As anticipated Sirius XM Radio (SIRI) is among the additions to the Russel Indexes. The Russell published their list of additions and deletions today, June 11, 2010 shortly after 6:00 PM EST. The inclusion of Sirius XM Radio on this list sets the stage for the next step in the Russel Reconstitution schedule. Next Friday, June 18, 2010 the Russel will update the list of additions and deletions. Sirius XM meets all of Russell’s criteria to remain included.
Now that the list of additions and deletions is public many investors, who were otherwise unaware, will know that the end of the month should present a large amount of buying of SIRI Stock. The Russell purchase will not happen until June 25th, but that wont stop those in the know from beginning to bet on the Russell bump.
Sirius XM closed today at $1.01. The Russell news happens as the moving averages of Sirius XM are all converging. When the EMA’s (Exponential Moving Averages) of Sirius XM converge it has traditionally been the signal for a bullish run up in stock price. The inclusion on Russell’s list in combination with converging EMA’s sets the stage in a unique way by combining technical signals showing the stock is ready to run with forced buying that will happen over the next two weeks.
The convergence of EMA’s last December saw the stock run from $0.60 to $1.10 in 3 months. The most recent convergence was in the beginning of April when the stock ran from $0.85 to $1.20 in one month. There will be plenty for investors to watch over the coming two weeks, and readers can always come to SiriusBuzz for our weekly technical review each Saturday.
Sirius XM was added to the Russel 3000 as well as the Global Index
Russell 3000® Index shows market capitalization of U.S. broad market of $13.4 trillion, up from $10.6 trillion at this point last year. Sirius XM is among the additions.
Russell Global Index shows market capitalization of global equity market of $40.8 trillion, up from $34.8 trillion at this point last year. Sirius XM is among the additions.
Link To Russell Inclusion
Position – Long Sirius XM Radio