A dead cat bounce is a brief, temporary price recovery in a sharply falling asset, followed by a continuation of the downward trend, based on the idea that "even a dead cat will bounce if it dropped from a great height". It's a short-lived rally, often mistaken for a true reversal, that tricks investors into thinking an asset is recovering when it's actually just pausing before further decline.
A big gain amidst a bear market is called a “dead cat bounce” by traders. It's a short-lived recovery amidst a prolonged decline in markets, born of the theory that even a dead cat will bounce if it falls far enough.
A dead cat bounce (DCB) describes a temporary recovery within a broader bearish market structure. The rebound tends to be limited in size compared to the preceding decline and often occurs after a sharp, news-driven move.
The term “dead cat” might sound odd, but in video production, it's an essential tool. A dead cat is a furry windscreen that fits snugly over a microphone to block out wind noise during outdoor shoots. Its unusual name stems from its appearance—it can genuinely look like a piece of roadkill strapped to your mic!
It originated from an old Wall Street saying: “Even a dead cat will bounce once if it falls far enough.” A dead cat bounce, also known as a “sucker rally,” is a slang financial expression describing a sharp but temporary increase in share prices after a major decline.
In financial markets, a dead cat bounce refers to a short-lived recovery during a prolonged decline, a fleeting rebound that can mislead investors by giving the impression of a market turnaround but often precedes further losses.
The 90% rule in Forex is a cautionary saying that roughly 90% of new traders lose 90% of their capital within the first 90 days, highlighting the high failure rate in retail trading due to lack of discipline, education, and risk management, rather than a fixed statistical law. It emphasizes that Forex is a difficult skill requiring a business-like approach with proper strategy, patience, and emotional control to succeed.
I can't swing a dead cat without hitting X" means that there is so much of X around that you are bound to run into X frequently. Imagine if you had a dead cat by the tail and you were swinging it around your head.
They will hold their tail low to the ground and may flick it rapidly back and forth as their anxiety mounts. Their eyes will widen, and their pupils dilate, as they remain alert for danger. Their ears will begin to turn out to the side, shifting lower on the head, or begin to twitch.
Taking a buy-and-hold position in Bitcoin five years ago would have delivered massive returns for investors. As of this writing, Bitcoin is up 962.3% over the period. That means that a $1,000 investment in the token made half a decade ago would now be worth more than $10,620.
A 2019 study by Harvard Business Review found either Vanguard, BlackRock or State Street is the largest listed owner of 88% of S&P 500 companies. There is a perception that a few select companies own a vast majority of the stock market.
The 3-5-7 rule in trading is a risk management framework that sets specific percentage limits: risk no more than 3% of capital on a single trade, keep total risk across all open positions under 5%, and aim for winning trades to be at least 7% (or a 7:1 ratio) greater than your losses, ensuring capital preservation and promoting disciplined, consistent trading. It's a simple guideline to protect against catastrophic losses and improve long-term profitability by balancing risk with reward.
While industry insiders are generally cautious, few expect a crash. Morgan Stanley notes “continued equity gains in 2026” with modest growth, as a lot of good news is already priced in. Fidelity's 2026 outlook is that it “could be another positive year” for the market — but investors shouldn't ignore risks.
While some traders may believe they can predict a dead cat bounce by using certain fundamental or technical analysis tools, it's impossible to do so every single time. If there were a way to accurately predict market movements or different patterns, people would always try to time the market.
Technical factors, such as a short position from many firms, can help in the formation of a dead cat bounce. As many investors buy back their shares to close a short position, the stock receives a temporary increase in demand, driving up the price of the stock.
When stocks rebound briefly in a moment of free fall or uncertainty, it's known as a “dead cat bounce.” That's from the notion that even a dead cat will bounce when it falls from a great enough height.
Very little space, cramped quarters, as in There's not enough room to swing a cat in this tent. This expression, first recorded in 1771, is thought to allude to the cat-o'-nine-tails, or “cat,” a whip with nine lashes widely used to punish offenders in the British military.
When someone says "I'm dead," they are not literally referring to their physical state but rather emphasizing their emotional response. It can be used to indicate that something was so funny or unexpected that it figuratively "killed" them with laughter or surprise.
Symbolism of the death of a cat The symbolism of the death of a cat can symbolize a connection to the unknown and the hidden. It can represent access to a deeper spiritual realm or the opening of new perspectives in your life.
The "black cat" personality is typically introverted, mysterious, and slower to trust. The "golden retriever" personality is extroverted, friendly, and eager to please. It's important to communicate clearly in relationships, especially when partners have opposite personalities.
To turn $100 into $1,000 in Forex, you need a disciplined strategy focusing on high risk-reward (like 1:3), compounding profits through pyramiding, and strict risk management (e.g., risking only 1-2% of capital per trade) using micro-lots on volatile pairs, while continuously learning and practicing on demo accounts to build skills without real capital risk.
How did one trader make $2.4 million in 28 minutes?
For one trader, the news event allowed for incredible profits in a very short amount of time. At 3:32:38 p.m. ET, a Dow Jones headline crossed the newswire reporting that Intel was in talks to buy Altera. Within the same second, a trader jumped into the options market and aggressively bought calls.
One popular method is the 2% Rule, which means you never put more than 2% of your account equity at risk (Table 1). For example, if you are trading a $50,000 account, and you choose a risk management stop loss of 2%, you could risk up to $1,000 on any given trade.
