This Is Why You Should Look For Multiple Signals
Both Sirius Satellite
Radio (SIRI) and XM satellite radio (XMSR) are overvalued. They are
too expensive. CBS MarketWatch says: “Analysts also see nothing but red
ink ahead for XM.” Needless to say, XMSR gapped down at the open.
09:54:12 (From TradersWire)
| Action | Symbol | Order Type | Setup | Stop | Current Price |
| Buy | XMSR | Market | Oversold | 37.64 | 37.86 |
Although I stated “oversold” above, actually
there were at least three conditions suggested to buy the stock. Notice, XMSR
was forming a 1-2-3 bottom on its 1-minite chart. Since 9:45, the issue formed
three bullish hammers. Finally, the stochastic was showing a positive
divergence. We decided to buy it at the market shortly before 10:00.
10:07:09
Follow up on XMSR
Sell half to lock in 20 cents profit. Raise stop to breakeven.
Have a productive afternoon session!
Feel free to mail me your questions.
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