Two Ways To Play: Motor City Bailout
Strengthen your portfolio in good times and bad.
Meanwhile, members of Congress acknowledged that a bipartisan rescue package would likely be unveiled soon. It would inject roughly $15 billion into the Detroit automakers, helping them soldier through the first quarter of 2009.
Shares of GM and Ford (F) surged on the news.
From the Bull Pen: It's foolish to think that a bailout of the automakers was the catalyst that sparked a broad-based rally in stocks. Today's performance was probably just another move in the context of a bear market - and we may be due for a correction tomorrow. But the lows are, by all accounts, in for the 2008. Bulls can consider a stock like Disney (DIS), catching it on a pullback toward $23.
From the Bear Cave: Is Amazon (AMZN) due for a pullback? It's sitting at its 50 DMA after a nearly 30% move this month. Those attempting the downside can set a buy stop above that level.
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