Don’t let today’s software rally improve your mood • TechCrunch
after raw Throughout the year in the public markets, you might consider great day trading as good news. Any positive price movement is a profit, right? Kinda.
The tech-heavy Nasdaq Composite is up 3.4% today, while other major US indexes jumped by smaller amounts at the start of the trading week. (I have to admit that markets are trending toward Disrupt which is rather nice.) Even more important for the technology industry is sector-specific news.
good news? Sure, but only if you’re a cat lover.
Let me explain. When the value of a particular commodity or security drops sharply, it often follows up its decline by bouncing slightly. If the fundamental forces that drove the safety down remain in place, such bounces are often short-lived and do not indicate the actual “bottom” of any particular trading range. This is often called, somewhat informally, “dead cat bounce,” or more specifically, the kind of modest bounce a cat’s body might overcome if it hits concrete after falling from a high window.