Dead Cat Bounce

As we sit and watch the market head lower into the depths...we all know that we are subject to the short term phenomenom of the "DEAD CAT BOUNCE".

From WIKI:

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".

The following chart shows the tremendous surge in Gold (highlighted by the ETF):

An easy way to play a bounce in the market would be to take a position in the DZZ - Ultra Short Gold ETN (we will get into a discussion about ETF's Vs. ETN's at a later time):

Trade well,
Trader D