Dead Cat Bounce

Fancy Way to Say: 'Fake' Rally When a security has declined far and fast it will inevitably stage a small rally. If the rally is of the dead cat bounce variety, it is only a breather before continuing the decline. Dead cat bounces will attract some buyers who believe the worst is over. These bottom pickers will often feel pain as the decline resumes. Think about it. Drop a dead cat from a height and it will bounce. But only so high before it turns around and goes guess where?

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