ETFC

[David Randolph]

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:



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:



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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[David Randolph]

The news is out, that was why E*Trade and Ameritrade were up so much on Friday. Not buying the news, this call is off.

Good morning !

[David Randolph]

Please read this interesting article about E*Trade:

E*Trade Trades Up

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.

[REALDEALS21]

Why not consider SCH, its cheaper !!!!

[eggman11]

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

[irod]

Wow, it's true. I didn't realize SCH was so cheap. Worth considering for the future.

[Ramsburg]

Bought ET @ $18.44 for the 3Stocks Portfolio

[David Randolph]

Why not consider SCH, its cheaper !!!!

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.

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 

The technical breakout ET made has a technical target of $21.55. I'm planning on selling there and not below.

[David Randolph]

ET: HOLD

[David Randolph]

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.

[David Randolph]

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.

[David Randolph]

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.

[David Randolph]

An interesting view on E-Trade:

E-Trade up ahead of expected rate hike

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.

[David Randolph]

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

[David Randolph]

Some news on E*Trade yesterday but nothing that could move the stock: E*TRADE FINANCIAL Closes Acquisition of Kobren Insight Management

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.