What Is a Dead Cat Bounce?
A dead cat bounce is a brief recovery in a falling market that quickly fails. It tricks investors into
thinking the bottom is in.
1
A false dawn
Price bounces, tempting buyers, then rolls over.
2
Why it happens
Short covering and bargain-hunting, not a real turn.
3
The lesson
One green day in a downtrend is not the bottom.
Source: CFGI
Stocks