This is something very common in stocks. In a bear market it is called a “dead cat bounce”. Most probably it will go back to keep falling in a few days, if not tomorrow, unless the trend changes which would be very surprising to me.
A sudden, sharp decline is also called a ‘falling knife’, particularly due to how it looks in a box plot, somewhat resembling a bloody dagger.
So… when the market in general tries to ‘catch’ a ‘falling knife’… this produces a ‘dead cat bounce’ if the market at least temporarily makes the price actually rebound a bit.
So… to … mix terminology… I guess you catch a falling knife by bouncing a cat off the floor, which goes upward, catches the knife, kills the cat, and then the dead cat with the knife in it collapses through the broken floor.
This is something very common in stocks. In a bear market it is called a “dead cat bounce”. Most probably it will go back to keep falling in a few days, if not tomorrow, unless the trend changes which would be very surprising to me.
A sudden, sharp decline is also called a ‘falling knife’, particularly due to how it looks in a box plot, somewhat resembling a bloody dagger.
So… when the market in general tries to ‘catch’ a ‘falling knife’… this produces a ‘dead cat bounce’ if the market at least temporarily makes the price actually rebound a bit.
So… to … mix terminology… I guess you catch a falling knife by bouncing a cat off the floor, which goes upward, catches the knife, kills the cat, and then the dead cat with the knife in it collapses through the broken floor.
Hooray daytrader terminology.
Because everything will bounce if you slam it down hard enough. Not the nicest term though
At some point it becomes more of a splatter tho, depending on momentum.
I don’t think this ‘term’ exists, but I hereby propose we call a downward, stairstep series of dead, splattered cat bounces, a ‘bear feast’.