CTIX remains is a powerful rally. With the more aggressive trend-line holding up so far. Below that there is a less aggressive trend-line that has seen huge gains during this amazing year for CTIX.
I'll do a chart later to illustrate this.
Parabolic rallies generally have sharp pull-backs. This is their nature. As I mentioned before, W7 bars on average give up 50% of their range, and 100% is common. The same is true of rallies. We had two W7 bars in a row, and then even more upside with CTIX.
All I could say is Wow! But the problem is timing the end with any accuracy. The opposite of catching a falling knife. CTIX RSI was overbought since $1.03 for example, and continued right to $2.47. So that was not a good signal. The resistance line made on Thursday turned out to be good. But until proven, it was just an indicator.
For this reason I use typical price extension targets. Which I find are better for sells, whereas support and trend-lines are better for buys.
If lucky enough to see the target hit (it's a target, not a prediction) then there is a waiting period for new information during which anything can happen. More upside, sideways, or pull-back.
Declines are usually sharper than rallies with stocks, especially when the rally is parabolic, but it is risky to play declines in an uptrend, especially when news can hit at any-time as it the current status with CTIX. But profitable if you catch it right, and many traders specialize it just this. (Either as shorts, or in this case with CTIX, for lower initial entries or re-entries to a strong stock)
But with CTIX currently, news events and other catalysts are possible at any time during this clinical period. So Trading is best left to those who want small gains and have this as their plan. Whereas longs are best buying and adding at dips, and following their own longer-term strategy for taking their basis off, or profits. Either in stages or in the final event. JMO
Whatever your plan is. That is yours. But I suggest one does have a plan. That helps eliminate confusion and regret. And know if you are a trader (scalper or swing trader) or a longer-term investor (also a trader, but with long-term objectives).
Without a clear plan and decisions made BEFORE the price action, the usual result is psychological pain, poor decisions, panic sells, and so on.
I posted describing the difference between CTIX traders and CTIX longs from my perspective. Both are important for a healthy market. But I find it helpful to determine and decide in advance which group I'm in with a particular investment vehicle.
For CTIX I'm personally in the long-term investor group. But I try to post things of interest to traders also, such as charts and targets.
But one thing I suggest critical to both groups: Plan, Brief, Execute, Debrief. Then repeat.
This way one is thinking when they are calm, not reacting emotionally when the price action has them under stress.
