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Strategies & Market Trends : The Dead Cat Bounce Theory

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To: stockvalinvestor who wrote (18)	3/19/1997 9:11:00 PM
From: Rocketman	of 1836

Keep in mind that even if this does work on paper, it still may go sour when you toss in real greenbacks. But, I do like the theory. Market overreactions on extreme changes, both up and down, are the rule not the exception, and this theory definitely plays on the over-reaction. I would agree though that the timing during the day could be important. It would be interesting (more work for you of course) to make a mid-day sales decision based on your gut feeling as when to sell versus an all day hold with a 3:59 PM sale. Another question in regards to actually doing this, don't you really need more funds than the original $10K to cover the delay to settlement dates, and can you get a broker to actually make a daily 3:59 trade for $9.99. How much time cushion do you need to get a market trade executed every time. Just curious what the consensus is. GO CAT GO, BOUNCE CAT BOUNCE! GREAT CONTRARIAN EXERCISE! Thanks, Dave P.S.: It is really tempting to just plunge into this with some cash - I really like the concept, and with the beating I'm taking in biotec, it probably is lower risk too.

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