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Bear / bearish

A trader who expects prices to fall; a bear market is a decline of 20% or more from a high.

Bearish describes a view, a position (short), or a market regime. Bear markets have sharp rallies (dead-cat-bounces and bear-traps) that punish late shorts and premature dip buyers.

The image is a bear swiping its paw downward; the opposite is the bull.

Example: the Nasdaq fell 33% from November 2021 to December 2022, a bear market with five separate rallies of more than 10% along the way.

Related: bull, bear-trap, short-selling, dead-cat-bounce

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