Stray Cat Bounce--9 lives baby
Such a comedy, such a tragedy,
"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
"The stock market is filled with individuals who know the price of everything, but the value of nothing." — Phillip Fisher
Black and orange stray cat sittin' on a fence
Ain't got enough dough to pay the rent
I'm flat broke but I don't care
I strut right by with my tail in the air
The Dow has retraced barely one-third of what it lost Monday, like a 'dead cat'?
By
The stock market has been bouncing pretty nicely for two days now, since it suffered its worst day in two years on Monday.
But by the numbers, the Dow has only recovered 352.88 points, or 34.1%, of the 1,033.99 points it lost on Monday.
And the S&P 500 has retraced 47.4% of Monday loss, the Nasdaq Composite has taken back 43.0% of what it lost and the Roundhill Magnificent Seven ETF has recovered 37.7%.
When considering the selloffs from those trackers' respective record highs reached in July through Monday's close, here's what the two-day bounces have recovered:
Dow: 14.1%
S&P 500: 15.8%
Nasdaq Composite: 10.1%
Mag 7 ETF: 6.8%.
The Wall Street term "dead cat bounce" refers to when there is a very small bounce after a big fall. The idea is, the smaller the bounce, the more likely the selloff will continue.
Roundhill Magnificent Seven ETF
Ko-fi.com/thejournaloflingeringsanity
I was so....taken with the Stray Cats, at the time, more specifically, the new flavor they added. It was entirely different than its contemporaries, based in jazz but still pop. I suppose the Manhatten Transfer would be another band who might have influenced the Stray Cats. Or just most of the Broadway Live musicals then. Anyway thanks for a stroll down ol' memory lane. Ever read Belarmino and Apolonio? By Ramon Perez de Ayala. Found an English translation. A book written about a street, and some shoemakers. So good, I am reading it as slowly and as fast as possible.
This must have an effect on market sentiment; what sort of shareholder would not feel nervous.