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Defining the dead cat bounce

In fact it’s not as easy as it may seem at first light because there are several different ways in which the famous Abby Cohen coined dead cat bounce can materialize, with percentage fluctuations, timescales etc all subject to personal interpretation. But one that captures just about every aspect could join together the following criteria
1) A popular, well-followed stock that..
2)…hits a serious roadbump, for example…
3) …a piece of news that disappoints an unsuspecting market and…
4) …sells off sharply on big volume but then…
5) …rebounds the next day, particularly if…
6)…the badly hit company releases news that tries to counter the bad stuff of the previous day, and then…
7) …opens really well, but later that same day the fade sets in.
Now that’s what I’d call a classic, dyed-in-the-wool, hey-look-at-that Dead Cat Bounce.
Oh, talking of which:

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