Sell Sirius XM on More of the Same
Consider the intraday mayhem in Sirius XM(SIRI) , as the chart from midday Tuesday shows, above, courtesy of Yahoo! Finance.
Grab a calendar. Throw a dart at it. I bet there's a 50/50 chance you home in on a day when SIRI did something just like this.
Gap up at the open. Plummet to new lows within two hours and stagnate just above lows until the close. If you're a day trader, you can be done with work before noon on days like Tuesday. Watch the retail suckers gap SIRI up in the premarket and at the open and then short the living snot out of the stock at 9:31 a.m. Cover an hour later and you're on your way to the shore.
Thanks, in large part, to a gaggle of unsophisticated "investors" Jim Cramer recently called "penny stock guys," you can count on this stock behavior whenever news breaks that SIRI permabulls could somehow perceive as bullish.
I agree with Cramer, "I don't like them as my colleagues when I own a stock." I will, however, play counterparty to this surly lot any day of the week.