ETFC

[1reilly]

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.

[David Randolph]

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.

[David Randolph]

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.

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.

[David Randolph]

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.

[David Randolph]

Nice white candle from ET yesterday, I'll keep on holding !

[David Randolph]

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.

[David Randolph]

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.

[David Randolph]

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.

[David Randolph]

Nothing new on ET, just leaving the chart:

[David Randolph]

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.

[David Randolph]

People cheared the news coming out of ET yesterday:

E*TRADE FINANCIAL Announces Pricing of Common Stock, Senior Notes and Equity Units

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.

[David Randolph]

Friday was a slow day for ET, little movement and not so great volume.

I'll just continue with my 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 $16.68.

[David Randolph]

Nice white candle but low volume. No reason to change the trading plan, though:

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 $16.72.

[David Randolph]

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.

[setravis]

Changed Ticker Symbol

ET is no longer valid. It has changed to ETFC