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Traders: With the Fed on hold, here's how to play the market

The "Fast Money" traders weighed their playbooks after the Federal Reserve announced it had decided to leave rates unchanged on Wednesday, but cut its rate forecast for 2017.

While the S&P 500 is now 2.97 percent from its all-time intraday high, trader Dan Nathan thinks it needs to be isolated from the rest of the market.

"When you look at equity markets all over the world, they're actually performing very poorly, especially on a year-on-year basis, and especially the ones where interest rates have gone negative. ...The S&P is a crowded trade. It's not where you want to be," Nathan said, adding that he'd rather place his chips in the Russell 2000.

Trader Pete Najarian said that with where the CBOE Volatility Index is trading, he believes that this is "a very difficult investing environment." Najarian, however, said that there's opportunity to trade stocks that are being hit in a background of higher volatility.

He said he bought calls against First Solar that he intends to hold just for the short-term.

Trader Tim Seymour said he bought the iShares MSCI Emerging Markets ETF before the Fed's announcement.

"This is a range trade. EM is in a better place with less Fed, at least in the short run. I'm not making a call, except for I am making a statement that I think EM, first of all, was oversold on dollar perception and that we have a place, where I think things have [gone] significantly different," he said.

Disclosures:

Guy Adami

Guy Adami is long CELG, EXAS, GDX, INTC. Guy Adami's wife, Linda Snow, works at Merck.

Pete Najarian

Long stock: AAPL, BAC, BMY, CSCO, DIS, DISCA, GE, KMI, KMI.A, KO, LUX, MRK, M, PEP, PFE, SAVE, VIAB, ZIOP Long Calls: AAL, AKS, AMJ, CHK, CSCO, CSX, DAL, EGO, ETP, EWZ, FSLR, GLW, GS, GSAT, HBAN, HSY KGC, LLY, M, MDLZ, MPEL, MSFT, MT, MU, NLNK, P, SBUX, SLV, SVU, TMUS, UAL, WLL, WYNN, YHOO Long Puts: BID, FCX, GM, NAV, SCTY, VLO, X

Dan Nathan

Long PFE Long TWTR, XHB long June put spread IWM long Sept put XLB long June put spread XLF long Sept Put spread HYG long June put spread XLK long Sept Put spread FXI long Aug put spread SMH long Aug put spread, KO June/Aug put calendar, long UA call calendar, long PYPL call calendar, long TLT Sept risk reversal, XLV July calls, long C Sept puts, BABA June/Aug put spread

Tim Seymour

Tim Seymour is long AVP, BAC, BBRY, CLF, DO, EDC, EWZ, F, FCX, FXI, GM, GOOGL, GRMN, GE, INTC, LQD, M, MCD, MPEL, NKE, RACE, RAI, RH, RL, SINA, T, TWTR, UA, VALE, VZ, XOM. Tim's firm is long ABX, BABA, BIDU, CLF, EWZ, F, HD, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, YHOO, short HYG, IWM, WYNN, XRT