Giant Trades

What do you guys make of the giant blocks that went off today?

You forgot one, Stern!

Guys there is a ton of blood on the streets right now. Over the past few days the price action on every asset class has been all f'd up. Wierd things that don't make sense were happening. Gold was going down when the market was crashing, oil goes down gold goes up, etc. People are selling stuff and trying to liquidate all their assetts. It smells like capitulation to me. I think SIRI stock has capitulated over the last couple of days, and I think today's action showed that it was done. The market was down big today in the morning and started selling off more a few hours into the session. At that time 11ish. SIRI was around .80 and then started to move towards the .70's. I sold half my position at .795 assuming that there was going to be big margin sell offs going on until around 2 or 230. This never happened the stock hit .77 and started coming back. It sat around .82 or .83 at around 2 and I felt like we finally saw a bottom in the stock for so I bought back in and took a few hundred dollar loss. However I did enjoy the .15 cent or so ride up from there.

In summary:
I think SIRI is done bleeding. Most if not all of the people who bought on margin, and don't have the money to hold the stock have been liquidated. There was enormous pressure on the VIX today and the market was down 450 points and SIRI shot up. I think we have a good floor now for the stock and we should be back up over a dollar tomorrow.

However one point to be made and be wary. This stock traded down to .67 cents or something like that. Millions of shares were bought there, and a lot of people are going to take profits on this stock on the way up. I think we see a lot of resistance, but now we know where the bottom is.

Good luck

I am pleasantly surprised at the price action today. With Business Week publishing articles saying that Sirius XM has many very difficult hurdles to jump through, and with banks and brokerages tanking, Sirius XM stock went down, but seemed to find a resting point for most of the day in spite of the market's fall (for the 2nd big drop in 3 days). Then, at the end of the day, big block trades seemed to come in to take the stock higher. There is obviously some desire by big money to either get into this stock for the first time, or to increase their holdings. Not bad at all considering all the bloodletting in the market - especially in the stocks of companies Sirius XM might potentially have to go to for refinancing for February 2009, etc. I am more optimistic about the stock price today than I have been in the last few weeks. I think when (hopefully "when") the stock price goes over a dollar, people will breath a sigh of relief, stop worrying about delisting, and create even more demand for the stock. Then, hopefully, Sirius XM will put on a big showing with their October 6 offerings and we will all be able to get a good night's sleep.

The giant trades were definitely strange. But, even stranger when taking into consideration that the stock rallied almost 10 cents afterwards.

If this was simply a trade between institutions, then there would be no reason for a rally. There must have been some strong buying from a source which is not usually present. This happened yesterday as well.

IMO it seems to be a concerted effort, within the last half hour of the trading day to bid up the stock price. This would lead me to believe that the buying is being done by somebody with some sort of a stake in the company, who does not mind over paying a bit.

It looks like it could be an outside investor looking to get in fast, or simply short covering in advance of the new naked short rules. Tomorrow will tell. If the same thing, or something similar happens, then it would be a buy signal, as it may mean that somebody is trying to make a play for the company.

If nothing happens and the shares just flat line, then I would say it was a short cover.

A short covering is definately a possibility, considering the new SEC rules that were released today. :thumbup:

Tomorrow should be interesting.