On Wednesday, money pros were trying to understand what to make of the latest commentary from Ben Bernanke.
Some pros worried that it would put an end to the rally and future gains in the S&P.
According to the rally skeptics, it’s not so much what Bernanke said, it’s what he didn’t say. The Fed chairman gave no signals that further easing will be on the table.
“It seems definitive that the market is not getting QE3,” muses trader Stephen Weiss.
“The chairman has taken away the Bernanke put,” adds Brian Kelly.
Peter Boockvar, equity strategist at Miller Tabak focussed on a very specific comment - "Bernanke acknowledged the improvement in the labor market. It means we are not going to get (more monetary easing) anytime soon."
However, rather than run for the exits, the Fast pros interpret Bernanke's comments as yet another sign that a self-sustaining recovery is underway in the US.
In other words, Bernanke's comments are consistent with many other positive data points; for example mortgage applications jumped last week, Chicago PMI was excellent and consumer wages are up.
If you agree with the thesis laid out above, trader Brian Kelly thinks the trade is long. “If that’s your thesis you should be buying dips.”
Trader Josh Brown agrees. I’m long,” he says.
Stephen Weiss agrees but sees a different trade.
“I’m shorting Treasurys via the TBF,” he says. “I think the risk reward in the bond market is terrible given the risk/reward in the US stock market.
What do you think? We want to know!
DO YOU KNOW?: Why are optimistic investors called bulls?
Click here and find outin the latest installment of our Wall Street History series.
Got something to to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to firstname.lastname@example.org.
Trader disclosure: On Feb. 29, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Weiss is long (QCOM); Weiss is long (TBF); Weiss is long (CSC); Weiss is long (BKU); Weiss is long (EUO); Weiss is long (KEG); Weiss is long (HK); Weiss is long (MDRX); Weiss is long (HYG); Weiss is long (HAIN); Weiss is long (VZ); Weiss is long (WLP); Weiss is long (SNDK); Weiss is long (JPM); Weiss is short (ANR); Weiss is short (MT); Weiss is short (FCX); Kelly is long (SPY) Puts; Kelly is long German bunds; Kelly is short Japanese Yen; Cortes is long SPY; Cortes is short Australian dollar; Cortes is short (XHB); Brown is long (MSFT);
For Colin Gillis
For Andrew Burkly
CNBC.com with wires.