hedge funds manipulate stock in secret, page-117

Hi Orga,

Let's just take one example:

I said:

**"Centro, on fundamentals and on technical evidence, deserved to be shorted......."

You asked "Why?"

I hate to go over old ground - however I shall. To keep this brief, I'll review the technical evidence which suggests that CNP was a "short".

1. Since the end of May 2007, CNP had been in a clear down trend.

2. Between January and July 2007, CNP had been range trading between about $8.30 and $10.00 and had formed a clear M shaped pattern.

3. In July 2007, CNP broke clearly below the middle trough of the M at about $8.30. This is a clear double top formation completed. A clear sign to sell out or sell short.

4. In March, 2007, the weekly MACD on CNP had a negative cross-over. A clear signal that this is a stock to be wary off - and certainly not a stock to be buying.

5. In May, 2007, CNP hit a new high. This was not confirmed by a new high on the weekly MACD. In fact, the weekly MACD remained negative. This negative divergence was a clear warning that this stock was probably going to fall.

6. In May 2007, as previously noted, CNP hit a new high. This was not confirmed by the weekly On Balance Volume Indicator. Another negative divergence giving a clear warning that this stock was probably going to fall.

7. In June, 2007, on a weekly chart, the DMI- crossed above the DMI+. This negative cross-over was a a trend reversal signal on an intermediate basis.

These are clear and unambiguous signals.

Rarely does one get so many clear and unambiguous signals regarding the trend of a stock. A professional investor, playing both the long and short sides of the market, would see it as his clear business duty to go short on such a stock. Regular retail investors should have taken such signals as time to protect themselves in whatever way they deemed prudent. (There are various ways of doing this. If one is concerned about capital gains tax implications, then buying long dated put options on CNP might have been one simple way of taking some protection.)

I hope this satisfies you regarding one small part of the many questions you have asked of me.

Until similar clear and unambiguous signals occur indicating a reversal of the down trend in CNP, I believe it would be unwise to invest money in CNP. Just my opinion.

These signals could occur soon. I'm not saying that CNP won't turn around or can't turn around. I have no opinion about the prospects of CNP. But right at this moment in time, it is my opinion that money might be better placed elsewhere.

I'm sorry if this does not accord with your opinion. Its just how I see it.

Cheers
Red