If SIRI was $8 I'd probably short the darn thing... It's not worth $5 yet, even at the high range (getting close to that being the high area though, another quarter of buybacks or so and continued performance, but I see $5 high range around March of 2015, $4.85 around Jan op/ex).
Regarding "build a cash position" it's typically taken as "sell here, and hold your cash to buy lower." There is no way anyone would suggest building a cash position by like... collecting up deposit bottles and bringing them to the store or putting away 15% of one's paycheck for a couple weeks for that.... big buy.... Build a cash position means SELL HERE and HOLD IN CASH.
Midas suggested build a cash position at 3.16. He's suggesting for trading purposes and if one was trading, 3.16 was where you SPEND CASH and BUY not SELL and HOLD CASH. It's pretty simple and the massive move in the other direction was the opportunity. I think it goes back to recent highs, though nobody would be blamed for taking 10% on a short term trade here, or hell, over 100% on short term near strike options. Who the hell trades out at 3.16 looking to buy under $3 in 3 or 4 months? Trying to scalp 5% on the short side in a third of a year? Maybe? On a speculative trade? Makes no sense at all. None.
The correct call was "buy" either for the long term investor or the short term trader, at 3.16. It's hit the short term "sell" area for the trader and it's over the 50 day (but on it) so it may be prudent for the long term buyer to wait and see how it behaves or simply buy the 50 here if they don't want to wait.
20 day just turned up hard and will rocket up sharply towards the end of the week without changes.
50 day is on a slow crawl down 0.25 per day. I'd expect a retest of highs or a drag here. Either or it has 10+ trading days before it would glide slowly into the 100.
The 100 day is uptrending a tiny bit but will flatline here soon, end of week.
And assuming prices stay at 3.50 area the 200 will turn up by the end of the month.
Previous support line break happened at 3.50 on 9/30. That line is now at 3.60 resistance. Good old half cent a day resistance / support SIRI likes to exhibit. 8 to 10 days for that line.
Current snap back has resistance at 3.525 or so. 1 cent per day slope. Horizontal resistance 3.55
If I were a betting man and I was looking to sell what I bought at 3.16 for max profit I would choose 3.54 to be safe on a short term trade.
I figure it pulls back from there a small amount and offers a buy at 3.45 or so again... the 50 day.
I think a lot of people got really screwed by this recent pullback and bailed (SIRI *and* general market). I always get a few messages from SIRI people saying they sold out on pullbacks like this (although getting less and less as time goes on... guess there are only so many left :P ) and their reasoning never really makes sense. Lot of made up BS and conjured demons that don't exist.
