Trading Bernanke’s Comments: Pros

Wednesday, 10 Jul 2013 | 6:27 PM ET
How to Trade Bernanke's Comments: Pros
Wednesday, 10 Jul 2013 | 5:18 PM ET
The "Fast Money" traders share how they're planning to play the market following comments from Fed Chairman Ben Bernanke.

Don't put too much weight on what stocks did after hours following comments from Federal Reserve Chairman Ben Bernanke that called for quantitative easing "for the foreseeable future," StockMonster's Guy Adami said Wednesday.

"I wouldn't necessarily trust this 11-point move to the upside in the S&P," he said. "I mean, say what you want about him, but in terms of the market he's done everything exactly right, seeing the spike here."

The big question, Adami added, was whether stocks would see "a big reversal or carry through" when the market opens.

"Just be a little bit careful here tomorrow," he added.

(Read More: Bernanke: Highly Accommodative Policy Needed for 'Foreseeable Future')

Bernanke, who spoke at a conference sponsored by the National Bureau of Economic Research, said that the U.S. economy continued to need a highly accommodative monetary policy.

The CNBC's "Fast Money" traders shared how they were planning to play the market following Bernanke's remarks.

RiskReversal.com's Dan Nathan said that the market had already priced in news that had not materialized.

Bernanke: 'Big Believer of Transparency in Communication'
Fed Chairman Ben Bernanke takes questions on monetary policy after giving a speech at the National Bureau of Economic Research Conference. Bernanke says "we need to be more accommodative" regarding inflation and employment data.

"In a lot of ways people have gotten very comfortable with the notion that the Fed was going to be buying less bonds at some point in the next six months," he said.

Nathan noted the move lower for the U.S. dollar.

"I think you have to be really careful if you want to go in tomorrow and you think it's all clear and buy that opening because if you do have that reversal, it could get nasty," he said, alluding to downturns on May 22 and in June based on Bernanke's comments.

Karen Finerman of Metropolitan Capital Advisors noted that aside from Bernanke's comments, minutes of the Federal Open Market Committee released earlier in the day were less sanguine.

"If you look at earlier comments today from the minutes, there was all kinds of murkiness," she said. "You had a lot of different, more dissenting opinions, I think, than you normally have."

(Read More: Fed Officials Showed Worry About Easing Policy)

Finerman also noted that gold prices were moving higher, which suggested cautiousness.

"I would not jump in on the open tomorrow and just buy stocks," she said.

Trader disclosure: On July 10, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Dan Nathan is short BBRY Jan 12/10 call spread; Dan Nathan is long TLT July 110/115/120 call spread; Dan Nathan is long FB July/Aug 25 put spread; Dan Nathan is long XLF July 19/18 put spread; Dan Nathan is long ZNGA; Dan Nathan is long Aug 100/95/90 put fly; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long GM; Karen Finerman is long M; Karen Finerman is long SPY; Karen Finerman is long MDY PUTS; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami's wife, Linda Snow, works at Merck.

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