool, but not infallible:

Strengths:

• Processes vast amounts of data quickly
• Identifies patterns across thousands of stocks
• Consistent, objective methodology
• No emotional bias

Limitations:

• Can’t predict unprecedented events
• Relies on available data (which can be incomplete)
• May miss nuanced qualitative factors
• Not a crystal ball - provides probabilities, not certainties

Use it as one input in your decision-making process.

Interpreting Specific Recommendations

“Consider Diversifying”

This appears when you’re concentrated:

• Too much in one stock (>10% of portfolio)
• Too much in one sector (>30% of portfolio)
• Too few total positions (<5 stocks)

Action: Review your allocation. Consider if concentration is intentional (high conviction) or accidental (drift).

“Monitor This Position Closely”

Triggered by:

• Recent shift from Strong to Neutral or Weak
• Elevated volatility
• Concerning news or developments
• Technical breakdown

Action: Set alerts, read recent news, review the investment thesis.

“Strong Opportunity Identified”

The AI found stocks with:

• Strong fundamental momentum
• Positive sentiment
• Technical strength
• Attractive valuation

Action: Research these opportunities. Do they fit your strategy? Do you have capital to deploy?

Making It a Habit

Build a Daily Routine

Step 1 (2 minutes): Run the analysis

• Click “Run Daily Analysis”
• Wait 30-60 seconds
• Review the summary

Step 2 (3-5 minutes): Quick review

• Scan for outlook changes
• Note any alerts or warnings
• Check overall portfolio metrics

Step 3 (Variable): Deep dive when needed

• If something significant changed, investigate
• Research stocks with shifted outlooks
• Read relevant news or filings
• Consider if action is needed

Total time: 5-7 minutes daily, with occasional deeper dives

Pair with Other Resources

Maximize value by combining daily analysis with:

• AI Chatbot: Ask follow-up questions about specific insights
• Discover Page: Find opportunities to improve diversification
• Stock Detail Pages: Deep dive into concerning positions
• Learn Section: Build knowledge on concepts you don’t understand

Advanced Tips

Compare Week-Over-Week

Look at how your portfolio analysis changes over time:

• Are strong outlooks increasing or decreasing?
• Is overall risk trending up or down?
• How has diversification improved?

Use It for Accountability

The daily analysis helps you stick to your strategy:

• Confirms you’re maintaining target allocations
• Highlights when emotions might be driving decisions
• Keeps you aware without constant price checking

Learn from Outcomes

Track analysis predictions vs. actual results:

• Did stocks with Strong outlooks tend to perform well?
• Were Weak outlook warnings accurate?
• What factors were most predictive?

This helps you calibrate how much weight to give different signals.

Conclusion

Luna Capital’s Daily Analysis is designed to give you institutional-quality portfolio insights in the time it takes to make coffee. By running it daily, you:

• Stay informed without constant monitoring
• Catch risks early before they become major problems
• Identify opportunities you might otherwise miss
• Maintain perspective with objective, data-driven insights
• Build discipline through regular portfolio awareness

The key is consistency. Make it part of your daily routine, but remember: the analysis is a tool for awareness, not a trigger for constant trading. Use it to stay informed, spot important changes, and make better decisions—all while maintaining the patience and discipline that drive long-term investment success.

Ready to get started? Head to your Luna Capital portfolio and click “Run Daily Analysis” to see what insights await.

Pro tip: Run your first analysis in the morning, then check back before market close to see how the day’s movements affected your outlook. This gives you a complete picture of your portfolio’s daily narrative.