Good question & sorry for such a late reply as I’m catching up from notifications going back to the weekend. A long entry on CURE (when this post was made on Friday) would be what I refer to as trying to catch a falling knife as it has been & most importantly, still was in free-fall on Friday. In this post, I made the case for a bullish trend reversal in the stock but at the same time, stated that there weren’t any buy signals yet. As such, it would have been an aggressive trade entry on Friday without any decent technical evidence that the ETF has bottomed or at least appeared to be in the process of possibly bottoming, merely on the expectation that the ETF would reverse soon.
The attractive risk-to-reward ratio that I was referring to was primary a combination of two factors: 1) My expectation for a bounce in the broad market from that point, which would most likely cause the healthcare sector, a component of the S&P 500, to rally along with it and 2) the fact that based on my read on the chart, I thought the max. downside from that point (approximately 3%) was minimal compared to the upside potential of 10-30%.
Hope that helps to clarify but please let me know if you have any additional questions. Since then, CURE rallied right up to that 44.14 first target & so far reversed there as would be expected on the initial tag of a first target. Where it goes from here will largely depend on whether or not QQQ & SPY can take out those resistance levels that they once again tested & failed at today or not.