Scary part is that is not far from the truth. The auto industry is in turmoil in case you missed it. Then again how could we miss the headlines, they are all over the place. We can all look back at the situation that they find themselves and pinpoint so many blunders that it makes you wonder how they did not see this coming. I remember thinking years ago when the first round of 0% financing came out, that this was a very bad idea. The firms were sacrificing their future. As it turns out, I was right. We can all argue in here on whether they should be “bailed out” or not, but that really doesn’t matter for what we all care about personally…money.

How do we monetize the situation? There is a surplus of supply in the American market.  Sales are continuing to plummet. Are you willing to buy a car from a firm you are not sure will be here tomorrow? What stakes will the UAW try and take? What will the firms do with the money to ensure solvency? Is the amount being offered enough to even sustain the firm long enough to make a difference in the bottom line? I could go on and on.

These are the questions that everyone is looking for answers to. It has been a rough 10 years for the automakers and yet they have not shown any significant change to the structure. But maybe this is the stimulus they have needed to push them in the right direction. So again I ask, how do we monetize this situation?

Of the big three, we have to do some homework. I suggest using the Quotes and Research section on the website (also found via the research tab in Elite). Let’s dig in and find out who is in the best position. It is time to get fundamental here and “know” the company. Then, use the technical tools within charting to identify the emerging patterns. Take advantage to the volatility in the market. Picking up some 5-7% swings feels better than what the market has done to most individuals.