updated chart, page-72

Hi kates9999

My days of trading with charting are well behind me as I simply don't have the time to commit to it anymore.

You raise a very interesting point about MA's though and I actually learnt a lot of what I used to use from Daryl Guppy. His multiple moving average bands were fantastic and I had a lot of time for convergence areas of moving averages.

One thing to note about these is that you have to wait out hysteria - find a stock that moves hard then wait for the MA convergence to occur.

Now, applying that to the CNO scenario, I have to disagree with you about CNO. Firstly, I am still holding a parcel of CNO and will continue to do so I'm not trying to bag it any way, shape or form - this is a technical perspective.

My 3 exponential MA's that I used to use were;

3 - day traders
15 - holder that think they're in the for long haul but get impatient. To me this a psychological MA
35 - long term buyers - a critical MA

If the 35 turns down, I see that as a huge negative because it means support and long term buying interest is waning.

So for CNO the 3 is well below the 15 & has broken the 35 indicating day traders are probably done and dusted.

15 is steepening it's move down indicating selling from impatient holders is increasing.

35 has also turned down indicating that longer term holders are also deserting the stock.

All in all, if I were trading on MA's alone this would not be a good buy IMO.

I've now mentioned a few times that something stinks about the way this stock is behaving. The volumes in the first weeks were like nothing I've seen before. I pointed out that the churn was a concern and it turned out to be a valid observation.

Marchello