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How Will Bernanke Move Markets. Friday?

Thursday, 26 Aug 2010 | 5:51 PM ET

Anxiety is rampant on Wall Street ahead of highly anticipated commentary from Ben Bernanke on Friday. Will his words give stocks a lift?

That’s what investors want to know as central bankers gather in Jackson Hole, Wyoming, for an annual conference organized by the Kansas City Federal Reserve Bank.

Although the summit is held at one of the nation’s most beautiful resort areas, it’s much more than a late summer mountain getaway. Academic papers are presented that can help advance the state of thinking about monetary policy.

But it’s Ben Bernanke the markets most want to hear from. The Fed Chairman makes a keynote address on the morning of Aug. 27 in which he’s expected to signal his views about prospects for the U.S. economy.

What should you expect?

Bond, Stocks in Bernanke's Hands
Insight on whether the second reading of the GDP will reveal the economy is worse than expected, with Joe LaVorgna, Deutsche Bank.

I think he says things like the economy will grow over time and as a result stocks could stage a relief rally, says Joe LaVorgna of Deutsche. However, I don’t expect to hear Bernanke say anything new.

* It’s important to note that some investors believe there’s been a policy bid in the market; that’s something Brian Kelly of Kanudrum has been telling the desk for the past few days. (In other words, investors have bid stocks higher on the belief that the worse the news gets the better chance the Fed responds.) If that’s the case and Bernanke’s comments aren’t aggressive, the market could sell off.


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Trader disclosure: On Aug 26, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Cortes is long (FCX), (SFD), (BHP), (BMO), (TD); Cortes is long Crude Oil; Cortes is long Australian Dollars; Karabell owns (AAPL), (BHP), (BP), (C), (CSCO), (FCX), (GE), (GS); Finerman owns (BAC); Finerman owns (IBM); Finerman owns (JCG); Finerman owns (JPM); Finerman’s Firm owns (POT) calls; Finerman’s firm owns (WMT); 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; Jon Najarian owns (CSCO) call spreads; Jon Najarian owns (MMR) calls; Jon Najarian owns (NKE) short calls; Jon Najarian owns (SLV) short calls; Jon Najarian owns (GLD) calls; Jon Najarian owns (CME); Jon Najarian owns (CBOE)

For Zach Karabell
River Twice Capital owns (CSCO)
River Twice Capital owns (GS)
River Twice Capital owns (IBM)
River Twice Capital owns (MSFT)
River Twice Capital owns (NKE)
River Twice Capital owns (POT)

For Patty Edwards
Edwards own (AAPL) for clients
Edwards own (BAC) for clients
Edwards own (C) for clients
Edwards own (CSCO) for clients
Edwards own (FCX) for clients
Edwards own (GE) for clients
Edwards own (GLD) for clients
Edwards own (IBM) for clients
Edwards own (JCG) for clients
Edwards own (JNK) for clients
Edwards own (MSFT) for clients
Edwards own (NKE) for clients
Edwards own (TIF) for clients


For Dennis Gartman:
Funds managed by Gartman own Gold
Funds managed by Gartman own (ANDE)
Funds managed by Gartman own corn
Funds managed by Gartman own (RJA)
Funds managed by Gartman own (POT)
Funds managed by Gartman own (MOS)

Joe LaVorgna
***No Disclosures***

For Brian Nagel
Oppenheimer & Co. Inc. makes a market in the securities of PETM, SPLS, BBBY, ORLY, and TSCO.

For Charles Biderman
Funds managed by Biderman own (GLD)
Funds managed by Biderman own (AAPL)
Funds managed by Biderman own (CRM)

For Brian Stutland
***No Disclosures***

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