Stocks Mixed on Bush Auto Bail Out

President Bush finally opened the Treasury to the auto industry today, essentially allowing the Democrats and Obama administration to deal with the problem next year. For lending Chrysler and GM $13.4 billion now, and potentially an additional $4 billion in February, the administration required some changes in the way these companies do business, and in particular how it pays its workers. The UAW as already cried foul and will undoubtedly pester the Democrats, whom it contributes millions to, to change this deal for the better of the union. Of course, this won't help the auto makers restructure in the long run, so the government essentially threw good money after bad, which was expected.

In spite of the Dow closing slightly lower today, all of the other major averages were up on the day, and there was good money flowing into those stocks that close up on the day. I really like the chart patterns I see on the Dow and S&P 500, expect some positive price action early next week. Pre-holiday trading tends to have an upward bias. Day traders should be aware of the upward seasonal bias for next week.

Scott Cole
www.bestdaytradingstocks.com