Father:
Father said: "Dead cat bounce does not seem appropriate with a volume of 3mil today and high volme for 3 consec. days"
USA320Pilot comments: Father, from a technical perspective a "Dead Cat Bounce" is a temporary recovery from a prolonged decline or bear market, after which the security continues to fall.
Well the UAIR decline has not be long and sistained because it's a new listing on the NASDAQ. There always tends to be a lot of talk about "investor capitulation" when a security continue to fall, but what is really meant by capitulation in Wall Street terms?
In Wall Street the term refers to the time when investors (all of them), which really doesn't excist in UAIr because there are so few owners of the stock, sell all their stock because they simply want out. The sole motivation for trading is to get out of the market and seek shelter.
With UAIR a new NASDAQ security listing, with little real activity except for employee retail volume (until this week), it is unlikely there is enough sentiment to have a "Dead Cat Bounce" because there are very few investors, on a relative basis, that own the security.
No, today we likely saw the stock under accumulation by speculators who are betting there will be TA's between labor and management in the not-so-distant future.
Respectfully,
USA320Pilot