Ebos Limited EBO

**macduffy** · 06-05-2020, 11:09 AM

Originally Posted by Snow Leopard

EBO was one of my big holdings, which I sold out of completely when peak gloom arrived late March as it was holding up well and used the proceeds to buy some bargains.

Now I have sold many of those and in theory it is time to buy my EBO back and spend the extra on Wine, Chocolate and other essentials.

But I hesitate...

Why? Have you lost your taste for wine, chocolate and other essentials, SL?

**peat** · 06-05-2020, 01:22 PM

Originally Posted by Baa_Baa

I... as the DCB turns over,

I have said elsewhere this is no Dead Cat Bounce. We have retraced over 62%
In my book over half of retracement and over six weeks in duration means it is not small or brief (qualities defined by Investopedia).

**Biscuit** · 06-05-2020, 02:07 PM

Originally Posted by peat

I have said elsewhere this is no Dead Cat Bounce. We have retraced over 62%
In my book over half of retracement and over six weeks in duration means it is not small or brief (qualities defined by Investopedia).

Limitations of a Dead Cat Bounce
As mentioned above, most of the time, a dead cat bounce can only be identified after the fact, which means that traders that notice a bounce after a steep decline may think it is a dead cat bounce, when in fact it is a trend reversal - that is, instead of being a short-lived bounce, the rally may signal a prolonged upswing. How can investors determine whether a current upward movement is a dead cat bounce or a market reversal? If we could answer this correctly all the time, we'd be able to make a lot of money. The fact is that there is no simple answer to spotting a market bottom. Investopedia

**HKG2301** · 06-05-2020, 02:09 PM

Originally Posted by peat

I have said elsewhere this is no Dead Cat Bounce. We have retraced over 62%
In my book over half of retracement and over six weeks in duration means it is not small or brief (qualities defined by Investopedia).

Yes, but you'll agree we (and the US markets) seem to have stalled out at the 618 retracement. And there are many new & scary aspects to this particular crash that may blur the edges of Investopedia's definition?

**HKG2301** · 06-05-2020, 02:12 PM

Originally Posted by Biscuit

Limitations of a Dead Cat Bounce
As mentioned above, most of the time, a dead cat bounce can only be identified after the fact, which means that traders that notice a bounce after a steep decline may think it is a dead cat bounce, when in fact it is a trend reversal - that is, instead of being a short-lived bounce, the rally may signal a prolonged upswing. How can investors determine whether a current upward movement is a dead cat bounce or a market reversal? If we could answer this correctly all the time, we'd be able to make a lot of money. The fact is that there is no simple answer to spotting a market bottom. Investopedia

For me it's the shape of the bottom. Seldom (never?) has there been such an extreme sell-off, followed by a v-shape bottom, then continue as if nothing had happened. Especially this time around. The (global & local) economic damage from Covid is going to grind on for quite some time, don't you think?

**kiora** · 06-05-2020, 08:31 PM

Originally Posted by HKG2301

For me it's the shape of the bottom. Seldom (never?) has there been such an extreme sell-off, followed by a v-shape bottom, then continue as if nothing had happened. Especially this time around. The (global & local) economic damage from Covid is going to grind on for quite some time, don't you think?

Yes, time for stock pickers,not all companies are equal.

**peat** · 06-05-2020, 08:36 PM

Originally Posted by HKG2301

Yes, but you'll agree we (and the US markets) seem to have stalled out at the 618 retracement. And there are many new & scary aspects to this particular crash that may blur the edges of Investopedia's definition?

any half decent definition applies all the time.
every crash is scary and seems new at the time. if it wasn't scary people wouldn't panic sell.

and yes the increased volatility around the 61.8% fib level is a sign of uncertainty.

given that we are now clearly talking about 'The Market' and not Ebos I will post in another thread (Dead Cat Bounce thread) what I think the SP500 will most likely do.