$Tiger Brokers(TIGR)$ Markets have bounced — but is it the beginning of a true recovery, or just a classic dead cat bounce?
That’s the question I’ve been asking myself lately. After a brutal correction, the recent rebound feels hopeful... but also suspicious. One green week doesn’t erase weeks of selling pressure, macro uncertainty, or earnings downgrades.
So, how do I tell the difference?
Dead Cat Bounce Signs:
Sharp short-term rally after a steep fall
Driven by short-covering, not fresh inflows
Weak volume or leadership concentrated in oversold names
No major shift in fundamentals or macro tone
True Bottom Clues:
Broad market participation — not just a few names bouncing
Capitulation already happened — panic selling, high VIX, massive outflows
Signs of stability in inflation, interest rates, or economic data
Investor sentiment turning from fear to cautious accumulation
Right now? I think we’re somewhere in the middle. The market wants to recover — but it’s still fragile. One bad CPI print, Fed comment, or geopolitical twist could send us back to the lows. At the same time, if the rally holds and breadth improves, we might be watching a true bottom take shape in real time.
For now, I’m being cautious. Not all dips are buying opportunities — and not all rebounds are safe. I’m watching the data, protecting capital, and waiting for conviction to show up in the charts — and not just in the headlines.
So — dead cat or true bottom? We’ll know soon enough. Until then, I stay ready for both.
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