I put out a fleeting buy signal yesterday on Sirius Satellite Radio after a chart alert I'd set earlier this year warned that the stock was approaching a long-term target at $2.87. SIRI shares were hovering closer to $4.00 when the forecast was made, and although the implied 30 percent drop seemed like overkill, we've learned never to second-guess our technical indicators, especially Hidden Pivots. In this instance, those indicators fortunately tempered our enthusiasm for accumulating a stock that had traded as high as $60 during the dot-com boom. It's hard to imagine Sirius would not be a bargain at these levels, but perhaps not. That's because SIRI's funereal dirge yesterday exceeded our Hidden Pivot target at 2.87 by nine cents ' a seemingly trivial miss that in our book is as good as a mile. We stopped ourselves out of the long position after holding it for several hours, although one guy in the Rick's Picks chat room confessed to having ignored my instruction to exit the trade if SIRI fell even a little, to 2.79. We admonished him gently, noting that our enthusiasm was never so much for the stock itself as for the Hidden Pivot at 2.87 that had looked so promising. The fact that this support was exceeded by a relatively whopping nine cents implies that still-lower prices impend. From a fundamental standpoint, we would infer that it may be yet a while longer before Sirius finds a profitable business model, assuming it ever does. World-Class Mouth Expectations for Sirius were nothing less than circus-is-coming-to-town giddy after Howard Stern signed on a couple of years ago. In retrospect, it is clear that it was Stern's world-class mouth that helped pump up SIRI shares. Indeed, he was as relentless a promoter of the company as he has
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