Satellite Stocks Send Strong Signal

XM and Sirius have formed similar patterns; buyers should stay tuned. Plus the Nasdaq, Motorola and more.
Author:
Publish date:

This story was originally published on RealMoney on June 6 at 8:25 a.m. EDT.

The recent run in the market has left a lot of bulls giddy.

Frankly, I was in that camp a few weeks ago, but my ardor has since cooled.

For one, I get concerned when the indices move straight up. In addition, the

Nasdaq

(see chart below) got turned back -- and hard! -- right at resistance.

That might be indicative of more downside, or it could just be a brief pause.

Regardless, my take (also reflected in

my newsletter

) is to be doing very little on the long side right now.

Today's charts:

The Nasdaq;

Sirius Satellite

(SIRI) - Get Report

;

XM Satellite Radio

(XMSR)

;

Motorola

(MOT)

;

Qualcomm

(QCOM) - Get Report

;

Energy Select Sector SPDR

(XLE) - Get Report

.

Charts produced by TC2000, which is a registered trademark of

Worden Brothers Inc.

And that is the final word from Bethany Beach, where it's now become

de rigeur

for graduating high school seniors to enjoy a "beach week" post-graduation. For a parent, I'm afraid it's the ultimate no-win situation.

Gary B. Smith is a freelance writer who trades for his own account from his Maryland home using technical analysis. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks.

Smith writes a daily technical analysis column for RealMoney.com and also produces a daily premium product for TheStreet.com called The Chartman's Top Stocks --

click here for a free two-week trial. While Gary cannot provide investment advice or recommendations, he appreciates your feedback;

click here

to send him an email.