Technical analysis is not very good at accounting for news before it happens, but is very good at looking at the results of that news. Friday evening, after I called a short term top in Sirius XM at $2.60, Liberty Media filed to remove its application for de facto control and replaced it with an application for de jure control. Of course, this changes the dynamics a bit.
While my intentions were to get a technical update up this weekend prior to the action today, my schedule thought differently, though I was able to get a piece up about the news. I did not even get settled in until quite late last night, and doing the technical update had to take a back seat to other things this morning. Sometimes life simply gets pretty busy!
Obviously the new news about the Liberty filing will need to be digested, and this news, a positive development, will erase my call on $2.60 being the short term top. We will now need to see how the street digests this news today, and look at the possibilities after the close.
In essence Liberty has announced its intent to take control of SiriusXM by gaining a position that is greater than 50%. This can allow the equity to put in a small run on the news that we can look more deeply at after the session ends. Stay Tuned.