11/3/2025 10:21
Cullen Frost bank CFR had net income of $172.7 million for the third quarter. That is a nice jump form the second quarter when the bank made only $144 million. This result outpaced the expectations of analysts! So the stock price must be going up, right! Uh not so fast. The report linked above was released Oct 30, the red arrow on the charts highlights the date. The stock rose to the 200 bar moving average, 30 minute chart, and has fallen since.
Welcome to the Socionomic Theory of Finance. Causality is not always what onethinks. Why did the stock fall in light of such great news. The answer is that despite what finance theory states, markets move on social mod. CFR has had a great run, but the short term trend is down. Since Oct 16 the 200 bar MA has contained all the rise in the stock price. Mood is changing towards CFR.
In the forthcoming bear market, do not believe that just because your company's stock is making money, it cannot go down. No doubt CFR shareholders are scratching their heads.
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