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Strategies & Market Trends
The Dead Cat Bounce Theory
An SI Board Since March 1997
Posts SubjectMarks Bans
1836 12 0
Emcee:  stockvalinvestor Type:  Unmoderated
On this thread, I am going to test the dead bounce theory over the next
several weeks to see how this works against the dow and nasdaq averages.
I have a friend who has bought the stock with the most % decline on the
Nasdaq (must be over $5) at the close of trading of the day of the decline
and has then held it for one day selling the stock the next day at the
close of trading. In the past six months he has done this practice and
has achieved an amazing 50% return on his money!

So, I thought I would try the theory here. The beginning date will be from
Friday 3/14 close and we will start with 10,000. Also, the dow is currently at
6935.46 and the nasdaq is at 1292.97. We will assume that all transactions
are using Datek so it will 9.99 per trade and we will assume we are fully
invested the 10,000 in each stock.
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ReplyMessage PreviewFromRecsPosted
1836Da Cat thought he had the last word. Nah...that won't happen. How are you?SE-2/9/2001
1835 It's only appropriate that Da Cat has the last word.....<eom>Da Cat in Da Hat-9/16/1998
1834 Okay. <eom>Da Cat in Da Hat-7/18/1998
1833 WHY? WR61499-7/2/1998
1832 To All: ADVH will be a DCB? Dennis C-6/30/1998
1831 Next time anyone asks . . . save yourself some energy and give 'em this: rp. webster-6/14/1998
1830 Hi DCB is back in style but me no play the VSE.. JimJames F. Hopkins-4/22/1998
1829 Watch BMV-VSE tomorrow for the bounce.Good oportunity to make 50% profit tomorGeorge Hassen-4/22/1998
1828 Scott; just take my word for it, DCBs are really risky in a down market. VERY RJames F. Hopkins-1/10/1998
1827 The wonderful thing about DCB's are they can be taken on a case by case basscott-1/10/1998
1826 Caution ; ON DCB , the NYSE TICK is -1000, and the S&P has just broke belowJames F. Hopkins-1/9/1998
1825 NANX should bounce next week....Down over 45%....Still meets estimates...Looks Winston Kim-1/9/1998
1824 Scott; YOUR RIGHT ! DCB season is coming back into style, saw some today. TurmoJames F. Hopkins-1/7/1998
1823 Well well, market turmoil dead ahead.. it's just about DCB season scott-1/7/1998
1822 HI John; DEAD CAT..is very risky in this market..every thing getting hammered, James F. Hopkins-12/12/1997
1821 I expect EFII to be worth a few points at this level. <eom>John Crovelli-12/12/1997
1820 The worst is over, ( for the tech sector )some more may go down, but thJames F. Hopkins-12/9/1997
1819 It's well that's it's Ray, HereDa Cat in Da Hat-11/23/1997
1818 And the Cat came back. The very next day. The Cat came back. They thought he wGalirayo-11/22/1997
1817 It appears the only one left is a cat. This is fitting. <end>Da Cat in Da Hat-11/22/1997
1816 All the stocks that lead in their respective industries. Those that will capturDavid K.-10/28/1997
1815 Any predictions on what will bounce after this "correction" is over?taLuis-10/27/1997
1814 I will pat myself on the back... wtdi up 19% bada bing --- bada boomscott-10/10/1997
1813 RATL I believe qualifies for DCB. Downward pressure is over and the stock turneANDY DUMAS-10/10/1997
1812 WTDI.. a play??? Down 24% on less than expected earnings.... closed 2 3/8 pe scott-10/7/1997
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