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Halftime Pt. 1: Bet Bullish Because Of Big Ben?

Stocks jumped on Wednesday, driving the Dow back above the psychologically important 10,000 mark, after comments made by Ben Bernanke soothed investor jitters.

Testifying before the House Budget Committee he said “The economy ... appears to be on track to continue to expand through this year and next."

He also said the European debt crisis is likely to have only a "modest" impact on the U.S. economic recovery as long as Wall Street stabilizes.

The rhetoric eased fears about the upcoming earnings season – investors are concerned it may be riddled with landmines due to weakness in Europe, high unemployment and weakness in the housing market.

How should you be positioned now?

Instant Insights with the Fast Money traders

I really liked hearing Bernanke say European leaders are showing a firm resolve to fight the crisis and restore confidence in financial markets, explains Joe Terranova. And that the Fed will remain "highly attentive" to developments abroad and their potential impact on the U.S. economy.

I take that to mean there’s global coordination happening behind the scenes. I think the trade is in currency. I’d be long the British pound, the Aussie dollar or Canadian dollar. And I’m now bearish the greenback.

Looking at the S&P, I think the bullish comments from Bernanke send the market pushing against 1100 but then it will likely pullback, says Jon Najarian. It’s probably stuck in a range between 1040-1100 through the end of June

And looking ahead to July I’m seeing a lot of put buying, Najarian adds. But I just think that’s smart investors protecting themselves ahead of options expiration next week. If so many people are holding puts it may be bullish – they’re probably looking to stay in the market.


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TOPPING THE TAPE: OIL/ENERGY

Oil and energy names topped the tape Wednesday after unofficial reports out of Beijing suggested China’s exports surged 50% in May. The results renewed hopes for a global recovery.

How should you be positioned now?

If you’re looking at China, I’d also keep an eye on CPI, a measure of inflation. The latest number was somewhat hot, explains Brian Kelly. And that suggests China may need to de-peg the yuan and that could hurt exports going forward.

Foxconn had to raise prices to offset wage increases, adds Patty Edwards. That suggests China is on the edge of inflation and I expect the US will import some of it. As a play, I’d get into equities and out of bonds.

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BEYOND BP: WILL SHALLOW DRILLERS BE THE BIG WINNERS?

The fallout from the BP oil spill has weighed heavily on shallow water drillers as investors worry new rules on offshore drilling will impact both deep and shallow drillers.

What does the industry expect?

There is no ban on shallow water drilling currently and I’m comfortable today that there won’t be one, says Randy Stilley, Seahawk Drilling CEO on the Halftime Report.

Check out our entire conversation with Stilley. Watch the video now!

What’s the trade?

I think the trade is long nat gas as well as exposure to Canada and Russia, says Joe Terranova.

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CALL THE CLOSE

Joe Terranova: I think the market moves from its trough back up to its trend lines

Brian Kelly: Use Goldman as your market tell, and if it's in the red short the rally.

Patty Edwards: I'd play stock picker but also with protection.

Jon Najarian; I expect the market to push against 1100 and then pullback.


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Trader disclosure: On June 9, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Pete Najarian owns (AMD) calls; Pete Najarian owns (MCD) calls; Pete Najarian owns (C) calls; Terranova owns (IPSU), (BX), (UDN), (PFE), (RSX), (TER), (AXP), (BMO), (BBY), (DIS), (XCO), (SWN), (GLD), (AAPL), (IPI), (SU), (V), (TEVA), (FXB), (CVS); Adami owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Grasso owns (ABK), (BAC), (BGP), (C), (DYN), (JPM), (LPX), (NDAQ); Kelly owns (GS) puts; Kelly owns (SPY) puts

For Joe Terranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (AMKR)
Virtus Investment Partners owns more than 1% of (IGE)
Virtus Investment Partners owns more than 1% of (DBV)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLV)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (DRYS)

For Steve Grasso
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HON)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (SYMC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (TBT)

Brian Kelly
Kanundrum Capital is short (AMZN)
Kanundrum Capital is short (RCL)
Kanundrum Capital is short (XLY)
Kanundrum Capital is short (AFL)
Kanundrum Capital is short (EWI)
Kanundrum Capital is short (EWO)
Kanundrum Capital is short (GS)
Kanundrum Capital is short (HIG)
Kanundrum Capital is short (XLF)
Kanundrum Capital is short (FCX)
Kanundrum Capital is short (XLB)
Kanundrum Capital is short the Euro
Kanundrum Capital is short the U.K. Pound
Kanundrum Capital is short the Swiss Franc
Kanundrum Capital owns (GLD)
Kanundrum Capital owns (GDX)
Kanundrum Capital owns (GDXJ)

Kanundrum Capital owns (AUY)
Kanundrum Capital owns (GFI)
Kanundrum Capital owns (TLT
Kanundrum Capital U.S. Dollar

For Dennis Gartman
Funds managed by Gartman are short yen
Funds managed by Gartman are short sterling
Funds managed by Gartman are euro
Funds managed by Gartman own gold
Funds managed by Gartman owns NFLX
Funds managed by Gartman are short RIMM
Funds managed by Gartman own (SDS)

For Scott Hanold
RBC Capital Markets is currently providing Anadarko Petroleum with non-securities services
RBC Capital Markets has provided Anadarko Petroleum Corporation with non-investment banking securities-related services in the past 12 months

Whitney Tilson
Funds managed by Tilson own (BP)

For Mike Khouw
Cantor Fitzgerald makes a market in (ADM)



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