After an accident Year in the public markets, you can take today’s fantastic trade as good news. Any positive price movement is a win, right? Kind of.
The tech-heavy Nasdaq Composite Index rose 3.4% today, while other major U.S. indexes jumped by a small amount at the start of the trading week at the Hall of Fame. (It’s a blessing that the markets are in turmoil, I won’t deny it.)
pay attention
Good news? Of course, but only if you are into cats.
Let me explain. When the price of a particular product or security falls sharply, it often follows the declines with a slight pullback. If the main forces that drove the security’s negativity remain in place, such rebounds are often short-lived, and do not represent an actual “bottom” of any trading range. This is often, loosely, called a “dead cat pop” or, more specifically, a moderate recovery administered if a cat’s carcass hits concrete after falling from a high window.
