Years ago I lived in southern California. I remember walking home one day from baseball practice and tripping over my own two feet. I thought it was odd and I felt clumsy but, picked myself up and continued home. When I arrived at home, my mother was trembling with fear and the house was in disarray. I thought we had been robbed. My mother exclaimed "Are you alright?" I said of course I am, why wouldn't I be? She said we had just had an earthquake! I guess I missed it.

Apparently, history has repeated itself. The long awaited short squeeze that had promised to bring SIRI investors to the pot of gold at the end of the rainbow and have shorts scrambling to cover before they lost all, apparently has already happened!

I cannot be sure of exactly when the event took place. I do know, that on 1/30/2009, there were 271,931,355 shares of SIRI common stock reported to have been held short and that there would be an astounding 11 days to cover based on average daily volume. NASDAQ now reports that as of 2/13/2009, there were only 158,732,676 shares held short and that the days to cover were now just slightly over one.

While it could signal that the street is starting to believe that there is still hope for Sirius XM, the most probable scenario is that the bondholders who were short the stock covered when the bonds were redeemed or, a combination of both.

Position: Long Sirius XM