'Fast' Traders: Reflation Trade's Run Over?

While some traders are betting with Federal Reserve Chairman Ben Bernanke and his reflation trade, others think his run is done.

Brian Kelly, founder of Kanundrum Capital, isn't sure Bernanke's plan will work out in the end, but he's going along with it. Kelly thinks the past few days were simply a "minor correction" in this trend up and said nothing has really changed in the past few days.

That may be the case, said Karen Finerman of Metropolitan Capital Advisors. But since Bernanke addressed the economy at Jackson Hole in August, the equity markets are up a "gigantic" 15 percent. Investors feel wealthier and moving into riskier assets, which is just what he was hoping for, Finerman said. She doesn't know why anyone would stay in the reflation trade when the momentum has already happened.

It may have already happened, but Bernanke's not going to let the market fall apart, countered Kelly. With things like auto sales and unemployment improving, Kelly thinks the economy seems to be improving.

But Finerman said the market has already priced that in.

Author Stephen Weiss thinks there's too much pessimism in the markets overall, so there's still room to the upside. He recommends buying on any dips, specifically a 5 percent pullback.

In the bond market, Tim Seymour of EmergingMoney.com said people aren't sure what to do. Seymour said investors are closely watching bond auctions, but aren't certain how to handle them. He wonders if the US dollar and Treasurys won't start a downward path soon.

Trading Around the Reflation Trade

Whether you believe in the reflation trade or not, Drakon Capital's Guy Adami suggests Ford Motor . On a lousy tape Wednesday, the stock closed up for the day. He thinks this stock would work independent of what's happening in the markets.

Seymour wouldn't buy Ford at current levels, telling Adami he's "late to the party." He recommends European automakers instead, such as Tata Motors . Finerman agreed. She likes Daimler and the industrial truck space, as well.

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Trader disclosure: On November 10, 2010, the day this video was recorded, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour owns (AAPL), (BAC) and (F). Guy Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC) and (MSFT). Karen Finerman owns (GOOG). Stephen Weiss owns (FWLT). Zachary Karabell owns (IBM), (VALE) and (AAPL).

GUY ADAMI
Adami’s wife works at Merck

KAREN FINERMAN
Finerman’s firm owns (AAPL)
Finerman and Finerman’s Firm owns (BAC)
Finerman and Finerman’s Firm owns (JPM)
Finerman’s firm owns (PLCE)
Finerman's firm is short (IJR)
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman’s firm owns S&P 500 puts
Finerman’s firm owns Russell 2000 puts

GUY ADAMI
Adami’s wife works at Merck

BRIAN KELLY
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own (JEF)
Accounts managed by Kanundrum Capital own (TD)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (CLF)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (GPRE)
Accounts managed by Kanundrum Capital own (JJG)
Accounts managed by Kanundrum Capital own (HD)
Accounts managed by Kanundrum Capital own (PCL)
Accounts managed by Kanundrum Capital own (XHB)
Accounts managed by Kanundrum Capital own (FCX)
Accounts managed by Kanundrum Capital own (JO)
Accounts managed by Kanundrum Capital own (EWH)
Accounts managed by Kanundrum Capital own (MCP)
Accounts managed by Kanundrum Capital own (MOT)
Accounts managed by Kanundrum Capital own (RIMM)
Accounts managed by Kanundrum Capital own (C)
Accounts managed by Kanundrum Capital own (SWC)
Accounts managed by Kanundrum Capital own Euros
Accounts Managed By Kanundrum Capital own (POT) Calls
Accounts managed by Kanundrum Capital are short Japanese Yen

MIKE KHOUW
Cantor Fitzgerald makes a market is (AAPL)
Cantor Fitzgerald makes a market is (AMSC)
Cantor Fitzgerald makes a market is (AMZN)
Cantor Fitzgerald makes a market is (AONE)
Cantor Fitzgerald makes a market is (BA)
Cantor Fitzgerald makes a market is (BAC)
Cantor Fitzgerald makes a market is (C)
Cantor Fitzgerald makes a market is (CSCO)
Cantor Fitzgerald makes a market is (F)
Cantor Fitzgerald makes a market is (FCX)
Cantor Fitzgerald makes a market is (GOOG)
Cantor Fitzgerald makes a market is (GS)
Cantor Fitzgerald makes a market is (IMAX)
Cantor Fitzgerald makes a market is (JEF)
Cantor Fitzgerald makes a market is (JPM)
Cantor Fitzgerald makes a market is (KBH)
Cantor Fitzgerald makes a market is (LAZ)
Cantor Fitzgerald makes a market is (LGF)
Cantor Fitzgerald makes a market is (LVS)
Cantor Fitzgerald makes a market is (MS)
Cantor Fitzgerald makes a market is (NEM)
Cantor Fitzgerald makes a market is (NFLX)
Cantor Fitzgerald makes a market is (ORCL)
Cantor Fitzgerald makes a market is (PLCE)
Cantor Fitzgerald makes a market is (SLV)
Cantor Fitzgerald makes a market is (TSLA)

ROGER NESHEM
***No Disclosures***

DAVID BANK
RBC Capital Markets is currently providing (DIS), (DISCA) with non-securities services, and has within the last 12 months.
RBC Capital Markets has provided (TWX) with non-investment banking securities-related services in the past 12 months.nundrum Capital own Euros
Accounts Managed By Kanundrum Capital own (POT) Calls
Accounts managed by Kanundrum Capital are short Japanese Yen

ROGER NESHEM
***No Disclosures***

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