Dead cat bounce

[threaded]

The dead cat bounce is over, it's on its way down again.

[Churchill]

The dead cat bounce is over, it's on its way down again.

That'll be the "American Dream" turning to rattulip then, eh?

[n5gooner]

well thats how I took it...

[andy]

cat has 9 lives, it will bounce again

[rootsnall]

That'll be the "American Dream" turning to rattulip then, eh?

If ( when !? ) they go down the pan then we'll be following not long after. All the economies have been propped up on cheap credit since the dot com crash, it'll unravel at some stage.

[Buffoon]

The dead cat bounce is over, it's on its way down again.

Yeah, $INDU hasn't been this low since........... November last year.

[gingerjedi]

It hasn’t bounced because it needs to fall further and hit the bottom harder, it’s just hitting a few branches on the way down at the moment.

[churkus]

A dead cat bounce is a term used in market economics to describe a pattern wherein a moderate rise in the price of a stock follows a spectacular fall, with the connotation that the rise does not indicate improving circumstances. It is derived from the notion that "even a dead cat will bounce if it falls from a great height".

The phrase has been used on the trading floors for many years. However the earliest recorded use of the phrase dates from 1985 when the Singaporean and Malaysian stock markets bounced back after a hard fall during the recession of that year. The Financial Times reported a stock broker as saying the market rise was a 'dead cat bounce'.

The reasons for such a bounce can be technical - investors may have standing orders to buy shorted 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 the bounce was for technical or speculative reasons. If the stock remains steady, then the bounce is merely a correction to over-selling.







Well, I didnt know wtf it meant.

[Churchill]

A dead cat bounce is a term used in market economics to describe a pattern wherein a moderate rise in the price of a stock follows a spectacular fall, with the connotation that the rise does not indicate improving circumstances. It is derived from the notion that "even a dead cat will bounce if it falls from a great height".

The phrase has been used on the trading floors for many years. However the earliest recorded use of the phrase dates from 1985 when the Singaporean and Malaysian stock markets bounced back after a hard fall during the recession of that year. The Financial Times reported a stock broker as saying the market rise was a 'dead cat bounce'.

The reasons for such a bounce can be technical - investors may have standing orders to buy shorted 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 the bounce was for technical or speculative reasons. If the stock remains steady, then the bounce is merely a correction to over-selling.







Well, I didnt know wtf it meant.

That's alright, neither did Threaded.

Always remember churckus, people love you because you're big, fat and ugly.

[SallyAnne]

That's alright, neither did Threaded.

Always remember churckus, people love you [i]because[/b] you're big, fat and ugly.

Hmm - nice use of italic and bold there