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After a tough 12 months within the public markets, you would possibly take as we speak’s good buying and selling as excellent news. Any optimistic worth motion is a win, proper? Kinda.
The tech-heavy Nasdaq composite index rose 3.4% as we speak, whereas different main U.S. indices jumped smaller quantities in a hall-of-fame begin to the buying and selling week. (That the markets are turning up for Disrupt is fairly sort, I have to admit.) Much more vital to the tech business, nonetheless, is sector-specific information.
Observe:
Excellent news? Positive, however solely in case you are into squashy cats.
Let me clarify. When the worth of a selected commodity or safety falls sharply, it usually follows up its declines by bouncing again a little bit. If the underlying forces that drove the safety unfavorable stay in place, such rebounds usually show short-lived and never indicative of the particular “backside” of any specific buying and selling vary. That is usually known as, considerably inartfully, a “useless cat bounce,” or extra particularly, the form of modest rebound {that a} cat’s corpse would possibly handle if it hit concrete after falling from a excessive window.
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