I am still operating mobile, so the charts will not accompany this piece. The action today was volatile and it all happened on below average volume. This is an indication that the equity does not want to tumble down, but is willing to test lower if the opportunity presents itself.
If SiriusXM gives out 2013 guidance and announces a share buyback tomorrow, I can see this equity push toward 52 week highs. If the call is absent either of these, the peak may be at $2.95. This call will establish a new baseline to work from.
The overall story on SiriusXM is bullish. I do not worry about the downside unless we break into the $2.60’s. because the street is still in Sandy recovery mode, there old be some interesting days. There was a lot of damage from this storm and events like this always make people think twice, and take stock in what priorities are. It will take some time to see people willing to hop back into the market.
What we want to watch for is the news and the volume. I would hesitate to take action in trading unless you see a ten cent move on heavy volume. It is unfortunate that a good call may be dragged down by the storm, but these realities are part of the market.