Sunday, September 16, 2018

Thought#5 - Dead Cat Bounce

A dead cat bounce refers to the phenomenon of financial markets when we see a temporary recovery in a stock (or a crypto currency) price or see a temporary market rally after a significant downward trend.


For example, let's assume the market has been falling over the last ten weeks but there is a broad market rally in week 11. The rally is considered a dead cat bounce if it's short-lived and the market continues to fall again in week 12.

So does only the dead cat bounce, not dead dog or alive cat?!

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