dead cat bounce


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dead cat bounce

A sign that something is healthy or recovering, when in fact the thing is already on its way to ruin, collapse, or stagnation. Used particularly in reference to financial issues. (Based on the figurative notion that a dead cat will still bounce after a large fall.) Analysts are warning investors that the sudden spike in the currency's value is a dead-cat bounce, a natural and predictable rally after a heavy sell-off.
See also: bounce, cat, dead

a dead cat bounce

a misleading sign of vitality in something that is really moribund. informal
A dead cat might bounce if it is dropped from a great height: the fact of it bouncing does not reliably indicate that the cat is alive after all. The expression was coined in the late 20th century by Wall Street traders to refer to a situation in which a stock or company on a long-term, irrevocable downward trend suddenly shows a small temporary improvement.
See also: bounce, cat, dead

deadcat bounce

n. a small, knee-jerk rally in one of the financial markets. (A dead cat—or any other animal—will bounce only slightly after being dropped. Refers to a stock index or security price that bounces up only slightly after a precipitous fall. Securities market.) The whole market gave only a deadcat bounce after the string of losses this last week.
See also: bounce, deadcat