Origin of dead-cat bouncefrom the notion that even a dead cat would bounce a little if it were dropped from a great height
dead-cat bouncedead-cat bounce
- A short-lived rally near the bottom of an otherwise persistent decline in the market price of a stock, often caused by investors covering short positions.
- An auspicious but ultimately short-lived improvement in an otherwise unfavorable trend.
(plural dead cat bounces)
- (trading) A temporary recovery in the price of an instrument whose price has fallen rapidly and is expected to fall further in the long run.