Thursday January 21, 2016
The uptick in futures this morning after the collapses of this week suggest we hit a near term low and will bounce next week to the upside.
But I suspect that is all it will be giving an opportunity to add to short positions looking for a further fall into February.
We write a good deal about how social mood moves prices. Today Cullen Frost finally raised its loan loss provision from $6.8 million
to $34 million. The shares have fallen 25% just this month. The shares dropped from the high 70s to $44.85 yesterday. The stock has been downgraded by various agencies.But
long term investments (loans) are $22.3 billion! so an increase of $27 million in loss reserves is about one percent of total assets but look how the market punished the stock!
Social mood activates social actions, not the other way around.
A return to the sentiment of August 24
Bullish percent over 50 day MA is a mere 9% a return to the negative sentiment of the August 24 lows.
Look for a rally starting now and leading into next week.
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