E*Trade Financial Corporation Formerly known as E*Trade Group, Inc (ET).. The Group's principal activity is to provide online brokerage, banking, lending and planning and advisory services to retail, corporate and institutional clients.
Here's a chart with all the stock market history of ET:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=124;image)
My stock market filter has thrown away 99.1% of all stocks. From the 0.9% that stayed, several of them were online brokerage stocks, specifically E*Trade and Ameritrade. From the two, for two or three reasons, I opted for ET.
Here's the medium term chart:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=125;image)
Making higher lows and equal highs. This is a bullish formation. This group is in play now, I want to join the action. Buying ET at tomorrow's open.
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The news is out (http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh43340_2005-05-09_12-01-04_n09649737_newsml), that was why E*Trade and Ameritrade were up so much on Friday. Not buying the news, this call is off.
Good morning !
Please read this interesting article about E*Trade:
E*Trade Trades Up (http://www.fool.com/News/mft/2005/mft05102423.htm?logvisit=y&source=estmarhln001999&npu=y)
I see a 35.6% growth in earnings and a forward P/E of about 17.
I think ET is undervalued and the market agrees, taking the stock price to a new 52 week high today.
There was an ascending triangle breakout in July 2005 and that breakout gives me a technical target of $21.55. I think the current run up won't stop south of this level, and today's closing price was $18.49. So I see a $3 a share profit in E*Trade for the short term.
I would also love to own the stock longer term, since I believe on-line trading will take out all other forms of trading and E*Trade is one of the best positioned companies on this field. Also, acting as a online bank too may increase its value a lot.
But 3 Stocks on Fire isn't a long term trading portfolio, it is supposed to buy stocks that are on fire. ET certainly qualifies, so I'm buying it at tomorrow's open for the 3 Stocks on Fire Portfolio.
Why not consider SCH, its cheaper !!!! ;D
ET is a solid pick, but it could be do for a short term pull back. It has been up for 7 days in a row
Wow, it's true. I didn't realize SCH was so cheap. Worth considering for the future.
Bought ET @ $18.44 for the 3Stocks Portfolio
Quote from: REALDEALS21 on October 24, 2005, 10:47:22 PM
Why not consider SCH, its cheaper !!!! ;D
Cheaper? By which measure? The stock price? That's not a valid measure ...
I'm an international investor and I never thought of opening an account with SCH. I have an account at E*Trade. I guess E*Trade's name and trademark will make it grow its costumer base more than Charles Schwab (I almost can't spell it).
And ET is the strongest of the group, it already broke out to new highs and SCH didn't.
Quote from: eggman11 on October 24, 2005, 10:55:01 PM
ET is a solid pick, but it could be do for a short term pull back. It has been up for 7 days in a row
Unfortunately you were right eggman11, hats off :D
The technical breakout ET made has a technical target of $21.55. I'm planning on selling there and not below.
ET: HOLD
ET went down yesterday as the general market took a dive. I see an ascending channel building and ET may come down to the lower range of that ascending channel.
Although I admit ET may come down over the short term, I'm not a seller at these levels. I'm thinking of taking profits on this position just at the technical target of the last breakout, around $21.55.
I see the brokerage and banking sector picking up steam. Maybe there's some speculation the FED is now near the end of its rising rates campaign. Possibly that will be the catalyst for a short covering rally that will take the SPX to new highs above 1250.
I know I want to keep on holding ET.
I don't know if the year end rally at the SPX and the Nasdaq will be fueled by a sense that the FED will make a pause on its raising rates campaign, by lower oil prices, or both.
What I do know is the airline and brokerage sectors are moving higher. ET is a leader in its space (on line brokerage and banking services), in fact, it is taking over most competitors. The stock is undervalued from a fundamental point of view and technically the trend is bullish.
There's every motive to continue holding ET for the foreseeable future.
An interesting view on E-Trade:
E-Trade up ahead of expected rate hike (http://www.marketwatch.com/news/story.asp?guid=%7BFB5AFFFE%2DD836%2D413C%2D9864%2D11040B5019E1%7D&siteid=mktw&)
This thing saying that higher interest rates are good for brokerage stocks, only on a short term basis, of course, longer term higher interest rates would harm the market and brokers.
ET made a nice rally today, leading its group higher. I always look to own the leader on a bullish industry group:
«"The online brokers grew net interest income on average 24.8% sequentially in the calendar third quarter of 2005, reaching record levels for all 5 eBrokers," Repetto said Tuesday.»
There's no doubt this sector is on fire, ET is undervalued as you can read on the rest of this trade, so I'll continue holding it.
The entire brokerage sector is on fire at this moment, and ET is one of the most attractive stock in its group. Today I'll also buying Tradestation (TRAD), which I think will be a great pick.
These are more signals this market is set to go higher at this point (also, stock exchange stocks have been rising a lot lately).
ET is undervalued and in a bullish trend. I'll continue holding it.
Some positive news out today: E*TRADE FINANCIAL Launches Global Markets Web Portal (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=472849&guid=%7B320D1134%2D0C38%2D43AF%2DA693%2DF70A0EE76443%7D&symb=)
Some news on E*Trade yesterday but nothing that could move the stock: E*TRADE FINANCIAL Closes Acquisition of Kobren Insight Management (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=472849&guid=%7B88F6D009%2DBB5C%2D4220%2D8CAF%2DB369EC9E4C43%7D&symb=)
The stock opened too high and couldn't hold on to those gains, profit taking naturally took place. I'm able to draw an extremely steep trendline, with $0.20 slope, which is even more than VPHM could take :)
The entire brokerage sector (and stock exchange sector) is bullish right now. I find it a bit strange that it is rising because of rising interest rates (although I understand earnings rise over the short term). Maybe it's climbing because the market as whole will make new highs with volume above average.
