GO
Loading...

Chartology: Are Banks Still Broken?

Are the brokers cheap or just broken? Find out what the charts reveal!

According to Oppenheimer chief market strategist Carter Worth not all brokers are created equal. And if you’re not careful, you could end up making a poor decision in a poor sector.

He’s particularly bearish of marquis names such Merrill (MER), Morgan Stanley (MS) and Lehman (LEH). “Take a look at these charts he says.

Symbol
Price
 
Change
%Change
MS
---

"All these firms are in established downtrends,” Worth explains. “As far as I’m concerned, stay away!”

However, he is impressed by the charts of some other brokers. “TD Ameritrade (AMTD), Charles Schwab (SCHW) and Raymond James (RJF) all appear to be acting well according to Worth. Not only are they showing relative strength, but they’re trading at or near 52-week highs.”

Symbol
Price
 
Change
%Change
BGES
---
Symbol
Price
 
Change
%Change
SCHW
---



Worth finds the action in these charts to be bullish. “If you’re looking to get into financials, the online brokers, which make most of their money on trading volume, may be the place to play,” he concludes.


To see more of Carter Worth’s technical analysis please watch the video.










______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to fastmoney@cnbc.com.

Trader disclosure: On Sept 3, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MSFT), (WMT), (UUP), (DIS); Macke Is Short (TM); Adami Owns (BTU), (C), (AGU), (GS), (INTC), (MSFT), (NUE); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (NOK), (SUN), (TSO), (VLO), (JCP); Finerman's Firm Owns (AAPL) Calls, (JCG) Calls, (HUN) Calls; Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm Is Short (XLF), (IYR), (IJR), (MDY), (IWM), (SPY), (COF), (BBT), (BAC); Pete Najarian Owns (AAPL) And (AAPL) Collar, Pete Najarian Owns (EP) Call Spread, Pete Najarian Owns (ETFC), Pete Najarian Owns (FTO) Call Spread, Pete Najarian Owns (LEH) Put Spread And (LEH) Call Spread, Pete Najarian Owns (NOK), Pete Najarian Owns (SCHW) Calls, Pete Najarian Owns (WFMI) Put Spread, Pete Najarian Owns (XLF) And (XLF) Collar

Charles Schwab Is A Sponsor Of "Fast Money"

Oppenheimer & Co. Is A Market Maker In (SCHW)

Symbol
Price
 
Change
%Change
RJF
---
SCHW
---
AMTD
---
MS
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report