The "Fast Money" traders debated how investors should position their portfolios ahead of two major central bank meetings.
Trader Brian Kelly said that there is a real chance the Bank of Japan and Federal Reserve will disrupt the recent rally. He said that if the BOJ announces a "massive stimulus program ... the dollar is going to rip." Kelly said, however, if the BOJ does nothing, there will be "a lot of problems all over the place because they need something."
Kelly said that he would be long the dollar ahead of the Fed's meeting. He said "the odds of the dollar going lower are very slim at this point in time."
Trader Tim Seymour said the BOJ meeting may be more important than the Fed's because it's unlikely the U.S. central bank will announce any major policy changes this week. He said that the real risk is if the BOJ doesn't provide as much stimulus as economists expect, which would cause the yen to surge against the dollar.
Trader David Seaburg said investors can find opportunities by looking for dislocation. He said that the financials might sell off and he would be looking to buy the companies he likes the most in that sector if that happens. Seymour said he also likes the financials, which are "historically cheap."