There may be a lot of reasons, but more important than the reasons behind the moves, is the nature of the moves itself. And the move on e*trade has a bullish nature.
Annouced Friday,4:24pm et 11/04/05
ET will offer concurrently $700 mil in common stock, $250 mil in senior notes,and $450 mil in equity units to finance it earlier annouced acquisition of Brown and Co. Morgan stanley and JP Morgan will manage the books. This may put the brakes on ET short term. Just wanted to be sure you saw this David.
Quote from: 1reilly on November 06, 2005, 11:49:17 AM
Announced Friday,4:24pm et 11/04/05
ET will offer concurrently $700 mil in common stock, $250 mil in senior notes,and $450 mil in equity units to finance it earlier announced acquisition of Brown and Co. Morgan Stanley and JP Morgan will manage the books. This may put the brakes on ET short term. Just wanted to be sure you saw this David.
Yes, I saw it 1reilly, thanks :)
I think this information is priced in, insiders and institutional investors probably knew this was coming. And for a $7B company, issuing $450M in common stock isn't all that much. Possibly the last two days fall was due to this news and the stock today reacts positively again.
I'll bet on that outcome and continue holding ET.
QuoteI think this information is priced in, insiders and institutional investors probably knew this was coming. And for a $7B company, issuing $450M in common stock isn't all that much. Possibly the last two days fall was due to this news and the stock today reacts positively again.
It looks like I was right, the stock rose yesterday on that negative news. The AMEX broker/deal index ($XBD) is another one that is already at fresh new highs. I hold ET and TRAD on that group, and I feel very well with these two holdings.
ET came down yesterday with volume much below average, in tandem with the general market. I believe this is just a small correction in an overall bullish trend and that ET will make new highs soon.
Nice white candle from ET yesterday, I'll keep on holding !
Don't get this wrong with the chart I provide below, ET made a new high yesterday, with the general market. The technical target for this bullish move is $21.55. Maybe I'll take profits there, maybe I won't, we still have time to think about it as the stock rises from its current price which is $19.41.
Bollinger Bands suggest ET may spend some months consolidating the recent bullish move. But I think the stock just changed its past behavior when the general market turned from lateral to bullish.
The stock probably is entering an ascending trend, which is different from the last 2 years. Even so, the smaller trendline has a slope of $0.15, and that will be very hard to hold, it is too steep.
So, technically ET seems to be overextended here. But that's not a valid reason to sell.
Of course, sometimes I have hold/sell doubts. In this case I opt to sit tight and continue holding ET.
ET continues to build and consolidate the recent bullish move. I think the long term chart clearly shows the new trend for ET, and I want to look at the big picture at present time.
Why? Because this is the year end rally (that possibly will continue until February/March of 2006, I don't know) and I will end up doing better holding stocks with bullish trends than trading a lot in and out of stocks.
The big picture tells me ET is advancing and there are no signs of stopping here, therefore I'll continue holding the stock.
Nothing new on ET, just leaving the chart:
Trading Plan for ET: Take profits at the symmetrical triangle breakout target, at $21.55. As downside protection, I'll sell if the stock is set to close below the medium term ascending trendline, which for today is standing at $16.59.
People cheared the news coming out of ET yesterday:
E*TRADE FINANCIAL Announces Pricing of Common Stock, Senior Notes and Equity Units (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=472849&guid=%7B4C732056%2D49F7%2D4C58%2D827F%2DB3A60E3AA8EF%7D&symb=)
Shares rose 5% with more than 32 million shares changing hands. This was the highest volume in 18 months for ET. I sure expect the stock to reach my technical target of $21.55 soon.
Let me rephrase the trading plan for ET:
Take profits at the symmetrical triangle breakout target, at $21.55. As downside protection, I'll sell if the stock is set to close below the medium term ascending trendline, which for today is standing at $16.63.
Friday was a slow day for ET, little movement and not so great volume.
I'll just continue with my trading plan for ET:
QuoteTake profits at the symmetrical triangle breakout target, at $21.55. As downside protection, I'll sell if the stock is set to close below the medium term ascending trendline, which for today is standing at $16.68.
Nice white candle but low volume. No reason to change the trading plan, though:
QuoteTake profits at the symmetrical triangle breakout target, at $21.55. As downside protection, I'll sell if the stock is set to close below the medium term ascending trendline, which for today is standing at $16.72.
The FED has signaled yesterday that maybe it will stop rising rates in the near future. I remember that I was perplexed, but ET actually is posting higher profits partially due to the rising interest rate environment.
Also, the stock is showing less volume on this second attempt to surpass current levels, that means less money involved and that usually means the stock won't be able to break resistance at this moment.
I think this macro change may be the catalyst for ET to come down to test the ascending trendline on the chart below. That trendline stands at $16.74 today.
So I'll take profits today and will be looking to buy back ET at the ascending trendline.
Changed Ticker Symbol
ET is no longer valid. It has changed to ETFC
The "ETFC" Threads in Previous 3SOF Picks
Have been merged.
Got the go ahead to do so from Ramsburg.
I will be working here on this board to merge other threads also.
I will leave you Friday's closing chart while I'm in this thread.......
Good trading to all !
Regards,
Your fellow trader @3SOF
setravis