dead-cat bouncedead·-cat· bounce
Origin of dead-cat bouncefrom the notion that even a dead cat would bounce a little if it were dropped from a great height
- A short-lived rally near the bottom of an otherwise persistent decline in the market price of a stock, often caused by investors covering short positions.
- An auspicious but ultimately short-lived improvement in an otherwise unfavorable trend.
(plural dead cat bounces)
- (trading) A temporary recovery in the price of an instrument whose price has fallen rapidly and is expected to fall further in the long run.
dead-cat bounce - Investment & Finance Definition
- A quick, but modest, upward movement in a market that previously traded lower.
- A term that is used by traders to indicate that they don’t expect a stock’s upward price movement to last.