2006-06-22 08:34:59 · 4 answers · asked by Yardbird 5 in Business & Finance ➔ Investing
It's from Jason Kelly's book NEATEST LITTLE GUIDE TO THE STOCK MARKET. Some kind of technical analysis chart thingy.
2006-06-22 09:10:30 · update #1
dead cat bounce is a term for this situation:stock headed downward, and then appears to reverse the trend as it starts moving up, however, after a short rally upward on the chart, it keeps going lower, the expression is basically saying that even a dead cat will bounce a little if you throw it down hard enough!
2006-06-22 09:39:22 · answer #1 · answered by josh g 1 · 1⤊ 1⤋
Usually it is short covering causing a weak rally after a hard decline in prices, not new investing that will last.
Look in a Wall Street Journal or IBD or look on Yahoo at a daily chart of the Dow. You've already witnessed a "dead cat bounce."
The Dow topped out on May 20th, then declined straight down 500 pts into May 24th. That was the first leg down, and anyone that has studied Technical Analysis knew that the rally of 200 pts on the 25th and 26th was not something you invest in for the long term, or even trade on the long side unless you are nimble, because it was only a Dead Cat Bounce. Witness the 180 pt down day on the following Monday or Tuesday of May 30th. Lots of people got short that day, only to be reversed for two more days of a bounce before the decline got underway again in earnest.
That is a texbook example, technically, of what you ask.
2006-06-22 11:14:29 · answer #2 · answered by dredude52 6 · 0⤊ 0⤋
trampoline works great!
2006-06-22 08:40:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
what is wrong with you, you sicko!
2006-06-22 08:38:18 · answer #4 · answered by DDD 1 · 0⤊ 0⤋