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How pros are trading ahead of Bernanke testimony

Wall Street will turn its attention to Washington on Wednesday, as Federal Reserve Chairman Ben Bernanke heads to Capitol Hill for his annual testimony on the economy.

Though no one knows for sure what Bernanke will say on Capitol Hill, his comments will likely move the markets. They got a boost last week after Bernanke said monetary policy would remain accommodative for the near term, even if unemployment hits the Fed's target of 6.5 percent.

"I personally think the data is going to be kind of disappointing," said Larry Lindsey, who served as a member of the Board of Governors of the Federal Reserve System from November 1991 to February 1997. "I am one who thinks the Fed is going to be tapering in September, as many do."

To position ahead of Bernanke's comments, Dennis Gartman, founder and editor of The Gartman Letter, is long both equities and gold.

"The trend in stock prices has been upward. It will continue to be upward. Nobody will like this answer, but it will continue to be upward until it stops," Gartman told CNBC's "Fast Money."

"As long as the Fed continues to supply reserves and tapering continues to mean that they will supply reserves—although at a slightly slower pace—the trend [for gold] is probably going to still be from the lower left to the upper right," he said.

To Karen Finerman of Metropolitan Capital, when the Fed will start tapering doesn't matter so much as that it's changing its policy at all. She is looking to get long a steepening yield curve for Treasurys by way of bank stocks, though she doesn't specify any bank stock in particular.

—By CNBC's Drew Sandholm. Follow him on Twitter @DrewSandholm

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