Schaeffer's "Behind the Headlines" Highlights the Following Stocks: Bank of America, Legg Mason, Charles Schwab, E*Trade Financial, and TD Ameritrade.

CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on Bank of America (NYSE:BAC), Legg Mason (NYSE:LM), Charles Schwab (NASDAQ:SCHW), E*Trade Financial (NYSE:ET), and TD Ameritrade (NASDAQ:AMTD). "Behind the Headlines" is a report that analyzes newsworthy stocks that are generating a lot of attention on Wall Street. "Behind the Headlines" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research.

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Behind the Headlines:

The brokerage sector has been hit with a mix of news this morning that has pulled the group sharply lower. First off, Legg Mason (NYSE:LM) warned last night that it would miss the consensus earnings estimate of $1.16 per share. The brokerage firm is currently expecting a profit between 96 cents and $1.02 per share. As a result the stock has been downgraded at least twice and is currently down almost 18 percent.

The other bit of interesting news comes from Bank of America (NYSE:BAC). The firm confirmed plans for its retail brokerage unit to offer customers free online equity trades, effective immediately. So far, E*Trade Financial (ET) has said that it has no plans to match BAC's free-trading offer and Fidelity Investment has no brokerage pricing changes to announce. Naturally, this announcement has shaken up some of the online brokerage firms.

Charles Schwab: At last check, the shares of Charles Schwab (NASDAQ:SCHW) were down more than five percent, but have bounced back from their session low of $16.34. In fact, today's low came remarkably close to a 50-percent retracement of the stock's rally from its July low (14) to its October high of (18.39). Furthermore, today's pullback has not only been halted by the security's 20-week moving average, but SCHW has also found support at its ascending 10-month moving average. The security has logged only one monthly close below this long-term trendline since November 2004. Traders should keep an eye on this region as the stock could use it as a springboard from which to bounce higher.

Click the following link to see a Daily Chart of SCHW Since June 2006: http://www.schaeffersresearch.com/wire?ID=17523

E*Trade Financial: E*Trade Financial (NYSE:ET) is currently down more than nine percent on BAC's news. However, the stock is holding support at the 22 level. This region has served as both support and resistance for the shares in the past. Investors may also watch this stock to see if it can pull back to the 22.50 level today. This strike is the site of peak put open interest in the October series with nearly 15,000 contracts. With October options set to expire next week, this hefty accumulation of contracts could act as a magnet to pull the shares back to the 22.50 strike. However, one technical concern for ET comes in the form of the equity's ascending 50-week moving average. Since testing the trendline in mid-June, ET has suffered only one weekly close below this trendline. Today's gap lower has left the shares below this moving average. A failure to regain the support of the 22.50 level could result in a pullback to support at the stock's 20-month trendline at the 20 level.

Click the following link to see a Daily Chart of ET Since June 2006: http://www.schaeffersresearch.com/wire?ID=17523

TD Ameritrade: Meanwhile, TD Ameritrade (NASDAQ:AMTD) has plummeted nearly 11 percent to support at the 17 level. The 17 area helped to buoy the equity in August and September. This region is also close to a 50-percent retracement of the stock's ascent from its July low (13.30) to its October high (19.69). Furthermore, today's low was halted by the security's 80-day moving average.

Click the following link to see a Daily Chart of AMTD Since July 2006: http://www.schaeffersresearch.com/wire?ID=17523

The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROAW13M&PAGE=1

About Schaeffer's Investment Research (www.SchaeffersResearch.com)

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method.