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dead_reggin_storage_fashi
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A dead cat bounce is a pattern where a modrate rise in the price of a stock follows a spectacular fall with the connotation that the rise does not indicate improving circumstances. It is taken from the notion that "even a dead cat will bounce if it falls from a great height".
The reasons for such a bounce can be technical investors may have standing orders to buy shorted shit stocks if they fall below a certain level, to cover certain option positions, or for speculation. Since bounces often occur, investors buy into what they hope is the bottom of the market, expecting a bounce and thus make a quick profit. The very act of anticipating a bounce can create and magnify it.
A market rise after a sharp fall can only really be seen to be a "dead cat bounce" with the benefit of hindsight. If the stocks starts to fall again in the following days and weeks, then it is a true dead cat bounce. If the market picks up starts to climb again, it was not a bounce but a bottom
My latest picks are the new Visa IPO in the US.
The reasons for such a bounce can be technical investors may have standing orders to buy shorted shit stocks if they fall below a certain level, to cover certain option positions, or for speculation. Since bounces often occur, investors buy into what they hope is the bottom of the market, expecting a bounce and thus make a quick profit. The very act of anticipating a bounce can create and magnify it.
A market rise after a sharp fall can only really be seen to be a "dead cat bounce" with the benefit of hindsight. If the stocks starts to fall again in the following days and weeks, then it is a true dead cat bounce. If the market picks up starts to climb again, it was not a bounce but a bottom
My latest picks are the new Visa IPO in the US.
