Purple and green fever

Amazing to see ETFC on the rise.

Of all the loan-heavy financials ravaged over the past several months, E-Trade had a clear shot at bankruptcy. Quite sad for what was once a rip-roaring company that relied on brokerage fees to make a big name for itself.

Well, in early March, with the toxic-asset problem on fire, ETFC hit an intra-day low of 0.59. That was just about the time I re-entered and started trading again. I recall taking a peek at the stock price once, had no interest whatsoever. Preferred to buy AAPL instead.

Well, ETFC is up to the 2.50 range now, riding the coattails of the financial sector. But more than that, their loan problems are being worked out. Supposedly, E-Trade will be able to get, at least in theory, 100 percent of the loans back through a third party. That's more than enough to perk up my interest, but I'm not convinced it's fact until I see it.

As for the stock itself, it has a life of its own. The run for sub-1 buck to 2.50 needs a pit stop, but I'll be watching for a pullback and possible entry point to start swing trading ETFC. At its one-year peak, ETFC traded in the mid-20s with volume less than 10 million shares per day. The past week, it had several sessions of volume in the 45-55 million share range. Could be a short squeeze, but it's still worth watching.

I'd be happy to trade it several times for 10-cent gains.