BULLISH BUY

As one can clearly see, the markets are having the down day no one expected to happen ever again. Well maybe its just a one day wonder, but market internals are giving the indication that this market will close at/near the days lows as there are over 3,000 more losers than winners. The brokers are also having an ugly day as they are down 2% on the heels of great numbers this morning from MER.

If you are bullish, buying the brokers is probably one of the best ways of playing a further rise in the market. We all know that every strategist on the street expects the SPX to finish the year near or above the 1,400 level; and are they ever wrong?

The IAI ETF is a nice way of playing the brokers without actually buying each of the big ones. Its biggest components include MS (8.5%), MER (8.5%), GS (8.1%), LEH (6.9%) SCHW (5.45%), BSC (5%), and LM (4.7%).