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After ‘The Bernank’, You’ve Got to Buy Stocks: Pros

Tuesday, 17 Jul 2012 | 1:12 PM ET

“Now, you have to be long stocks,” says trader Brian Kelly, founder of Shelter Harbor Capital, after Ben Bernanke concluded his testimony before the Senate. “There is no other choice.”

Kelly as well as many other market pros believe that Fed Chairman Ben Bernanke just telegraphed that QE3 must be factored into all future trades.

“He talked about the second quarter coming in below 2% and he talked about the jobs number failing to improve,” Kelly says. “How much more do you need to hear!"

"We've already had several Fed governors come out and say the mood is changing at the Central Bank. And today, Bernanke all but said as long as the economy continues to get weaker, we're going to be there.”

Kelly like so many other market pros sees the potential of QE3 not as a hint but rather as a series of probabilities. And Kelly as well as other pros believe the probability just got higher.

And as the Fed nudges closer, Kelly believes investors need to put money in stocks. That’s in part because once the Fed moves, Kelly doesn’t think they will move subtly.

“Whatever comes along next, it's going to be big,” he says. And you want to be in stocks before it happens.

Trader Guy Adami, managing director of stockMONSTER.com, thinks the technicals tell a similar story.

"1344 has been a key technical level and it held. It suggests investors are well aware that the Fed is trying to push them into higher risk assets."

What Will Bernanke Do to Help US Economy?
CNBC's Steve Liesman weighs in on Fed Chairman Bernanke's testimony on Capitol Hill today and whether the Fed will take additional action to help create jobs. The FMHR traders share their plays on the Fed's testimony.

Posted by CNBC's Lee Brodie

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Trader disclosure: On July 17, 2012 , 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 is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Jon Najarian is long AKAM CALLS; Jon Najarian is long AAPL CALLS; Jon Najarian is long INTC CALLS; Jon Najarian is long SLV CALLS; Jon Najarian is long ARNA CALLS; Jon Najarian is long VVUS CALLS; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long CIGX; Jon Najarian is long GLUU; Brian Kelly is funds long SPY; Brian Kelly is funds long IWM; Brian Kelly is funds long TLT; Brian Kelly is funds long GLD; Brian Kelly is funds long SLV; Brian Kelly is funds long IBM; Brian Kelly is funds long XHB; Brian Kelly is funds long T; Brian Kelly is funds long VZ; Brian Kelly is funds long EURO; Brian Kelly is funds long MON

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