Some people have speculated recently that the day trader is back in vogue. This certainly seems to be true at the institutional level. A good high frequency trader is defined by the fact that he ends flat at the end of every trading day. But the volume gains at discount brokerages suggests that retail day traders are also back in vogue. 

So what are these new day traders speculating in? To some extent, they've discovered zombie stocks, once near-blue-chip stocks of companies that have since failed or at least flirted with failure. The list includes the likes of AIG, WaMu and others. Lehman Brothers may be the best example.

The SEC has decided to take a look at the practice. According to the Washington Post, it is stepping up it's activity when it comes to making sure discount brokers offer sound advice to customers buying zombies.

For more:
- here's the article

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