Dead Cat Bounce? eh?

Well, yeah let's start with definitions.

What is a dead cat bounce? The ever trust(un)worthy wikipedia defines it as a "term used by traders in the finance industry to describe a pattern wherein a moderate rise in the price of a stock follows a spectacular fall"



There's an excellent flash show here.








My source goes on to say that, "A market rise after a sharp fall can only really be seen to be a "dead cat bounce" with the benefit of hindsight. If the stocks starts to fall again in the following days and weeks, then it is a true dead cat bounce. If the market picks up starts to climb again, it was not a bounce but a bottom."

Basically, it is a vindication for shorters and what bulls in the market hope to overcome, i.e. turning the supposed false rise into a recovery from a bottom.

So why not a blog name with a more bullish connotation? Because nothing can beat the cuteness of "bouncing kuting." :)

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"How I got started in the stock market"

It was late 2006 when I began investing in the market. I signed up for an online account at www.philstocks.com.ph which was perfect for my busy schedule at the time. See, I have a day job. At the time, I was looking for a way to make my money grow. Depositing it into a bank account with promises of 1% growth per year minus taxes just did not appeal to me.

Risky? I was prepared to lose all in the stock market than just have it parked in a bank account where money can never see its utmost potential as the previous also promises higher returns despite the risk.

Philstocks offered an introductory course which I attended the day I signed up. It included some understanding of fundamental and technical aspects of the market.

After a year of trading on my own and realizing that there is more to trading than just buying and selling stocks based on instinct, I enrolled myself in a Technical Analysis Seminar from AbsoluteTraders.com. At the time of this writing, I am about to finish the introductory seminar and will be taking the first part of the course's exam come our next meeting in a couple of days.