SIRI Watch

Sirius XM Radio Inc. (SIRI), the satellite radio broadcaster, is trading 3.5% above Friday's close on higher volume and a collection of bull signals. The move is unbuttressed by news.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
SIRI $1.08

Volume is running nearly 30% above Friday's with 90 minutes left in the trading day. I speculate that the stock is being accumulated in anticipation of earnings before the markets open on Aug. 5.

SIRI is one of those really great technological ideas that didn't quite live up to its promise, and like many tech start-ups of the 1990s, it peaked at $69.44 in 2000, and by February 2009 was trading for 5¢.

Over the past three months six months the stock has traced a gentle uptrend, recording two higher highs and two lower lows. A break past $1.25, the high set on May 3, would produce yet another higher high.

The price for five days has been trading above the 20-day moving average. However, volume is about a third that shown at the culmination of the last rise.

Reversal Levels

• $1.25, +15.7%
• $1.12, +3.7%
• $1.08 <== You are here.
• $.97, -10.2%

I like SIRI as a short-term bull play between now and earnings. Given the unimpressive nature of the company's fundamental performance -- earnings were 1¢ last quarter, nothing the one before that, and losses prior -- I would be nervous about holding it through the Aug. 5 announcement.

However, it must be said that earnings are trending in the right direction for bulls, although at the pace of a snail who drank too many Bloody Marys for breakfast while watching the World Cup at the neighborhood sports bar.

Not a runaway performer. Sort of like the French team.

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Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.