03-26-2020, 01:44 AM
throw cat theme
Ever hear of a "dead cat bounce?"
Dead cat bounce
My guess is don't bet the ranch on the stock market rallying for very long on the stimulus hopes.
Ever hear of a "dead cat bounce?"
Dead cat bounce
Quote:What Does a Dead Cat Bounce Tell You?
A dead cat bounce is a price pattern used by technical analysts. It is considered a continuation pattern, where at first the bounce may appear to be a reversal of the prevailing trend, but it is quickly followed by a continuation of the downward price move. It becomes a dead cat bounce (and not a reversal) after price drops below its prior low. Short-term traders may attempt to profit from the small rally, and traders and investors may try to use the temporary reversal as a good opportunity to initiate a short position.
My guess is don't bet the ranch on the stock market rallying for very long on the stimulus hopes.