Air Pocket Stock
You know what an air pocket is. You're on the Southwest commuter to San Jose. Everything's fine at 37,000 feet, then all of a sudden, you're at 34,000 feet. The drinks seem gravity-less, and the flight attendant is plastered against the ceiling.
Air pockets happen in the stock and bond markets as well. Sudden shocks break the system. Whatever.com, that was happily going along, trading at $37/share...suddenly drops to $34.23/share on the unexpected shock of a reported metric not warmly welcomed by the Street.
But note that, just as Southwest usually returns to its 37,000 foot home, stocks hitting air pockets usually float back up to their trading range after the drinks get mopped up.
Related or Semi-related Video
Finance: What is Dead Cat Bounce?13 Views
Finance allah shmoop What is a dead cat bounce It
sounds like a dance move from the old west right
but it actually refers to a terrible situation when the
market plummets rebounds very slightly and then plummets again The
idea comes from the notion of dropping a cat off
of a high building It hits the cement dead bounces
a bit before then is a big wet thud Yeah
peeta no cats were harmed in the production of this
definition Thie market has fallen from five thousand twelve hundred
now it's at fourteen hundred and now it's back to
twelve hundred Yeah that uplift of two hundred points there
from twelve hundred fourteen hundred before it went back twelve
hundred which is the concrete that's the dead cat bounce
I'm not totally sure who came up with this term 00:00:50.247 --> [endTime] but wei have a pretty good idea
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