Terminology To Offend Or Titilate

"Dead Cat Bounce"

"Sucker's Rally"

"Bull Trap"

These terms all apply to market upswings that have little or no fundamental economic or financial support. The stock market moves on valuation and sentiment, and sometimes one weighs more heavily than the other, sometimes at the wrong time.

Cat fans don't like the imagery of the first term, and most folks don't like to be thought of as fools, and investors who play to win hate to be caught on the losing end. But a ton of investors have bought in during a Dead Cat Bounce, a Sucker's Rally, or a Bull Trap. Especially in recent years.

Make long-term investments with money you can afford to go without for many years, and buy shares of companies you think are solid financially and will either share their profits, grow their business, or both.

Make short-term trades with money you can afford to lose forever. Buy shares of stocks you think will go up. Period. And try to avoid buying during an uptick that turns out to be a Dead Cat Bounce.