CATBAT

// ScamScout case file #01

Dead cat bounce

A short jump after a big drop. Looks like a comeback. It isn't.

  1. ScamScout case file 01: Dead cat bounce. The cover of the file with a mugshot of the suspect, Dev Null, and the stamp "case open".
  2. Exhibit A for Dead cat bounce, with the definition card: A short jump after a big drop. Looks like a comeback. It isn't.
  3. Witness report: Dev Null at work, with the quote "BUY THE BOUNCE!"
  4. How to spot Dead cat bounce: CATBAT studies the evidence next to a checklist of three questions.
  5. Case closed: the end of the Dead cat bounce case, stamped "case closed".

// Can you spot a dead cat bounce?

Q1

What is a dead cat bounce?

  1. A short price jump after a big drop, before it keeps falling
  2. A new all-time high after a long rally
  3. A token that pays holders every day
Show the answer

A short price jump after a big drop, before it keeps falling

Q2

Which sign makes a bounce look like a dead cat?

  1. A strong rise on high volume with real news
  2. A jump with no news and low volume, then a lower high
  3. A slow climb over many months
Show the answer

A jump with no news and low volume, then a lower high

Q3

What does "buy the bounce" often mean for late buyers?

  1. They get in early on a new trend
  2. They help someone who bought lower to sell to them
  3. They can no longer lose
Show the answer

They help someone who bought lower to sell to them

Read the file as text

FILE #01

ScamScout // Case file

Suspect

Dev Null

Weapon

a stuffed toy cat

Victims

everyone who "bought the bounce"

Verdict

3x yes = dead cat.

Note

even a dead cat bounces if it falls far enough...

Witness

"BUY THE BOUNCE!"

...said the guy who sold you the top.

// How to spot it

Check 01

jump with no news and no volume?

Check 02

lower high after the jump?

Check 03

everyone yelling "buy" at once?

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