Dead cat bounce
A slang investment term indicating a brief rally in a stock or index’s performance during a significant period of decline. The index or security is then likely to continue to fall again. So a share’s price may drop from 66p to 33p over a three month period before recovering for 40p over the course of a few days before dropping back further to 25p. This can work in favour of day traders or short-term investors but long-term investors are likely to lose money.
This definition is for general information purposes only