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Halftime: Ahead of Fed, Buy the Rumor & Sell the News?

On Tuesday investors were struggling to determine what comes next with the S&P 500 and the Dow trading near their highest level in nearly three years, while the Nasdaq was at its highest level since late 2007.

Investors largely agree that market's next big move will be determined by Ben Bernanke on Wednesday, when the Fed holds its first ever press conference after a policy meeting.

In fact, investors will be parsing through every word said by the Fed Chairman, looking for clues. Will we get, "a shift in tone relative to its outlook for inflation being benign. (Or) any whiff of anticipation as to what could happen at the end of June," says Mark Luschini, chief investment strategist at Janney Montgomery Scott in a Reuters interview.

Luschini is referring to the Fed's controversial quantitative easing program which draws to a close next month. One concern is that ending the stimulus program could remove support for buying stocks.

After hearing from Bernanke, will the market believe gains are sustainable? Or will they seem irrationally exuberant?

What should you expect?

Instant Insights with the Fast Money traders

If you have a short term time horizon, trader Steve Grasso thinks we may be looking at a buy the rumor sell the news event. “Who would be able to short this market ahead of Ben Bernanke? Not a lot of people. I think we melt-up into day’s end but I also expect a sell-off on Wednesday,” he says.

If you’re working with a longer time horizon, top hedge fund manager Anthony Scaramucci expects to hear commentary that suggests the Fed will keep its foot on the accelerator. Scaramucci thinks Bernanke will telegraph that he’ll continue to do accommodative things. "I’m not saying QE3,” Scaramucci says, “but he doesn't seem worried about inflation.”

Brian Kelly agrees with Scaramucci and thinks 'the Bernank' will use langauge that suggests “rates are going to be lower for longer. That's good for the stock market," Kelly explains.

Joshua Shaprio chief US economist at MFR suggests watching Bernanke’s body language during the Q&A. He’s hoping someone asks, “Is the economic recovery for real or is it a function of economic stimulus?” If Bernanke appears uncomfortable, “that suggests he would be in no hurry to upset the apple cart and we’d continue with easy policy from the Fed,” speculates Shaprio.

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LUCKY DUCK

Talk about one lucky duck. The new voice of the Aflac duck is a 36 year old father of three from Hugo, Minnesota.

Click here for all the details from CNBC’s Jane Wells

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BUZZKILL: NETFLIX

One more analyst has joined the lonely Netflix bear club. Tony Wible of Janney Montgomery has slapped a sell rating on shares of the stock.

Get all the details. Watch the video now!



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Trader disclosure: On April 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; Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (CSCO); Grasso owns (JPM); Grasso owns (FITB); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST)


Brian Kelly
Accounts Managed by Brian Kelly Capital own (EBAY)
Accounts Managed by Brian Kelly Capital own (SLV)
Accounts Managed by Brian Kelly Capital own (GLD)
Accounts Managed by Brian Kelly Capital own (ARMH)
Accounts Managed by Brian Kelly Capital own (BCSI)
Accounts Managed by Brian Kelly Capital own (JNPR)
Accounts Managed by Brian Kelly Capital own (MON)
Accounts Managed by Brian Kelly Capital own (DBA)
Accounts Managed by Brian Kelly Capital own (RVBD)
Accounts Managed by Brian Kelly Capital own (TER)
Accounts Managed by Brian Kelly Capital own (TSN)
Accounts Managed by Brian Kelly Capital own silver futures
Accounts Managed by Brian Kelly Capital own gold futures
Accounts Managed by Brian Kelly Capital own soybeans futures
Accounts Managed by Brian Kelly Capital own natural gas futures
Accounts Managed by Brian Kelly Capital own (FX) futures
Accounts Managed by Brian Kelly Capital own euro futures

For Patty Edwards
Edwards is long (AAPL) for clients
Edwards is long (AMZN) for clients
Edwards is long (QCOM) for clients
Edwards is long (GE) for clients
Edwards is long (TEVA) for clients
Edwards is long (MSFT) for clients
Edwards is long (KO) for clients
Edwards is long (TTM) for clients
Edwards is long S&P 500 for clients
Edwards is long Nasdaq 100 for clients
Edwards is long gold for clients
Edwards is long silver for clients

For Steve Grasso:
Stuart Frankel & Co and its partners own (AMD)
Stuart Frankel & Co and its partners own (AOL)
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 (HPQ)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (MSFT)
Stuart Frankel & Co and its partners own (NYX)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
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 are short (QQQQ)
Stuart Frankel & Co and its partners are short (AAPL)

For Anthony Scaramucci
Skybridge is a Fund of Funds Manager
Funds Held may or May Not Own the Recommended Securities

Tony Wible
Janney Montgomery Scott is a market maker in the securities of (NFLX), and may at any time hold a long or short position in this security.
Janney Montgomery Scott may seek compensation for investment banking services from (NFLX) in the next 3 months.
The research analyst is compensated based on, in part, Janney Montgomery Scott's profitability, which includes its investment banking revenues.

Joshua Shapiro
**No Disclosures



CNBC.com with wires.

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