A DEAD CAT BOUNCE is a temporary market rally during a significant or sudden general downward trend of a stock. The gruesome name came from the idea that even a dead cat can bounce if thrown high and fast enough, Cruel as it sounds but there is an applicability of this theory to the stock market. It is utilized by some day traders to cash in some gain but the timing is difficult, so please observe caution in using it.
I would suggest stock investors not to get caught with engaging on buying stocks to fast particularly if you see a short-term reversal in an effort to bring down your average stock price. You might be victimized by a Dead Cat Bounce. For long-term and fundamental investors, please stick to your monthly buying schedule and budget. Avoid this especially on a seller market, when everything seems to be attractive. Stick to investment plan with discipline.
God bless and Good Luck
P.S.
In a bull market, everyone looks like a genius and vice versa on a bear market. So be patient and stick to your investment plan with the discipline to avert emotionally driven investment decision