Dead cat bounce

In financial markets, a 'dead cat bounce' is a term that describes a temporary recovery in the price of an asset following a significant decline. Imagine a scenario where a company releases disappointing financial results, leading to a sudden drop in its stock price. After this decline, there might be a short-lived uptick in the stock price, giving investors hope that the worst is over. However, this upward movement is typically brief and is often followed by a resumption of the downtrend in the stock price. This phenomenon, where the price briefly rallies before declining again, is what traders refer to as a 'dead cat bounce'.