A situation in which investors enter long positions near the top of an up cycle. When the market unexpectedly reverses, buyers begin to sell their way out of their losing positions creating downward price momentum and panic selling among the remaining longs still in the market. When the selling complete, the market often resumes its upward trend. Compare to bear trap. See Bull Squeeze; Bear Squeeze; whipsaw.
Browse by Subjects
See All Related Terms »
direct materials cost
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):