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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: edward shapiro who wrote (2290)	1/12/1998 7:45:00 PM
From: steve goldman	Read Replies (1) \| Respond to of 4969

The term dead cat bounce is used to refer to a bounce which never follows through. It is used to describe a falling stock which seems to bounce off some resistance level, but never appreciates after the initial bounce and seems to continue to make new lows. For instance, ORCL got hammered from 32 down to 21...it bounced back up to 23 i think. then it just faded to its close today of lower levels. This would be a dead cat bounce. You throw a live cat from the kitchen table, it bounces up, springs to life and is on its way. A dead cat hits the floor with a thud and doesn get up. regards, steve@yamner.com

To: edward shapiro who wrote (2290)	1/12/1998 8:05:00 PM
From: nick nelson	Respond to of 4969

"Dead Cat" Pounce! What all the Nasdaq market makers did this morning.<ggg> After Friday's sell down -the 'fearless' market makers in their best interest of supporting market liquidity- immediately headed for the seller and did the "Dead Cat Bounce!" As soon as they saw that they wouldn't lose any money supporting the US market - they all ran prices back-up, waved their ASK's in our faces and said "Now you pay, sucker!" That's the "Dead Cat's" pounce! <ggg> They are so predictable... it's was like money in the bank. There are other money making definitions of the Dead Cat Bounce, but none other are as predictable. Ed, you're right... Steve explained it better. <ggg> nick