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E Trade Financial Group Inc. (ET $11.44 @ 1:47PM) is a leader in the Internet- e Commerce group and is a diversified financial services company that offers a range of financial products and services under the brand E*TRADE FINANCIAL. The Company offers products and services to retail, corporate and institutional customers, and operates in multiple countries around the world.
Technical traders notice little things like new highs. So today when high-ranked E-trade Financial Corp. (NYSE – ET) hit new highs it showed up in CANSLIM.net’s Mid-Day BreakOuts Report. With the benefit of some positive earnings news and leadership from other brokerage firms (like Bear Stearns, which beat expectations and is up today), it seems that E-trade is also acting like a very strong leader in the broker/dealer industry group. It gapped open to hit a new 52-week high out of a better than nine week flat base today. It appears ready to close at a new high today on above average volume. New high closes on above average volume are hard to ignore.
Note that companies like Bear Stearns are categorized in IBD’s Finance-Investment Bankers group while E-trade is listed in the Internet- e Commerce group. Still, one must consider it as a very respectable leader in a strong group. It seems that ET trading on the NYSE with 362.3 million shares outstanding is a bit large (thus inclined to be a bit stodgy), however, note that in O’Neil’s relatively new 3rd Edition of “How to Make Money in Stocks” he says, “any size capitalization stock may be bought” under the CANSLIM method. So, if you’re worried ET is too large, compare its technical breakout to the breakouts that occurred in Nextel Communications (NXTL) back in June at $16 and again in October at $21 (it has a billion shares outstanding). Overall broad market action is probably a greater concern at the present time, however on that point we might notice that it has been the large NYSE stocks that have been gaining favor of late. If one adds ten cents to ET’s most recent significant high of $11.31 on 12/03/03, you arrive at a pivot of $11.41. Today’s gap up cleared that point, and even exceeded its 10/15/03 high of $11.52.
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Prior 4 Quarterly earnings % Changes: |
| Dec '02 vs '01 +100% |
Dec '03 vs '02 +25% |
Jun '03 vs '02 +27% |
Sept '03 vs '02 +42% |
| Shares Outstanding: 362.3 Million |
50-Day Avg Vol: 4,650,600 |
| Pivot Point: (.10 above high on 12/02/03) $11.41 |
Max Buy Price: $11.98 |
More Info: 5-year Chart from BigCharts.com
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