What do you mean by 'Dead cat bounce'?

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The term is used with respect to stocks in continuous downtrend. Usually the stock bounces back for a brief period only to give hopes for the bulls. The bounce is short lived and the stock resumes to grind down. The bounce in the stock in such cases is called a dead cat bounce.

A dead cat bounce is a recovery in the price for a very sort duration, of a declining stock (which is declining from a very high price).

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Dead cat bounce is term used in the stock market to describe a brief market upmove/uptrend after a prolonged fall. When the stock prices fall continuously, traders buy stocks at the lowest prices hoping for an upmove in prices. As the traders are buying too soon, the prices will rise temporarily, only to decline once again.

The phrase dead cat bounce means, even a dead cat will bounce if dropped from a great height.