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"Possessed" Sorcerer will summon more Daemons and/or use Cursed Earth (3++ for Tzeentch units) if available to also provide Warp Talons a safe place to land if desirable; the other Sorcerer will assist keeping the Obliterators alive if Biomancy is favorable.

HQ:

Sorcerer (ML 3: Malefic Daemonology) Prophet of the Voices, Spell Familiar

+ 18x Possessed

Sorcerer (ML 3: Tzeentch, Biomancy) MoT, Spell Familiar

+ 9x Thousand Sons (Champion has meltabombs) w/ Icon of Flame, Rhino

Fast Attack:

9x Warp Talons w/ MoT

1x Heldrake

Heavy Support:

1x Defiler

3x Obliterators w/ MoT

I kinda like it. Id go for mauler/forge fiends over the defiler tho.

Not sure even a 3++ makes talons worth it.. heres hoping

Rather than potentially sacrificing Possessed, I added some cultists; exchanged the Defiler for a Maulerfiend; and dropped the Icon of Flame from the Thousand Sons.

HQ:

Sorcerer (ML 3: Malefic Daemonology) Prophet of the Voices, Spell Familiar

+ 18x Possessed (Troops)

Sorcerer (ML 3: Tzeentch, Biomancy) MoT, Spell Familiar

+ 9x Thousand Sons (Champion has meltabombs) w/ Rhino (Troops)

Troops:

18x Chaos Cultists (with the eagerness to die)

Fast Attack:

9x Warp Talons w/ MoT

1x Heldrake

Heavy Support:

1x Maulerfiend w/ lasher tendrils

3x Obliterators w/ MoT

This second list is certainly superior to the first.

I don't feel like there is a single useless upgrade. Nice and lean.

HQ:
Ahriman (Tzeentch, Pyromancy), joins Terminators
Sorcerer (ML 3: Malefic Daemonology) Prophet of the Voices, Spell Familiar

Elites:
4x Chaos Terminators w/ MoT (2x Power fists and Combi-meltas), Land Raider w/ Dirge Caster

Troops:
9x Possessed w/ Rhino
9x Thousand Sons w/ Rhino

Fast Attack:
1x Heldrake

Heavy Support:
2x Vindicators
1x Maulerfiend w/ lasher tendrils

As a general rule of thumb, I don't give dedicated assault squads rhinos. They're not assault vehicles, and they are only AV 11. Cheap, yes, but think about all the points you'll lose from half the squad, or more, dying as they run across the board. I would drop the terminators and give the possessed the land raider, if you really want to take possessed.

Also, check this out http://www.dakkadakka.com/dakkaforum/posts/list/607867.page

I agree with the Possessed and the Land Raider which would be an ideal delivery platform. The consideration of transports for this army list version is to utilize Infiltrate for units in Dedicated Transports.

If going second on the first turn, the Possessed in Rhino will likely be out of LOS (behind the Land Raider if necessary) as they don't receive their table ability yet or Smoke Launchers. Afterwards, they can disembark on Turn 2 and begin summoning Daemons for a turn behind the tank(s) and hope to receive a favorable table result when positioned within charge range. The Rhino isn't intended to deliver them directly into combat, but to provide some protection against an alpha strike and then support where needed.

I would take Daemonic Possession on the Vindicators if I had the points. I could always reduce the infantry in size to favor AP2 over AP3.