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.

"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.” 

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.

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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

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