Dead Cat Bounce Day. For those who don’t know t
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Posted On: 02/08/2021 12:15:16 PM
Dead Cat Bounce Day. For those who don’t know the term see reference https://www.investopedia.com/terms/d/deadcatbounce.asp.
And for those who are queuing up their technical nukes, I am aware that today is not technically a dead cat bounce. That said, here is what I think is happening.
As I previously posted “buy on the rumor, sell on the news”, today is about day traders positioning themselves for the next quickie profit. Hopefully, there are some of the people who actually listened to the cc, buying for the long haul. But probably, most of the day traders didn’t listen to the cc and could care less what was said. When you go from an open of $.75 high, a low of $.40 and a close of $.43 (187% swing), that is the kind of volatility day traders drool over. The traders who bought Friday above the $.43 close and held, must now contemplate how long to the hold their “looser”. For day traders, 7-10 days for the next potential pop (we know what’s coming), is an eternity. So many will simply cut their losses and move on. The winners for last Friday who sold at a profit are back at the table for seconds. The pps fluctuation you see is testing the support level to insure that it will hold for the next week or so and guarantee a profit.
So today’s pps has nothing to do with Friday’s cc, what was said, what wasn’t said, lack of questions, or even if possible “mumbling” occurred. But what I do see as a good sign, it looks like the new low (resistance) for the GNBT pps Day Trader’s Chicken game has now been moved from the low $.20s of early Jan. to $.40s today.
And for those who are queuing up their technical nukes, I am aware that today is not technically a dead cat bounce. That said, here is what I think is happening.
As I previously posted “buy on the rumor, sell on the news”, today is about day traders positioning themselves for the next quickie profit. Hopefully, there are some of the people who actually listened to the cc, buying for the long haul. But probably, most of the day traders didn’t listen to the cc and could care less what was said. When you go from an open of $.75 high, a low of $.40 and a close of $.43 (187% swing), that is the kind of volatility day traders drool over. The traders who bought Friday above the $.43 close and held, must now contemplate how long to the hold their “looser”. For day traders, 7-10 days for the next potential pop (we know what’s coming), is an eternity. So many will simply cut their losses and move on. The winners for last Friday who sold at a profit are back at the table for seconds. The pps fluctuation you see is testing the support level to insure that it will hold for the next week or so and guarantee a profit.
So today’s pps has nothing to do with Friday’s cc, what was said, what wasn’t said, lack of questions, or even if possible “mumbling” occurred. But what I do see as a good sign, it looks like the new low (resistance) for the GNBT pps Day Trader’s Chicken game has now been moved from the low $.20s of early Jan. to $.40s today.
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