E TRADE Financial Corp (ETFC)

[suzyHomemaker]

Hi rambob,

The key, in my opinion, with $2.08 is seeing if it really holds as support. A 52 week low really isn't a strong support level unless it's associated with some other groupings of lows.

First of all, I'm really hoping $2.42-2.52 holds. That reinforces it as a playable area.

If the price breaks towards $2.08, I'm not buying until it holds and heads back up. It will probably be tested more than once like $2.50 is being tested right now.

And, of course, if $2.08 is violated, run away! Because there's nothing but air under it on the chart. I guess there's psychological support at $2, I dunno.

One way to play it might be to place a limit buy at $2.09 with a market stop at $2.02. That way you're gambling $2.08ish holds but you're not riding it under $2.