Got a question from a friend about ETrade and other financials and thought I'd post my musings for what they're worth. "I can't help you much on ETrade, but my instinct would be to stay away. There's talk about a merger or acquisition, which makes valuing a company too difficult. I think there are some opportunities in the financials, but I would look to the highest quality names for serious investing. I bought some GS for my 401 K a few weeks ago at 202, and would add to it with any future pull backs. An analyst on podcast "The Real Story" was also bullish on JPM. C is very interesting given how far it has fallen, but the concern is whether they will cut the dividend. If they do announce a cut, the stock may drop irrationally and that may be a time to buy. According to this week's Barrons, the options market (smart money) has already priced in a dividend cut. In my Tradeking account where I take some bigger risks, I have been buying June 08 XLF Calls betting on a rebound in the sector as a whole. Hope that's helpful.." I'll add also, that I have bought some XLY Jan 09 calls, betting on rebound on retail. There is likely a selling pressure at the end of the year and a short covering pressure in January on this beat down sector for tax considerations. Same goes for financials.