DaytradeTeam Profitzzz

Sirius Satellite (SIRI) is currently being plagued with insider stock trading allegations and a bit of the old "buy on the rumor, sell on the news" syndrome with Howard Stern. Sometimes for investors, having a big news item like "Howard Stern is Coming" is a lot more appealing than "Howard Stern is here...(now what? we paid how much?, etc)".

Those two items have certainly had a negative effect on the stock of late, but from a technical point of view, the outlook from this point is certainly favorable from a risk/reward standpoint:

On the 9-month chart, you'll notice that SIRI is nearing its long term uptrend line here and showing some oversold signals with the 14 day RSI near historical lows where the stock price has bounced in the past. Look for opportunities to buy SIRI or enter bullish options spread positions with the mentality that if the uptrend line is broken on heavy volume, you'll exit quickly with only minor pain. A short-term target of 7.00-7.25 should be adequate.

XM Satellite Radio (XMSR) is in a little bit of a different situation technically:

Notice how XMSR has moved into a well-defined trading range over the last two months between 27.90 and 31.10. XMSR is currently nearing the bottom of this consolidation range, and could be in a very nice position to enter a bullish vertical credit spread or other bullish net-credit options trade. This allows you to profit from time-decay of the options premiums should the support level hold here, but exit with a very small loss (or even a gain) should the support level fail later this week.

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