Sirius XM Radio's (SIRI) climb to above sixty cents is worth noting as it may be an indication that some shorts are covering their shares in anticipation of a march towards the $1 mark.
In my opinion, Sirius XM could be a good rebound story as the economy and auto market recover, but the stock is definitely worth watching for the short term to ascertain as to whether or not Wednesday's price action is a head fake or the real deal.
Investors who may be looking for an entry point should watch this stock closely and pull the trigger on any dips back into the fifty, if not forty, cent range. If the broad market rally continues to look bullish, I can see SIRI reaching the dollar mark later this year.
If bad economic news were to push the markets lower, then that would open up a nice buying opportunity, in my opinion, for a broad selection of stocks.
My strategy is to stay prepared for both scenarios - buy a few shares now in case the economy - and the market - shows signs of recovery, but keep some cash readily available to buy on any significant market dips.
Either way, in my opinion, the small investor wins with that strategy.
Disclosure: VFC is long SIRI.
