Truist Financial shows bearish signals with the stock up 6.1% and short interest down 8%. Historically, this pattern predicts a sell-off post-earnings. Our past forecast was accurate, and this divergence between stock and short interest strengthens the signal.

In TFC there are two separates statistically relationships around earnings.

The stock tends to revert, trading down after earning if the stock is up before. In this case the stock is up 6.1%.

At the same time the change in short interest is also predictive and it is down 8% this week which historically corresponds to a negative return.

These two patterns are independent and additive.

We made this bearish recommendation last quarter and the stock sold off 3.5%. The stock was also up then.

TFC moves only 2% on earnings so the expected move down is large compared to this number so the signal in this sense is strong, from a risk/reward point of view.

TFC stock and short interest have been correlated recently but have diverged only recently with the stock up and the short interest down. These are both bullish sentiments which historically reverse.

We made this bearish recommendation last quarter and the stock sold off 3.5%. The stock was also up then.

KRE is also up with short interest down its across the whole industry.

PNC Financial (PNC) and M&T Bank (MTB) reported today and were down but there was mo potential for a forecast.

Regions Financial (RF) and Huntington Bancshares (HBAN) report tomorrow, they are up as is the short interest but do not have a forecast.

Only TFC this time had a forecast but last time they all did.

TFC's current setup combines historical stock reversion post-earnings and declining short interest as indicators of potential downside. Both patterns independently and collectively reinforce a bearish outlook, offering a strong risk/reward opportunity. Past accuracy adds confidence to this analysis.

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