Dr. Feelgood Shorter Therapist: The doctor is in session with shorter Bob who is crying on the couch.
Lets listen in.
Doctor: Oh Bob which one was it this time?
Short Bob: {cries out} A WEED STOCK!
Doctor: How much did you lose?
Short Bob: {whimpering} two hundred fifty dollars
Doctor: Now Bob!
Short Bob: {crying Louder) five hundred dollars
Doctor: Now Bob, How much did you really lose?
Short Bob: {crying hysterically yells out} OK ONE THOUSAND DOLLARS!
Doctor: What happened?
Short Bob: I was set up. I was doing fine,playing the 15 to 18 with $300 made me 45 on a good day.
so I played the big G on 14 and it's never made it back. {Bob starting to cry again yells out.}
I WAS SET UP, {In a mobster tone} I was set up I tell ya !
Doctor: What is the price now ?
Short Bob: {nervously} it's around thirteen or something
Doctor: Now Bob
Short bob: {crying again} 11 or twelve ish
Doctor: Now Bob what's the real price?
Short Bob: {hysterically yells out} OK it's .10
Short Bob: {In a desperate tone and face to face with sweat beads running down.
It's that Black Cat that showed up on the 6 month chart. Around May 10th to June 1st.
That black cat with it's spooky perfect ears, humped back looking right at me.
That Darn Cat look how long the tail is, What does it mean Doc ?
Doctor: Hmm , I researched the need for weed and your stock seems to be at the forefront of the need for weed creed. Have you every heard the old Singaporan saying::
Even a dead cat will bounce if it falls hard enough.
Short Bob: Thanks Doc I feel better now. The cat is going to face the other way some day
Doctor: Where are you going now Bob?
Bob: To the Casino
History: from Wiki
Dead cat bounce is a Wall Street term that refers to a small, brief recovery in the price of a declining stock.[1]
Contents
[hide]
1 History
2 Variations and usage
2.1 Technical analysis
2.2 Alternate meanings
3 See also
4 References
5 External links
[edit] History
The term "dead cat bounce" is derived from the idea that "even a dead cat will bounce if it falls from a great height".[2] The phrase has been used on Wall Street for many years. The earliest 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. Journalist Christopher Sherwell of the Financial Times reported a stock broker as saying the market rise was a "dead cat bounce".
[edit] Variations and usage
A short rise in price followed by a price decline of a stock is the standard usage of the term. In other instances the term is used exclusively to refer to securities or stocks that are considered to be of low value. First, the securities have poor past performance. Second, there is no indication of an impending rise in price. Lastly, there is no indication that sustained growth is imminent should a major upward shift occur in the market.[2]
Some variations on the definition of the term include:
A stock in a severe decline has a sharp bounce off the lows.[3]
A small upward price movement in a bear market after which the market continues to fall.[4][5][6]
[edit] Technical analysis
A "dead cat bounce" price pattern may be considered part of the technical analysis method of stock trading. Price patterns such as the dead cat bounce are recognized only in hindsight. Technical analysis describes a dead cat bounce as a continuation pattern that looks in the beginning like a reversal pattern. It begins with a downward move followed by a significant price retracement. The price fails to continue upward and instead falls again downwards, and exceeds the prior low.[7]
