this post was submitted on 15 Oct 2024
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[–] Semi_Hemi_Demigod@lemmy.world 93 points 15 hours ago (18 children)

This chart looks like it came straight out of an economics textbook with the caption "An example of a dead cat bounce"

[–] givesomefucks@lemmy.world 63 points 14 hours ago (7 children)

It looks like it because the Y axis doesn't start at zero.

If it went to zero, then yes that would be a textbook example.

When we had to print stuff out it could be defended, but even then I'd like it to start at zero and show a break to jump up.

If being zoomed out to zero means it erases the change being shown, then that matters. Not zeroing the y axis can make anything look crazy.

I dunno, I'm a stats nerd, I'll rant about it every time I see it.

[–] EatATaco@lemm.ee 33 points 14 hours ago (3 children)

There is nothing about "the dead cat bounce" that requires it to going to zero, only that it be a long term falling pattern with a brief uptick at some point. . . which we're arguably seeing today.

However, the real problem is not so much the Y axis, as this is extremely typical of ticker views, but the X axis, as this is "downward trend" is being viewed over just one day. It hides the fact that the stock is up 50% in in the last month. I doubt Trump is sweating this drop too much.

We're once again seeing how easily manipulated lemmy users are, and how little they actually look into anything themselves, or how quickly the rush to conclusions about things they don't understand.

[–] GreyEyedGhost@lemmy.ca 1 points 10 hours ago

This was kind of my opinion. I don't pretend to know a lot about stocks, but when I look at a 1Y view and see the stock had doubled, and like you said a 50% increase in the last month, this looks less dramatic. I don't doubt it has something to do with a negative reaction to his latest rally, but I'd wait at least a day or two before I assumed this was a major setback for his stocks. Obviously, I'm not day trader material.

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