# Outstanding Dead Cat Bounce Alerts!



## brerwallabi (8 December 2007)

We have a outstanding breakout alert thread so why not a dead cat bounce alert thread. 
Anyone keen to trade CCP?


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## J.C. (11 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Anyone? I'd love to jump on this one if i thought there was a good chance of a bounce back


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## Sean K (11 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*



J.C. said:


> Anyone? I'd love to jump on this one if i thought there was a good chance of a bounce back



Looks like that cat is dead. 

Dead cats are opportunites to buy on the initial knee jerk reaction to bad news. But the cat is dead and will then continue down. 

Takes some experience to judge these IMO, and then to trade them.

I suppose there can be longer stretched out dead cats, but it's not what I would be looking for as an investment.

Perhaps the example above may be a 'recovery' story?


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## J.C. (11 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Thanks mate, appreciate the well thought out advice!


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## explod (11 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*



J.C. said:


> Anyone? I'd love to jump on this one if i thought there was a good chance of a bounce back




Welcome to try.  I have been there and done that but was very lucky that some second sense kicked in.   

First experience Aristocrat, some three or four years ago, at about $1.60 to 1.70 Rivkin said the buy of the century.  No muckin about bought $20,000 worth (that I probably could not afford to lose at that time.)  they dropped and they dropped.  By this time had gone quiet not game to tell the missus.  They hit .90 cents, saw some buying overtake sellers, on instinct brought another $20,000 s worth.  They hit $1.20, near enough to my money back so sold the lot.   So scared I could think of nothing else.  Of course since they have gone up and up and up.   Without checking they are probably around $12 or $13 dollars now, too disgusted to ever look at them again and never will.   Good lesson one with cat bounce.

Second,  Ballarat Gold, chart below,was in the bounce at $1.50, 0ut at 1.30,   Sureley must be in for the bounce at 50 cents so in again, watched them drop to .29 cents in disbelief, but this time with some calm doubled my holding and managed to salvage something at 40 cents.  So have a go if you have the nerve.  I only follow positive trends with my own back up fundamental study these days .   How I did not lose my shirt I will never know,....


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## J.C. (11 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Wow... now you made me really nervous... I think I'll stick to the less risk but with less potential gains for the moment... As i'm only very new to this! 

thanks again
Justin


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## prawn_86 (11 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Welcome to ASF Justin 

If your a new user check out the beginners lounge for heaps of useful info.

My words of advice as I was just starting out not that long ago:

Dont risk what you cant afford, dont rush into things, and when you do start sticking to the top 200 for experience is a good ploy


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## J.C. (11 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Thanks mate, top 200 seems to be the general consensus from most people!

Happy trading!


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## jeffho (13 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Anyone got a chart for AED? On the bounce?


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## explod (13 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*



jeffho said:


> Anyone got a chart for AED? On the bounce?




Hope this helps    ..............................................................................................................................................................


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## J.C. (13 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Hmmmm... anyone got any insights on this one?


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## prawn_86 (13 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Bradken: BKN.

I would never buy it, but for those who do trade dead cat bounces i would love to know why/why not this is a buying opportunity tomorrow morning


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## Fleeta (14 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

I bought BKN yesterday for 9.05. Second successful dead cat bounce trade for me after buying BOL at 1.84.


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## J.C. (14 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Well... its not successful yet 

Tempted to jump on BKN myself though....


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## rub92me (14 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

They need to hit the ground first before they can bounce. The price action yesterday on BKN (open on 9.00 quickly up and then closing below 9.00) indicates to me that we haven't seen the ground for this one yet..


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## lamot1 (17 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

For those game enough to try, CNP is down about 70% this morning. FY08 profit has been revised down about 15% and the Dec '07 distribution is canceled. Big debt refinancing concerns which, in this market, may really drag on the stock and limit the size of any potential bounce.


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## tyson1 (18 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

this forums great! haha i've never really thought of trading these as they seem, from my observation to be quite unpredictable. but i wish i had been in on cnp this morning 40-85 cents  giving some of these a bit more thought now although some of those horror stories  might make me think twice. Keep the charts coming
Thanks Tyson


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## iamtrueblue (19 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*



lamot1 said:


> For those game enough to try, CNP is down about 70% this morning. FY08 profit has been revised down about 15% and the Dec '07 distribution is canceled. Big debt refinancing concerns which, in this market, may really drag on the stock and limit the size of any potential bounce.




Bugger, Lamot I read your post yesterday morning 1hr after the market opened when CNP was at .65 and bouncing back from .42 at that time. Did a bit of research -past divies, what they own, etc and thought on paper this looked good to try for a quick profit on the bounce back. Even at .65 this seemed silly given the assets they have (Excluding the debt).  

However never tried punting on bounce backs so i got nervous and did not go for it. Look at this now. Should have put even a few k on it-very short term. "Any profit is a good profit". Live and learn. 

This is a good thread people keep the posting there are profits to be made on these occasianally and CNP was a big one.


