Decisions, decisions (SIRI)

[CabrioM3]

Spike fader can you please Explain for us laymen... Trying to learn what I can.

Thanks,
John

[dmk112]

That's what happens when a stock get bought on popularity...this thing can go back down to $3 in no time...

[spikefader]

Spike fader can you please Explain for us laymen... Trying to learn what I can.

Thanks,
John

Gaps act as very good support and resistance, depending on which side price is on. If price is below a gap, the gap will resist price when it rises to it. If price is above a gap, the gap will support price when price drops to it. Why do they act this way? Perhaps the self-fulfilling phenomenon is the reason. If traders have a common belief that gaps act act this way, the result is that a sensible trader using good judgement will sell out of a position at resistance, and buy into a position at support. A gap is just the line in the sand where many people make a decision. If there is no support at a gap when price drops to it, then it's simply support being insufficient to hold price above it....and that knowledge about a 'supposed' good support area is a bearish thing. Same thing with a gap not resisting price when it rises to it....it means a supposed good resistance point doesn't have enough sellers at it to keep price down, so this is a bullish thing.

Same thing with the Fibonacci retrace lines and the regression channel I've drawn. These lines are generally accepted as good support lines. They are good places to buy in.

If you don't employ Gap theory in your trading, I suggest you learn all about them. They are very useful and should not be underestimated.

[CabrioM3]

Gaps act as very good support and resistance, depending on which side price is on. If price is below a gap, the gap will resist price when it rises to it. If price is above a gap, the gap will support price when price drops to it. Why do they act this way? Perhaps the self-fulfilling phenomenon is the reason. If traders have a common belief that gaps act act this way, the result is that a sensible trader using good judgement will sell out of a position at resistance, and buy into a position at support. A gap is just the line in the sand where many people make a decision. If there is no support at a gap when price drops to it, then it's simply support being insufficient to hold price above it....and that knowledge about a 'supposed' good support area is a bearish thing. Same thing with a gap not resisting price when it rises to it....it means a supposed good resistance point doesn't have enough sellers at it to keep price down, so this is a bullish thing.

Same thing with the Fibonacci retrace lines and the regression channel I've drawn. These lines are generally accepted as good support lines. They are good places to buy in.

If you don't employ Gap theory in your trading, I suggest you learn all about them. They are very useful and should not be underestimated.

Thanks, So the chart you provided shows possible support around 5? Am I reading it correctly?

Any books on gap theory you can suggest, websites?

I sold my Siri holdings for an 84% gain, that stock with this market looks
pretty scary to me! I'll pick up my postion later, I am sure at a much cheaper pps.

Thanks
John

[spikefader]

Thanks, So the chart you provided shows possible support around 5?........Any books on gap theory you can suggest, websites?...sold my Siri holdings for an 84% gain...

Yep, support around 5.00 - combined gap, FIB, and channel support. The more technical support, the more likely there is for a good and tradeable bounce. No guarantees of course, and do your own DD. I'll be looking to trade it, and I'll be using a tight stop with it to minimize pain if I'm wrong. I won't be a long-term bagholder of SIRI.

Oh, and nice trade!

[Websman]

Boy am I glad I cashed out my SIRI profits! I'd be kicking myself if I would have held on.

Let's get this baby down to $5 so we can make more money!

[spikefader]

Ya, good job Webs. Wisdom and excellence!
Here's just a couple thoughts for today on SIRI. I'll be waiting for it to prove itself before I put my toe in the water.

[Gatorman]

Ya, good job Webs. Wisdom and excellence!
Here's just a couple thoughts for today on SIRI. I'll be waiting for it to prove itself before I put my toe in the water.

It sure does look like it headed for a gap fill around $2.79 doesn't it!

[Websman]

It sure does look like it headed for a gap fill around $2.79 doesn't it!

I have a buddy that's holding 5,000 shares. I hope for his sake it doesn't go down that far. But, I hope for my sake it does, so I can buy 5,000 shares for myself.

[New-born baby]

Wake up SPOCK!

Spike and Spock,

Let's change your perspective on SIRI from Long to Short. This has to be the safest stock in the world to short. WHY?

1. No dividend to cover.
2. Price to Sales at about 800! That's lunar in scope! It can't stay up there forever.
3. The cute little dog commercials that got all those working women to invest in SIRI have quit playing. Christmas is over. This thing ought to report "losses" very soon, shouldn't it?

Webs, you are a great guy, but a SIRI long position makes me shudder for you. I'd rather see you invest in Jim Cramer's advice. Remember MM's mantra: earnings, earnings, earnings. As a friend let me suggest that you don't buy stocks that don't have them.

[Runner]

I like this SIRI chart!

[Websman]

I would not attempt to short SIRI. It may keep going down, but any little bit of good news will send this dog shooting straight back up. I will keep watching and waiting.

We're going to see phenominal growth for Sirius this year. Especially towards the end of the year. Howard Stern will bring in tons of young freaks who will pay good money to hear his filth. Of course, I must admit that I kind of like Howards junvenile nonsense myself, especially his show on E-TV. Also Ford and Daimler/Chrysler will be doing factory installs. It's just a matter of time before Sirius exceeds XM in subscribers. Sirius is quickly becoming the hippest and hottest gadget, next to the IPOD for the under 30 crowd. Just watch and see what happens.
I have a friend who sold his SIRI shares when he found out that Stern was coming onboard and he missed the great profit he would have made. His portfolio was flat for 2004, while my returns went ballistic and I became huge. He let his personal disgust of Stern get in the way of his chances of making a profit. Look for another big run on SIRI again towards the end of the year.

For now though...I want to see this dog drop to $3!

[CabrioM3]

In a bear market situation, like we are in today, this stock has nothing to offer! What is a stock but a buble anyway especially when companies go broke, exec's go bad, and the market picks up momentum to the downside, taking all stocks with it?

Are not all stocks bubbles? Some like Siri more than others? Okay Howard Stern, NFL(which turned out to be a big non event) and oh nothing else big! So we should expect this stock to go to the moon like Google or Tasr? Come on folks at least they have cash and profits out the roof! And Siri --- can't even pay they're employees!


Reality check

[spikefader]

In a bear market situation, like we are in today, this stock has nothing to offer! ............ Reality check

Here's a reality check for SIRI bears. This chart whispers higher prices to me. It's just a matter of when. Sure, things can get ugly, like my previous chart, but let's not underestimate the potential that is possible. Sure it's possible it can go broke, but sure it's possible something magical and unexpected will happen. Wouldn't be the first time such a thing happens. Bubble? Sure, why not. That's a wonderful phenomenon of the market. Why not exploit it? Bubbles are great!

[Websman]

I have already exploited SIRI and will do it again! All I need is a good entry price.