As I listened to last night’s State of the Union address, I was pleased to hear the sitting President take credit for the rebound of the American Car manufacturers. That’s not to say I believe he had anything to do with the recovery, just that I was pleased to hear him say it. I think his nationally broadcast campaign speech will have positive impacts on auto sales, and the American consumer in general. Bravo Mr. Obama! ...
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Brandon,
Do you have an estimate on the upside potential if the golden cross occurs as expected?
Right on, Brandon. Also – in terms of moving average analysis: All moving averages are now ascending, indicating the dominance of positive momentum. Divergences among these moving averages are in no way suggesting an overbought condition of proportions worrisome enough to suggest a selloff for correction/consolidation is warranted.
One of the best of these indicators is the spread between 5 and 20 day moving averages (the last week’s averages against the last month’s averages) and this spread is now only +.12 (5 day avg. at 2.11 and 20 day avg. at 1.99). When compared to levels of divergence seen over a multi year graph, this is nowhere near the wider levels of +.25 (or greater) that typically occur when markets have really run to levels deemed to be temporarily overbought.
In sum – the current divergences and moving average relationships are all just fine – indicating the dominance of positive momentum within a framework of orderly gains – in no way temporarily overbought. Any near term backing and filling is only to consolidate these gains along the way and pullbacks should remain well contained buying opportunities.
All Systems Go for Sirius XM and SIRI.
Great addendum
Thank you for the additional analysis and comments RAF! Very much appreciated.
Glad to be of help, guys. Semper Fi!
Hoorah!
Do you also anticipate Mel upping the guidance for 2012? It seems much has happened since that guidance was initially established last quarter, e.g., strong execution in launching Hispanic radio, used car deals with Auto Nation and Chrysler, brisk new car sales, aged fleet/pent up demand, easier financing and optimism for future new car sales, and greater than expected net subscriber growth for Q4… do you think that anticipated higher 2012 guidance might be already baked into recent run up in share price?
Why can’t I see SIRI’s announcement of earning’s release?
i give up? why?
lol
US Vehicles Sales Expected To Rise In January
Last update: 1/25/2012 9:45:19 AM
DOW JONES NEWSWIRES
U.S. light vehicle sales are expected to show year-to-year growth for January, according to data from two industry researchers. “Retail light-vehicle sales in January are showing stability coming off the 2011 high note in December,” said John Humphrey of J.D. Power and Associates.
Vehicles are remaining on dealer lots for fewer than 50 days on average–the lowest level for January in several years–in a sign that pent-up demand is returning, Humphrey said. Market-research company J.D. Power & Associates projects new-vehicle retail sales will increase on a seasonally adjusted annualized basis to 10.9 million units from 10.3 million units a year earlier, but down from 11.3 million units in December.
The McGraw-Hill Cos. (MHP) unit forecast total light-vehicle sales growth of 6% to 681,000 units for the month. However, that represents a decline of 35% from December. Meanwhile, car pricing website TrueCar.com expects January’s seasonally adjusted annualized rate to reach 13.6 million units for the month, up from 12.7 million units a year earlier, and flat from December. Meanwhile, retail sales for January are projected to rise 7.3% from last year, but decline 30% from December.
“The positive momentum from the end of 2011 and a reasonable January 2012 sales rate will likely take industry sales very close to 14 million units this year,” Jesse Toprak of TrueCar.com said.
Stark dichotomy of their respective perception. Who is closer to the absolute truth, and why? Hmmmm?
so it looks like we will be getting 6% – 10% year over tear sales growth for January and not the decrease Spencer Osborne mentions in his SA article.
Things continue to look good
The State of the Marxist Asswipe Campaign Karl (Marx) Show [SMACKS]…what a farce; and I did not punish myself as an audience to it. Good to hear Brandon report that the Marxist has AFFIRMED the Satellite Radio Industry (SiriusXM Exclusively) is in rebound, ready to slingshot past terrestrial and the other jokers.
Thanks to both Brandon for the clear understanding of upcoming conditions affecting the moving averages, and also RAF for all the addtional insight you also provide. Without this website I would not have a clue. Satwaves is invaluable and worth every more then you could know. I am thankful I found it.
love the lead pic for the article!
TY BM and RAF ! Nice to see that our time is almost here for reaping our rewards for our investment. We have come a long way from .05 a share.
ALLENVW:
BM- yoo really do a great job with the information you provide. I just cant believe how much info you gather and how much time you put into this. I cant imagine that anybody that holds/trades etc.. our beloved SIRI stock wouldnt participate in this memebership. I appreciate all the input, comments from everyone… BM- THANKS!!!
Auto sales look exceptionally strong. 14.4% of the u.s. pop is planning on buying/leasing an automobile over the next 6 months.
Good work Brandon, I love this website of yours because you give us meaty stories and facts, you could put out 50 fluffy junk articles a day like other sites do but you do the right thing and give us facts with very little of your opinion, other sites do the oposite and give all opinion with little or no facts
How popular of an indicator is the Golden Cross in traders’ technical analyses? If so is this then programmed as a trade by these firms? Or is it a manual thing that a call has to be made on rather than automatic? Thanks.
geoworld: I believe alot of firms use moving averages such as the 50 and 200 day and also certain support levels, now when the averages cross like in a golden cross I am not sure, I would think many take a long position when the stock goes above the 50 day moving average that seems to be the biggest one.
just sayin….awesome article…
http://tinyurl.com/7ffygz4