By: Gino Lattarulo
Well what can I say. Even the most careful people can be suckers for a sexy long shot. I mean, I am a monogamous conservative with my trading; working solely from good solid chart patterns and steady companies. But, I confess, Sirius (NASDAQ:SIRI) has been my mistress for almost seven years now. She has punished me, rewarded me, made me sweat, made me sing, and made me so mad that I swore her off for good. She has been the best single malt scotch I have ever had and has caused headaches worse than a tequila hangover on New Years Day. But, in the last two years Sirius has really made some terrific money for those who truly believed in the product. So how does the firecracker of Wall Street measure up these days? I think this girl is still smokin’ hot and the charts agree. At the beginning of May Siri plowed right the $2.00 mark and peaked just over $ 2.40 after the earnings report. In typical fashion many Wall Street analysts scrambled to adjust their price targets to avoid looking stupid for failing to do any meaningful research. Profit taking is now moving the stock down to steadier levels so it can form a new base. We can see that the price action is near the 20 day average and it may retest the $ 2.00 mark before settling down completely. If you pull up a weekly chart on Siri you will see the 50 MA starting to thread through the 200 MA, which is exceptional. The next long term resistance point is around $4.00 so unless the world actually ends in 2012, Sirius should be stretching those long legs again and continuing the climb.
NOTE: Getting into the market right now is very dicey . The leading averages seem to be holding while many stocks are selling off. Some of the bell weather stocks like Amazon (NASDAQ: AMZN) , Apple (NASDAQ: AAPL), and Google (NASDAQ: GOOG) all seem to be slipping back to support levels. Right now I am 95% in cash and avoiding buying stocks until we see where things are heading.
As we always said in the military, ” Stand By To Stand By “
Peace
