What does it mean when a dead cat bounces?

a dead cat bounce. a misleading sign of vitality in something that is really moribund. A dead cat might bounce if it is dropped from a great height: the fact of it bouncing does not reliably indicate that the cat is alive after all.

How do you know if a stock has a dead cat bounce?

One way to stay alert for a dead cat bounce with a particular stock is to consider whether the now-rising stock is still as weak as it was when its price was falling. If there’s no market indicator as to why the stock is rebounding, it might make sense to suspect a dead cat bounce. Dead Cat Bounce or Lowest Price?

Is a dead cat bounce a good investment?

Given their investment style, a dead cat bounce can be a great money-making opportunity for these traders. But this style of trading takes a great deal of dedication, skill in reacting to short-term movements, and risk tolerance.

What is a dead cat?

n. a small, knee-jerk rally in one of the financial markets. (A dead cat—or any other animal—will bounce only slightly after being dropped. Refers to a stock index or security price that bounces up only slightly after a precipitous fall.