Volume Spike Investor

If you are a price weighted volume trader that looks for reversal days with large sell-offs on huge volume, Sirius Satellite radio Holdings Inc. (NASDAQ: SIRI) and XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) are sending you huge alerts today.  Goldman Sachs killed the price targets and cut estimates for 2009 on the companies pre-market.

At 12: 16 PM EST we have seen over 64 million shares of Sirius Satellite trade hands and shares are down almost 12% at $2.141.  This marks a 52-week low on major volume capitulation day.  Sirius saw 71 million shares trade just on Monday and today is set up to be the most active trading since late-March when we saw over 100 million shares trade two days in a row.

52-Week Range: $2.36 to $3.94
Avg Volume:       31 million
Market Cap:        $3.22 Billion

At 12: 16 PM EST we have seen over 16 million shares of XM Satellite trade hands and shares are down 17% at $8.59.  This marks a 52-week low on major volume capitulation day.  This is the most active share volume since late-March.

52-Week Range:    $9.62 - $16.44
Avg Volume:          5,504,120
Market Cap:           $2.74 Billion

As a reminder, many traders use major volume down days as the sign of capitulation days.  The flip-side is that stocks hitting 52-week lows tend to keep hitting 52-week lows.  You make the call.

Jon Ogg
June 19, 2008