Volatile Market Going Nowhere Benefits Brokers

With trading profits receding on Wall Street, the recent volatility in what has been a largely sideways market has to be a welcome development, as it offers traders some opportunities to actually profit off their investments. The major averages have seen some pretty ridiculous moves over the last few months, but overall haven't gone much of anywhere. This has led to the uncomfortable position where the market is taking in heavier trading volumes, but at strange positions and without really benefiting the trader. Many are moving at high volumes to try and keep from getting killed on big moves, even when they'd rather not move out of a particular position. Then, having moved out, the market reverses and they killed again. Not exactly a good time to make your money flipping equities...unless you're a broker. Brokers are, without a doubt, the big winners so far this summer. Taking a chunk of every trade has them profiting with every up and down in the market. Every panic-stricken, Greece-default-driven speculation gives brokers a piece of the pie. Flip that trade and change your position and bam! They profit again. Well, why shouldn't you be able to get in on that action? Here's how to profit from either side of these choppy markets. ACTION ITEMS:

Bullish:
Traders who believe that this is good news for major Wall Street brokers might want to consider the following trades:

• Major Wall Street brokers may do well, including Goldman Sachs GS and Morgan Stanley MS

• It also helps discount brokers such as Charles Schwab SCHW, TD Ameritrade AMTD, and E-Trade ETFC.

Bearish:
Traders who believe that the choppy markets could hurt mutual fund companies as investors switch to lower expense ETFs may consider an alternate position:

• Short stocks like Janus Capital Group JNS, T. Rowe Price TROW and Legg Mason LM

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