Re: One of the strategic principles for success in the stock market is to
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18 May 2025, 04:15
OFFICIAL EXPLANATION QUESTION #1
C
This is a question that asks for the answer choice that is not supported by the passage. That means that the four wrong answers will contain statements you can infer from the text. A solid reading of the text gives you all you need to know about the definition and characteristics of a "dead cat bounce" in order to eliminate choices (A) "usually followed by another drop-off that surpasses the previous low," (B) "before reinvesting in a rapidly falling stock," (D) "occasional use in describing other areas," and (E) "one or more small upward bumps." Choice (C), on the other hand, is out of scope and is therefore the correct answer. Nowhere in the passage does the author discuss the strategies that sellers should use to take advantage of a "dead cat bounce."