Definition
A temporary, modest price recovery during a sustained downtrend that fails to hold, after which the asset resumes its decline and often sets new lows. The term draws on the dark idea that 'even a dead cat will bounce if it falls from a great height,' and the pattern is usually only recognizable in hindsight.
In Panel Profits
In the comic market, a dead cat bounce is a short-lived uptick in a previously declining key issue's verified FMV or auction clearing price — often on a minor, low-durability catalyst (e.g., a rumor or a single social-media mention) — that fails to reverse the underlying downtrend, with price resuming its decline shortly after.
Comic-market example
A speculative variant that has been declining for months ticks up 15% on an unconfirmed casting rumor, then resumes its decline within weeks once the rumor is denied or fails to develop into a real catalyst — a textbook dead cat bounce rather than a genuine trend reversal.
Common mistakes
Do not treat a single up week in a declining asset as confirmation of a reversal; verify whether the underlying catalyst has real durability (see Catalyst Decay / Hype Half-Life) before distinguishing a genuine recovery from a dead cat bounce.