Cem Karsan Explains What a Dead Cat Bounce Actually Is

Cem Karsan takes a worn-out trading adage and gives it a real mechanism. A dead cat bounce, he says, is what happens when the macro is weak and things are bad, yet price moves up anyway on flows, hedges decaying and dealers buying stock back. The practical rule follows: if it's weak into bad macro, you sell into it. His bigger thesis is that this decline most likely plays out like 2000, slow and choppy with supportive flows while the weak stuff underneath gets weaker. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 The pattern around every big event 00:40 Why skew comes down afterward 01:15 The flows that drive the move back 02:10 When it keeps going versus fades 02:50 Fading at the 20-day 03:20 What a dead cat bounce really is 04:00 Sell into weak macro 04:40 Why Fridays are dangerous 05:20 The wall of worry and support 06:10 Why this feels like 2000 #tastylive #cemkarsan #kaivolatility #deadcatbounce #flows #dispersion #techselloff #volatility #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.