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How to trade banks after Janet Yellen hints at March rate hike

The "Fast Money" traders broke down Federal Reserve Chair Janet Yellen's Friday remarks about a possible March rate hike on Friday, while picking stocks to trade in the financial sector.

Trader Guy Adami said bank stocks are in an environment where they will continue to rally. He said he likes Goldman Sachs, after the company gained over 2 percent in the week. Shares of the investment bank are up 63 percent in the last 12 months.

Out of the big banks, trader Tim Seymour said he likes Bank of America, Citigroup and J.P. Morgan. He added that BofA and Citi have more room to run because of their valuations.

Trader David Seaburg said regional banks are where traders should place their bets. Seaburg said its time to move away from large banks and take profits, especially since it will take a long time for the effects of regulation reform to make a difference.

Disclosures:

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

Dan Nathan is long SPY May put spread, VIX long March call spread, JNJ long APR puts

Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT; Tim's firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM

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"