NEW YORK ( TheStreet) -- Nothing bothers me more on Wall Street than when someone asks a question they already know the answer to. It is as if asking the question can somehow magically alter the current reality.Many continue to ask whether or not shares of satellite radio giant Sirius XM ( SIRI) will start to trade higher based on factors like moves being made by Liberty Media ( LMCA). These questions are being raised as the market is providing the answers.
First, the stock's current value is 12% and 10% below its 50-day and 100-day moving averages. Second, it has now tested that all-important 200-day moving average at $1.97 suggesting that a near-term top may eventually emerge right at the $2.00 level -- contradicting notions of $2.15 having somehow become a "new floor." Investors also need to keep a watchful eye of the $1.95 level. While not a huge number, for Sirius it has always served as a psychological barrier. If it were to be breached, there is virtually no chance that it will stay above $1.90 -- lending more evidence to the likelihood that the stock is going to be dead money for the next six months. I don't see how anyone cannot applaud Liberty for what it has been able to do. Essentially, it has played this situation as well as it can be played. Not only has it shown it is unwilling to pay the premium investors think that the stock deserves, it has timed its recent moves during periods where weak hands are known to bail -- hence "sell in May." From that standpoint, it seems everyone else has already started exiting their positions - essentially, astute investors are beginning to listen to what the market is saying, while those who are caught "wanting to be right" go down with the ship.