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## prawn_86 (19 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

You wouldnt be in a profit if you bought on the first day of the big dive.

Thats why i dont trade dead cat bounces, you never know what day it is actually going to rally


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## iamtrueblue (19 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*



prawn_86 said:


> You wouldnt be in a profit if you bought on the first day of the big dive.
> 
> Thats why i dont trade dead cat bounces, you never know what day it is actually going to rally




LOL this is very true Ray. Be interesting to see what happens today with its price. Some silly stuff happening on comsec and hard to tell.


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## J.C. (19 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Got in on CNP at 0.90 today and sold at 1.32... very happy!

Anyone else have dead cats to report? This could become a dangerous addiction...


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## Real1ty (19 December 2007)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*



J.C. said:


> Got in on CNP at 0.90 today and sold at 1.32... very happy!
> 
> Anyone else have dead cats to report? This could become a dangerous addiction...




You could very quickly lose your addiction trading in a stock like that, when they go into a trading halt 

If you have the capital and the appetite for a lot of risk, could make some good money off these.


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## Fleeta (18 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Just got into MFS at $1.22. Surely a dead cat bounce coming up here - many people would have got margin calls on this, looks oversold to me - 10% fully franked dividends - c'mon!


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## J.C. (18 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Looks good! I'm in at 1.24, wish me luck


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## Fleeta (18 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Oops, might not be working so well - back to $1.05.

You would have thought I would learn after Bradken!


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## J.C. (18 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

$%*$&$*&#$)*&

I'm out at 0.97. $500 loss in 2 hours... really starting to hate the market right now


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## sideshowbob (18 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

just went under 1.000
I was gonna buy below that... but its diving now
(If one can dive from a sky dive.)


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## J.C. (18 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Maybe thats where the phrase "Dead Cat" comes from? cause this cat has been killed a couple of times already, and it just keeps re-dying.... wonder at what price it will lose its 9th life? 0.82 as we speak


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## sideshowbob (18 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

wait for the friday dip... last 1 minutes...
then Im gonna just throw $1000 at it... just for fun... see what happens.
It'll be my $1000 loose play for this year...
0.77 now


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## J.C. (18 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Sounds like a plan... just hit 0.74... really feel for this who bought in at $6+


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## Struzball (18 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

JC, just checking you realise what a dead cat bounce is..

You seem to be assuming just because the stock is doing badly it will 'bounce'.
That's not a dead cat bounce, a dead cat bounce is when there is a big crash and just as a dead cat would do if you threw it off a tall building it would hit the bottom, bounce, but would still be dead.

You did well to make 50% on CNP's bounce, but as the analogy suggests.. it's dead now.  Making any trades after that equivalent to putting it all on black imo, possibly even more risky.

If you already understand what a dead cat bounce is don't mind me  just making sure nobody invests in a dead cat long after it fell off the building, splat all over the pavement and got scooped up and thrown in the trash, assuming it will soon 'bounce'


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## J.C. (19 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

Thanks Struz, yes i do realise that if a company plummets that there is a good chance it will stay there... I just get a bit caught up in the moment is all


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## Sean K (19 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*

I reckon there's a chance the XAO may dead cat from around here. Or, the cat might be unconscious and then wake up and start to wobble sideways for a year or so...


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## brerwallabi (19 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*



kennas said:


> I reckon there's a chance the XAO may dead cat from around here. Or, the cat might be unconscious and then wake up and start to wobble sideways for a year or so...




I reckon there is a good chance too, just make sure you get out on the high. 
Remember at the end of next week we have a 3 day break are you game to hold if this bounces to hold.
Two nights of the DOW will pass and you wake up Tuesday and it really is a dead cat.


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## Sean K (20 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*



brerwallabi said:


> I reckon there is a good chance too, just make sure you get out on the high.
> Remember at the end of next week we have a 3 day break are you game to hold if this bounces to hold.
> Two nights of the DOW will pass and you wake up Tuesday and it really is a dead cat.



Interesting, I forgot about Australia Day. Must do something special here in Quito with some fellow Aussies. Maybe a BBQ and beer somewhere and sing Watzing Matilda..... Cheers. 

I appreciate what you say about the gap and days the DOW might tumble, but what if it's the other way around?


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## M34N (20 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*



kennas said:


> I reckon there's a chance the XAO may dead cat from around here. Or, the cat might be unconscious and then wake up and start to wobble sideways for a year or so...



kennas,

Hopefully this isn't our dead cat... :


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## brerwallabi (20 January 2008)

*Re: OUTSTANDING DEAD CAT BOUNCE alerts*



kennas said:


> I appreciate what you say about the gap and days the DOW might tumble, but what if it's the other way around?




Out on Thursday no matter what.
Not game to hold over the weekend.(especially a long one)
There will be plenty of other opportunities regardless.

I could be a out before Thursday and that depends on the direction of the XAO as I definitely did not short it.


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