"There's an old Wall Street saying that "even a dead cat will bounce if it falls from a great height," which brokers use to urge caution before investing in a company that seems to be on the rebound from a catastrophic fall."Really? I thought a 'dead cat bounce' was no bounce at all, because dead cats just splat, they don't bounce.
"Dead cat bounce" is old Wall Street Speak. Broken-down stocks that drop a lot often show a bounce when they hit their first new-rationalization level. But they can display that quick reaction on the way down to even more profound losses, in a "waterfall" effect.
It's a description of a suicide play for traders.