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Dead cat bounce

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    Dead cat bounce

    The dead cat bounce is over, it's on its way down again.
    Insanity: repeating the same actions, but expecting different results.
    threadeds website, and here's my blog.

    #2
    Originally posted by threaded
    The dead cat bounce is over, it's on its way down again.
    That'll be the "American Dream" turning to rattulip then, eh?

    Comment


      #3
      well thats how I took it...
      SA says;
      Well you looked so stylish I thought you batted for the other camp - thats like the ultimate compliment!

      I couldn't imagine you ever having a hair out of place!

      n5gooner is awarded +5 Xeno Geek Points.
      (whatever these are)

      Comment


        #4
        cat has 9 lives, it will bounce again

        Comment


          #5
          Originally posted by Churchill
          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.

          Comment


            #6
            Originally posted by threaded
            The dead cat bounce is over, it's on its way down again.
            Yeah, $INDU hasn't been this low since........... November last year.

            Drivel is my speciality

            Comment


              #7
              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.
              Science isn't about why, it's about why not. You ask: why is so much of our science dangerous? I say: why not marry safe science if you love it so much. In fact, why not invent a special safety door that won't hit you in the butt on the way out, because you are fired. - Cave Johnson

              Comment


                #8
                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.

                Comment


                  #9
                  Originally posted by 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.
                  That's alright, neither did Threaded.

                  Always remember churckus, people love you because you're big, fat and ugly.
                  Last edited by Churchill; 15 March 2007, 07:34.

                  Comment


                    #10
                    Originally posted by Churchill
                    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
                    The pope is a tard.

                    Comment

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