Stocks mixed at the open

Auto bailout 'not a solution'

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NEW YORK (CNNMoney.com) -- Stocks opened mixed on Monday as investors geared up for a volatile session at the start of a holiday shortened week.

The Dow Jones industrial average (INDU) was up a few points shortly after the opening bell. The Standard & Poor's 500 (SPX) index and the Nasdaq composite (COMP) were both a few points lower.

Stocks ended mixed on Friday as investors responded to the Bush Administration's plan to bailout the auto industry, and readjusted portfolios amid a plethora of options expirations.

Art Hogan, chief market strategist at Jefferies & Co., said that traders - or anyone - who show up to work this week are "the exception, rather than the norm." As such, he expects low volume and high volatility and said trader sentiment will be difficult to read.

"We're going to have increasingly lower volume as we continue to go through the week," said Hogan. "You can't really lend much credibility to any of the moves we see because it can't be confirmed with volume."

At this point, traders have priced in a considerable amount of bad news and now they're just looking for a rally. "We've got a market that's kind of situated in a place where not even bad news is going to sell it off," said Hogan.

Anthony Conroy, head trader at BNY Brokerage, agreed that trading will be slim, and that traders are looking to buy, not sell. "People don't like uncertainty; they don't like questions," said Conroy. "I think people are looking for any kind of a glimmer of hope."

Conroy said stocks could rally today, responding to news that the Chinese government cut a key interest rate; he added that the Dow may see a 3% to 5% boost this week.

Economy: The housing market is in focus on Monday as the Hope Now Alliance, a coalition of lenders trying to help homeowners facing foreclosure, reports on its 2008 efforts and looks ahead to next year.

There are no economic reports due out Monday.

World markets: Asia markets closed mixed on Monday despite early gains. Japan's Nikkei gained 1.57% while Hong Kong's Hang Seng shed 3.34%. Stocks suffered on news that Toyota (TM) slashed its earnings forecast and now anticipates breaking even for the year. Europe traded in mixed territory, with Britain's FTSE higher, but German's DAX and France's CAC lower.

Oil and money: The dollar fell against the euro but gained against the yen and the British pound. Oil prices edged up 25 cents a barrel to $42.61.