Dead Cat Bounce

A “dead cat bounce” is a figurative term used by traders in the finance industry to describe a pattern wherein a spectacular decline in the price of a stock is immediately followed by a moderate and temporary rise before resuming its downward movement, with the connotation that the rise was not an indication of improving circumstances in the fundamentals of the stock. It is derived from the notion that “even a dead cat will bounce if it falls from a great height”. (Wikipedia)

This concept was brought to mind by the recent activity in dry bulk stocks where heavy volumes have been traded and prices have taken substantial leaps in percentage terms. Have the shares bottomed? Or as Urs Dür of Lazard suggests in more sophisticated terms: “…this most

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