Auto sales increase will lead to Sirius XM shares rose

According to Efraim Levy, an analyst at Standard & Poor's, new U.S. vehicle sales should rise 12.7% to 11.7 million units in 2010, and another 15% to 13.5 million in 2011. "We expect industry-wide revenues and profits to improve significantly in both years," he wrote in a recent research note.

The company should continue to grow subscribers as U.S. car sales pick up with its service available in about 60% of new cars sold.

Mobile Internet-enabled devices could help SIRI’s growth.

Sirius shares were up 1.8% to 98 cents in recent trades, while E*Trade's stock, which underwent a reverse 1-for-10 split on June 2, was up 4% to $13.51 on Thursday. The performance of the stocks year-to-date is worlds apart with Sirius up more than 60% through Wednesday's close, and E*Trade down around 25%.

Sirius XM closed friday at $1.01.The moving averages of Sirius XM are all converging. When the EMA’s (Exponential Moving Averages) of Sirius XM converge it has traditionally been the signal for a bullish run up in stock price.