Pro: Spain Just Signaled Bailout Request Imminent

If you’re looking to play this market, top trader Brian Kelly says nothing matters more than the latest developments from Spain.

On Thursday Madrid announced a new budget and detailed timetable for needed austerity measures to bring the nation's finances under control.

"This is a crisis budget aimed at emerging from the crisis ... In this budget there is a larger adjustment of spending than revenue," Deputy Prime Minister Soraya Saenz de Santamaria told a news conference after a marathon six-hour cabinet meeting.

Although developments in Spain may sound somewhat academic, top Fast Money trader Brian Kelly says they matter to American investors, very much.

“Around 12:15pm ET something critical happened,” said Kelly on Fast Money.

The EU's Economic and Monetary Affairs Commissioner, Olli Rehn, said Spain's budget went beyond what the European Commission has asked of Spain. Rehn also called the budget an ambitious step forward.

Kelly, who is founder of Shelter Harbor Capital, believes the language signals that Spain just 'agreed to a bailout without formally agreeing to a bailout.'

“Because budget was more than the EU wanted – it means there will be no objections to a bailout request,” Kelly explained. “The door is open now (for a bailout),” said Kelly. They’ve done everything asked of them. I see Spain asking for a bailout between tomorrow and October 21^st.”

(October 21st is a regional election in Spain and Kelly believes the government may wait until the election is decided before requesting a bailout."

If you’re looking to play events, Kelly is bullish on the DAX

“I think the European banking system is now strengthened by what I consider to be a defacto bailout. And that should benefit banks and Germany based companies. The German DAX is the way I'd play it.”

Posted by CNBC's Lee Brodie

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Trader disclosure: On Sept. 27, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Steve Weiss is long TOT; Steve Weiss is long HK; Steve Weiss is long QCOM; Steve Weiss is long AIG; Steve Weiss is long M; Steve Weiss is long WLP; Steve Weiss is long VZ; Steve Weiss is long VOD; Steve Weiss is long T; Steve Weiss is long CLNY; Steve Weiss is long AMTG; Steve Weiss is long MTGE; Steve Weiss is long BAC; Steve Weiss is long EUO; Steve Weiss is short VALE; Steve Weiss is short BHP; Steve Weiss is short RIO; Steve Weiss is short GOOG PUTS; Steve Weiss is short AAPL PUTS; Steve Weiss is short AKS; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long SBUX; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in GS; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in YHOO; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in GOOG; Jon Najarian is long call spreads in HLF; Jon Najarian is long call spreads in DECK; Jon Najarian is long call spreads in TEX; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long STSI; Mike Murphy is long AAPL; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is long TWI.

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