Oct
10
Dead Cat Bounce
Filed Under Stock Market
In general, I hate buzz words…
Why? If you’re not careful buzz words can turn you into a … sheep!
The media spoon feeds Joe & Jane Public [read sheep] a steady diet of buzz words to so they can understand AND sound like they have an educated opinion when they’re talking to friends. [Read the news media sucks - and will turn you into a sheep]
Remember these popular buzz words?
- “Flip flopper”
- “Top Grading” or “Right Sizing” – Anyone who’s been Right Sized knows that it doesn’t feel very “Right”
- “Free Market” - OK, now I’m just cheeky. BUT in light of the US market printing money to ‘bail out’ their “Free Market” I think most rational people would agree with me.
- “Soft Landing” - I love that one - It was pure BS the moment it was uttered.
But as a “Panic Profiteer” I love to hear the words “Dead Cat Bounce.” It’s music to my ears - especially when it means I’m profiting. (This doesn’t win me friends or excite immediate family)
What’s a Dead Cat Bounce?
Definition: A dead cat bounce is a term used by traders in the finance industry to describe a pattern wherein a spectacular decline in the price of a stock is immediately followed by a moderate and temporary rise before resuming its downward movement, with the connotation that the rise was not an indication of improving circumstances in the fundamentals of the stock. It is derived from the notion that “even a dead cat will bounce if it falls from a great height”.
What does a Dead Cat Bounce look like?
Stock Market Crash Correction October 10, 2008
My Prediction For What’s Next?
My prediction is there will be a ‘bounce’ for a few days to 2 weeks at most…
BUT this is just a ‘rest area’ on the way to the bottom and I’m positioned to profit from the panic.
Waiting to read about what happened to your retirement plan in the sheep news? Are you waiting for some sort of sign to fall out of the sky? Are you going to follow the rest of the sheep right off the cliff?
Comments
Leave a Reply