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Halftime: Trichet Comments Make Trader More Bullish on US

This afternoon investors all over the world were glued to CNBC, as Mario Bartiromo spoke with European Central Bank President Jean-Claude Trichet in an exclusive interview.

And immediately following the conversation the Fast traders believed some of those comments made by Trichet will be market moving in the days and week ahead.

But according to trader Steve Cortes –they’ll be bullish for the US- not Europe.

That may sound counter-intuitive but he felt the most important thing Trichet said had to do with inflation. “Our doctrine is to do whatever is necessary to deliver price stability in the medium run, Trichet said.

And he added, “by continuing to have a solid anchoring of inflation expectations we are paving the way for sustainable growth and job creation.” On top of that he said in the long-term the present level of interest rates was a problem.

Cortes takes all that to mean keeping the inflation genie in the bottle is priority one for the ECB. And down the road that translates into a stronger euro and higher rates - at least in some form.

Problem is, according to Cortes, a stronger euro and rising rates are about the last two things Europe needs right now.

He argues a stronger euro could prevent Europe from exporting their way to prosperity. And he reminds the desk that “in Spain unemployment is 20%. Among youth it's 40%. If you raise rates in that kind of environment I think it will be (catastrophic); even the end of the euro.”

In fact, to Cortes the Trichet comments serve as a reminder that “I favor the US over Europe.”

Trader Brian Kelly sees the trade a little differently. "If you’re unemployed, higher prices make it worse," he says. "If the central bank is trying to rein in prices – it’s better for you, at least in the short run."

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Trader disclosure: On Jan. 26, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE) and (BTU). Steve Grasso owns (ASTM), (BA), (BAC), (BWC), (C), (CSCO), (JPM), (LIT), (LPX), (MHY), (NDAQ), (PFE), (PRST) and (S). Steve Cortes is short (XME) vs. S&P. Steve Cortes is short (LVS). Steve Cortes owns (GS). Steve Cortes owns (TSN). Steve Cortes owns (SVU). Steve Cortes owns (CLX). Cortes is short Corn. Steve Cortes is long U.S. Treasuries. Steve Cortes is long USD vs. the Mexican Peso. JJ Kinahan is short (SPY) through options. JJ Kinahan is short (NFLX) through options. JJ Kinahan is long (CSCO) through options. JJ Kinahan is long (YHOO) through options. JJ Kinahan is long (MSFT) through options. JJ Kinahan is long (C) through options. JJ Kinahan is long (MCD) through options. JJ Kinahan is long (AKS) through options. JJ Kinahan is long (GE) through options. JJ Kinahan owns (TBT). Anthony Scaramucci and SkyBridge Capital own (STX). Anthony Scaramucci and SkyBridge Capital own (WDC); Kinahan owns (AKS); Kinahan owns (CSCO); Kinahan owns (C)

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GUY ADAMI
Adami's wife works for (MRK)

STEVE GRASSO
Stuart Frankel & Co and its partners own (AAPL)
Stuart Frankel & Co and its partners own (ABX)
Stuart Frankel & Co and its partners own (CSCO)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (NEM)
Stuart Frankel & Co and its partners own (NWS.A)
Stuart Frankel & Co and its partners own (NYX)
Stuart Frankel & Co and its partners own (PDE)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (RDC)
Stuart Frankel & Co and its partners own (S)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners own (UAL)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners are short (QQQQ)
Stuart Frankel & Co and its partners are short (AAPL)

DENNIS GARTMAN
Funds managed by Dennis Gartman are long the Australian dollar
Funds managed by Dennis Gartman are short yen
Funds managed by Dennis Gartman are short euros
Funds managed by Dennis Gartman are long gold
Funds managed by Dennis Gartman are short Sterling,
Funds managed by Dennis Gartman are long Nat Gas
Funds managed by Dennis Gartman are long Swiss Franc
Funds managed by Dennis gartman are long wheat
Funds managed by Dennis Gartman are long silver
Funds managed by Dennis Gartman are long Soybeans
Funds Managed by Dennis Gartman are long Sugar
Funds Managed by Dennis Gartman are long Crude.



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