Take other instructions from bouncing cat!
However, a phenomenon unique to certain bear markets, including the one described above, is the occurrence of a dead cat bounce. After declining for six weeks in a row, the market showed a strong rally. The in particular posted gains of 7.78% after a disappointing string of losses. However, these gains were short-lived and the major continued their downward march. This chart illustrates just where the cat bounced, how high it bounced and then how far it continued to fall.
Nursing his hugely swollen leg, Detective Inspector Bliss of the Metropolitan Police sat in the dark, damp pit waiting for Armageddon and wondering what had happened to his life. "At my age I thought I would have everything sorted," he mused, speculating on the speed his life had free-fallen since Sarah had let go. And, although Margaret hadn't exactly picked him up, she had certainly given him cause to rebound. Some rebound, he thought, surveying his gloomy circumstances. I suppose they would call this a dead-cat bounce, he thought, wondering who "they" might be. He also wondered how his old cat was faring without him[.]
The dead-cat bounce is the name of this event pattern. Price makes a dramatic drop, averaging 30%, before bouncing only to resume the decline at a more leisurely rate.A market rise after a sharp fall can only really be seen to be a "dead cat bounce" with the benefit of hindsight, although market professionals typically treat such sudden reversals with suspicion. If the asset starts to fall again in the following days and weeks to new lows, then it can be characterized as a true dead cat bounce. If the market starts to climb again after the first short bounce, then the continued rise in price action would be considered a trend reversal and not a dead cat bounce. Since this distinction only becomes obvious in hindsight, the evaluation may vary depending upon the initial and final points of reference.A 'dead cat bounce' is a figurative term used by financial traders to describe a temporary rally after a spectacular decline in the price of an asset, before resuming its downward trajectory, with the connotation that the rise was purely technical rather than based on sound fundamentals for the asset in question. It is often expressed on trading floors as the observation that "even a dead cat will bounce if it falls from a great height".This is a "dead cat bounce". The bounce in the stock is due to short-sellers covering, and possibly existing shareholders in the company doubling-down on their positions. There is absolutely no fundamental reason for the stock to trade from $1.20 to $2.20, hence the term, "dead cat bounce".If a stock trades from $20 to $2 over the course of a few days, then a quick move up to $3 would likely be described as a "dead cat bounce". The stock may enjoy a temporary "bounce" due to the covering of outstanding short orders and potential bargain-hunters swooping in to buy shares, but there might not be any real fundamental improvements in the underlying company.I recently discovered a site that allows you to take any gif and turn it into a "gif party" by duplicating it over and over and over again. I was immediately excited to try and made one of my own with an adorable bouncing cat gif I found online. I thought this would be a fun thing to bring into Scratch!