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Traders pick the best bets for Yellen's speech

How to trade the Fed: 4 plays ahead of Yellen

The "Fast Money " traders made their last few bets ahead of Federal Reserve Chair Janet Yellen's Friday speech in Jackson Hole, Wyoming.

Trader Brian Kelly said he recently added a new position in the banks. He said if Yellen makes hawkish statements on Friday, the banks could rally.

If the Fed chair's statement ends up dovish, defensive assets like the utilities sector and gold miners are the places to invest, said trader Steve Grasso.

Kelly said, however, that Yellen's potentially hawkish comments are already priced into the gold miners and other gold assets. On Wednesday, the gold miners broke below their 50-day moving average. But even with the recent move to the downside, the VanEck Vectors Gold Miners ETF has soared 99 percent this year.

"Gold, to me, appears to be in a long-run bull market. You buy the dips in that," he said.



Steve Grasso is long BA, CC, EVGN, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX. Grasso's kids own EFA, EFG, EWJ, IJR, SPY. No Shorts. Stuart Frankel & Co Inc. and some of its Partners have a financial interest in LDP, WDR, AVP, CVX, FCX, ICE, KDUS, KO, MAT, MCD, MJNA, NE, NEM, OLN, OXY, RIG, STAG, TAXI, TEX, TITXF, URI, VALE, WDR, WYNN, ZNGA, CUBA, HSPO, ICE, AMZN, MJNA, TITXF, NXTD, SPY, QQQ, DIA, XLI, BGCP, VIRT, JCP, GE, AIR FP.


Karen Finerman is long AAL, BAC, C, DAL, DRII, DRII calls, FB, FL, GOOG, GOOGL, JPM, LYV, KORS, KORS, KORS puts, M, MA, SEDG, SPY puts, UAL, URI, WIFI long call spreads. Her firm is long ANTM, AAPL, BAC, C, C calls, DRII, DRII calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M, MOH, PLCE, SPY puts, URI, WIFI. Her firm is short IWM, MDY. Finerman is on the board of GrafTech International.


Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc. David Seaburg and Cowen have a financial interest in EDIT.


Brian Kelly is long Bitcoin, CME, DXJ, GDX, KBE, SLV, TLT, VXX, XLF, XOP, US Dollar UUP; he is short the euro and Japanese yen.