A dead cat bounce is a temporary recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend.
 | | Term of the Day | Words to Know | | |  | | Dead Cat Bounce | | A dead cat bounce is a temporary recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend. A dead cat bounce is a small, short-lived recovery in the price of a declining security, such as a stock. Frequently, downtrends are interrupted by brief periods of recovery — or small rallies — where prices temporarily rise. The name "dead cat bounce" is based on the notion that even a dead cat will bounce if it falls far enough and fast enough. | | Read More » | | Related to "Dead Cat Bounce" | | | | SPONSORED BY INVESCO | | The Complete Guide to ETFs | | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | | Learn More » | | | Downtrend | | A downtrend occurs when the price of an asset moves lower over a period of time. Discover more about what happens during a downtrend here. | | Read More » | | | Continuation Pattern | | A continuation pattern suggests that the price trend leading into a continuation pattern will continue, in the same direction, after the pattern completes. | | Read More » | | | Short (Short Position) | | Short, or shorting, refers to selling a security first and buying it back later, with the anticipation that the price will drop and a profit can be made. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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