Traders strategize ahead of Bank of Japan, Fed meetings

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."


Disclosures:

BRIAN KELLY

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.

DAN NATHAN

Dan Nathan is long TWTR, long PYPL call calendar, long FEZ Nov put spread, long EEM Nov put spread, long XHB Jan put spread, long XLK Jan put spread, XLU Dec call spread

TIM SEYMOUR

Tim Seymour is long APC, AVP, BAC, BBRY, CLF, DO, DVYE, EDC, EWZ, F, FB, FCX, FXI, GM, GOOGL, GRMN, GE, INTC, LQD, M, MCD, MPEL, NKE, RACE, RAI, RH, RL, SINA, T, TWTR, UA, VALE, VZ, XOM. short: SPY, XRT. His firm is long ABX, BABA, BIDU, CBD, CLF, EWZ, F, HD, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short HYG, IWM, UAL.

DAVID SEABURG

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. Diamond Offshore: an employee of Cowen and Company, LLC serves on the Board of Directors of Diamond Offshore. EXPE, HZNP, VA – Not Approved.