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Strategies & Market Trends : The Dead Cat Bounce Theory

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To: Steven Cooper who wrote (208)3/25/1997 9:08:00 PM
From: Kiriakos Georgiou   of 1836
 
You won't find them on the net. Go and talk to the professors in the business school of a university in your area. Or if you like reading, pick-up a copy of "Investment Gurus" from your local bookstore.

These theories are too simple to work nowdays---they are nothing new to get excited about. The dead cat mouse model suggests that the market is slightly inefficient to the downside at the momment of some bad event for a company. Even if that was true for more than 50% of the time, you would still have to know were the bounce will occur. Look at the charts of CSCC, COMS, CSCC and others, the up-bounce was not after 3:59pm of the day of their big fall. The up-bounce, if any, was brief just before yet another -15%. Get caught in a few of those and you won't want to hear about any dead cat bounce theories.

Kiriakos
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