Dead Cat Bounce

Trading tutorial covering the Dogs of the Dow and a dead cat bounce.

Video displays a key reversal in the s&p 500 and example of a dead cat bounce.

1 minute clip that explains the definition of dead cat bounce.

Dead Cat Bounce Definition

A dead cat bounce is a trading term used to define when a stock in a severe decline has a sharp bounce off the lows.  A dead cat bounce occurs due to the enormous amount of short interest in the market.  Once the supply and demand is unbalanced, any sort of bear market ral