When is a short term decline a signal not to enter long?

Lately it seems that short term stock traders would do well to have a psychology degree. Last Friday's scan revealed CTIC as a potential buy. Why, oh why was this a buy? Sure it was in the top percent of recent performers, but it was clearly on the way down. Yet, stocks on the way down eventually either disappear or start going up.

CTIC should not have been a buy since it had fallen significantly from it's recent high. For all of the top half year RSI stocks, I'm disregarding any stocks that are 5 percent or more below the month's high closing price. The results are friendlier and less prone to be in a massive sell off. When a stock's price falls drastically, short term long buyers are in a frenzy to sell the stock, and the short buyers are happy, so momentum is likely to continue down. The following stocks appear on the down but not out scan:
DFZ, BARRY R G CORP (Google Yahoo Earnings Chart) 
HTE, HARVEST ENERGY TR (Google Yahoo Earnings Chart) 


The following stocks all made a 4% or move up today and all of these stocks have a strong half year RSI:
AP, AMPCO PITTS CP (Google Yahoo Earnings Chart) 
ARGN, AMERIGON INC (Google Yahoo Earnings Chart) 
BTJ, BOLT TECHNOLOGY (Google Yahoo Earnings Chart) 
CRYO, CRYOCOR (Google Yahoo Earnings Chart) 
DRYS, DRYSHIPS INC. (Google Yahoo Earnings Chart) 
GMO, IDAHO GEN MINES I (Google Yahoo Earnings Chart) 
LOCM, LOCAL.COM CORP (Google Yahoo Earnings Chart) 
MVIS, MICROVISION INC (Google Yahoo Earnings Chart) 
NVEC, NVE CORP (Google Yahoo Earnings Chart) 
USAT.OB, USA TECHNOLOGIES (Google Yahoo Earnings Chart) 

The following stocks had 3 days of continuous strength:
ARSD.OB, ARABIAN AMER DEV (Google Yahoo Earnings Chart) 
ASI, AMER SAFTY INS HL (Google Yahoo Earnings Chart) 
BBGI, BEASLEY BRDCST GR (Google Yahoo Earnings Chart) 
BBOX, BLACK BOX CP (Google Yahoo Earnings Chart) 
BCON, BEACON POWER CORP (Google Yahoo Earnings Chart) 
BYM, BLACKROCK INS MUN (Google Yahoo Earnings Chart) 
CCOI, COGENT COMM GROUP (Google Yahoo Earnings Chart) 
CKNN, CASH SYSTEMS INC (Google Yahoo Earnings Chart) 
CLCT, COLLECTORS UNIV (Google Yahoo Earnings Chart) 
COCO, CORINTHIAN COLLEG (Google Yahoo Earnings Chart) 
CPLA, CAPELLA EDUCATION (Google Yahoo Earnings Chart) 
CVTX, CV THERAPEUTICS I (Google Yahoo Earnings Chart) 
EGOV, NIC INC (Google Yahoo Earnings Chart) 
EPD, ENTERPRISE PT UTS (Google Yahoo Earnings Chart) 
EPIC, EPICOR SOFTWARE (Google Yahoo Earnings Chart) 
EXTR, EXTREME NETWORKS (Google Yahoo Earnings Chart) 
FNBP, FNB CORP (Google Yahoo Earnings Chart) 
GEX, GLOBIX CP POST BK (Google Yahoo Earnings Chart) 
GMO, IDAHO GEN MINES I (Google Yahoo Earnings Chart) 
GNSS, GENESIS MICROCHIP (Google Yahoo Earnings Chart) 
HWK, HAWK CP CL A (Google Yahoo Earnings Chart) 
IFN, INDIA FUND (THE) (Google Yahoo Earnings Chart) 
IKN, IKON OFFICE SOLUT (Google Yahoo Earnings Chart) 
INNO, INNOVO GROUP INC (Google Yahoo Earnings Chart) 
KEA, KEANE INC (Google Yahoo Earnings Chart) 
KOMG, KOMAG INC (Google Yahoo Earnings Chart) 
LOCM, LOCAL.COM CORP (Google Yahoo Earnings Chart) 
MGRC, MCGRATH RENT CP (Google Yahoo Earnings Chart) 
MWIV, MWI VETERINARY SU (Google Yahoo Earnings Chart) 
NM, NAVIOS MARITIME (Google Yahoo Earnings Chart) 
NOIZ, MICRONETICS INC (Google Yahoo Earnings Chart) 
OIIM, O2MICRO INTL LTD (Google Yahoo Earnings Chart) 
PLT, PLANTRONICS INC (Google Yahoo Earnings Chart) 
PPC, PILGRIMS PRIDE CP (Google Yahoo Earnings Chart) 
SA, SEABRIDGE GOLD IN (Google Yahoo Earnings Chart) 
SMA, SYMMETRY MEDICAL (Google Yahoo Earnings Chart) 
SOEN.OB, SOLAR ENERTECH CO (Google Yahoo Earnings Chart) 
SPEC, SPECTRUM CONTROL (Google Yahoo Earnings Chart) 
SRVY, GREENFIELD ONLINE (Google Yahoo Earnings Chart) 
T, AT&T INC. (Google Yahoo Earnings Chart) 
TLB, TALBOTS INC (Google Yahoo Earnings Chart) 
TMTA, TRANSMETA CORP (Google Yahoo Earnings Chart) 
TNOX, TANOX INC (Google Yahoo Earnings Chart) 
UIL, UIL HLDGS CP (Google Yahoo Earnings Chart) 
USMO, USA MOBILITY (Google Yahoo Earnings Chart) 
VAR, VARIAN MED SYS IN (Google Yahoo Earnings Chart) 
VSCP, VIRTUALSCOPICS IN (Google Yahoo Earnings Chart) 
WPL, WP STUART & CO LT (Google Yahoo Earnings Chart) 
WRNC, WARNACO GROUP INC (Google Yahoo Earnings Chart)