Emotional Investor
03-06 12:02

Seriously! Using the term dead cat bounce to describe what mite be coming shows you have no idea what a dead cat bounce is. So let me educate you.

In 1986, I started my investment journey in stocks. In 1987, I survived a real dead cat bounce... barely. But by the end of 1988, I was still in the red. The aftermath of the dead cat bounce was companies I owned going bankrupt or being brought out for pennies on the dollar. so the pain didn't just last a few days. It lasted over a year.

In around august of 1987, the market peaked at all time highs, the s&p almost hit 340. the weeks that followed were a "normal" retraction, until on a Friday in October the s&p lost 10% in a day. Not just a few stocks, the entire market. Then the following Monday... black Monday, stocks across the board dropped a further 25% in a single day. The entire market lost a third of its value in 2 trading days, down to 220.

That, my tiger friends, is a dead cat bounce. To even suggest that will happen in 2026, is frankly stupid. Here's why...

In 1987, listed companies were not well regulated. Just one example, gold corp which I held shares in, had a vault full of gold, or so they said. Turned out after the 87 crash, they certainly had a vault, but it was empty. With gold pushing new highs Now, I don't trust equities or worse stable coins unless their precious metals are audited and verified. And they must be based in a country with bullet proof regulations. 

But with geopolitical tensions rising, and inflation devaluing the USD, gold is solid. It is not a commodity, it's a currency, a hedge against inflation. Physical gold that is. 

Same for silver and copper for different reasons. The physical is an industrial commodity that has significantly more demand than supply. Paper silver, and spot prices that a derived from it are being seriously manipulated. Yes, the COMEX paper silver is going to zero. But the physical has to go up. 

Tech stocks like $NVIDIA(NVDA)$  etc, great buying. Record demand, record returns. Just a correction. and they were getting expensive but There are no fundamentals that support a 35% drop in two days.

Next up oil stocks, up due to bombs flying in the Middle East. Yes this is a short term issue for china, but not America. so I wouldn't be going all in on oil. Gas is a different story, I note my shares in $Venture Global, Inc.(VG)$  for example are going nuts. Am I selling because they will go higher for sure, but will eventually pull back. No not selling because the long term tailwinds are crazy good. But for me, I have a solid position so I just hold. 

Defense stocks? A buy. I watched missles launching off US navy ships lost count at about $100 Million. American navy will need to seriously restock. $Lockheed Martin(LMT)$  and other companies like it, well let's just say the executives of these companies probably just placed an order for a pallet of the most expensive French champagne available. $Palantir Technologies Inc.(PLTR)$  execs probably placed an order for two pallets.

I could go on with other industries, but then I'll be playing a broken record. Please stop using terminology you have not experienced first had, and thus have no clue what it means. Nothing to see here. No dead cat bounce coming. Except the COMEX,a dead paper exchange walking. 

Oh and in closing, I'll digress a tiny bit. My least favorite feed in tiger... those who follow me know who I'm speaking about. Today during market hours they announced that $AST SpaceMobile, Inc.(ASTS)$  sored 10% during market hours. Then they announced that it plummeted 5% in after hours trading. Wait, what? If you want to call yourself stock tracker, stop being bot generated nonsense and actually generate something factual. Their reasons for stocks plummeting or soring are even more comical. Based on outdated and regurgitated nonsense.

I'd rather hear the stock was up 5% today. That's the fact. 

As always, happy trading my tiger friends 

@TigerWire @Tiger_SG @Tiger cub @TigerTrade @MillionaireTiger @Tiger_chat @MojoStellar 

Is the Rebound a Dead Cat Bounce?
The past week was the absolute peak of geopolitical chaos, sending the $Cboe Volatility Index(VIX)$ skyrocketing past 25💥. The $Dow Jones(.DJI)$ shed over 1,000 points in a single session, triggering massive intraday swings. 🎢 Are you treating this tech pullback as a "buy" opportunity? Or it this just a dead cat bounce?
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Comments

  • Emotional Investor
    03-06 13:24
    Emotional Investor

    I think you guys like me trolling a little bit. Not really trolling though just teaching ppl that words must be backed with experience and fact. Happy reading 

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