US economic problems not over, sell the ‘dead cat bounce’ « Peter J. Cooper’s Weblog

by arabianmoney | May 2, 2008 at 10:04 pm
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US economic problems not over, sell the ‘dead cat bounce’ « Peter J. Cooper’s Weblog

US economic problems not over, sell the ‘dead cat bounce’ « Peter J. Cooper’s Weblog

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This is trader terminology for something that happens in a very bad downturn. Eventually things get so bad that they recover just a little, leading to flood of false optimism about the future, partly from traders who want to use the bounce to clear their books. It is like a cat falling off a building. It will bounce upwards on impact but still be dead.

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