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Posts Tagged ‘short covering’

Dead Cat Bounce

Posted by Larry Doyle on March 4th, 2009 3:00 PM |

The equity markets are up almost 3% today. Did we just put in a bottom? Can we at long last expect better price performance? Are we seeing a turnaround in the economy? Well, in Wall Street parlance today’s price action is known as a “dead cat bounce.”  I had mentioned a day or two ago that a short term RSI (relative strength index) had fallen below 30%. Anytime that index gets that low, the market is susceptible to a bounce to force some short covering

The Federal Reserve released a report, known as the Beige Book, and highlighted that they expect No Turnaround Soon  in the economy.  

Additionally, even though the major market averages are up 3%, why is it that the major capital providers are down significantly on the day? Look at the price changes for the following: (more…)

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