| Slang. a temporary recovery in stock prices after a steep decline, often resulting from the purchase of securities that have been sold short. |
Dead Cat Bounce
A temporary recovery from a prolonged decline or bear market, after which the market continues to fall.
Investopedia Commentary
Ever heard the saying, "Even a dead cat will bounce if dropped from high enough!"?
Related Links
Capitulation Defined
Digging Deeper Into Bull And Bear Markets
The Art Of Selling A Losing Position
See also: Bear Market, Bloodletting, Capitulation, Correction, Falling Knife, Flight to Quality, Panic Selling, Recession, Reversal, Trend
dead cat bounce