vcr chart etc for those interested., page-29

The suggestion that charts take no account of announcements is a curious one. Also suggesting that in particular to biotech stocks is equally curious.

I make the following points.

I said the other day a chart is only a graphic representation of market sentiment. No more, no less.

If sensitive information about a company is leaked about a company, or rumours are spread, this may have an influence on the price -ie the market sentiment.

One thing you can say about many speculative stocks is that they leak information, or their staff do, or relatives of their staff do. It happens often.

Here lies the relationship between charts and announcements. One only has to look at the chart/price movement of AMP prior to NABs clumsy bid for 15% of its stock. The chart was illustrating the strong shift in market sentiment towards AMP inthe days prior to this. Similar activity can be seen in the charts of many of the spec stocks including VCR prior to the release of announcements.

My point is that the relationship is about events that affect market sentiment, and company announcements often do that, and there is often anticipation of these events as well.