Big Hurdles Ahead?

Like warriors ahead of battle, the bulls are preparing for a tough time next week. And they’ve got some big hurdles to navigate.

Chatter suggests the Fed is turning more hawkish, and a slew of underperforming stocks report earnings.

Either -- or both -- could give the bears a foothold on the market.

#1: FED MEETING

On average analysts expect little change in interest rates – but when it comes to other Fed policies, we could be in for a surprise.

Chatter on the Street suggests a growing bloc of Fed committee members favors selling some of the Fed's $1.25 trillion in mortgages and other non-Treasury assets that were bought during the financial crisis.

Although no overt mention is expected in next week’s statement, investors will be poring over the language looking for new signs that the Fed is becoming more hawkish.

What must you know?

I think it would be a mistake to think you're going to see a move in the Fed funds rate in the near term, says Joe Terranova. As a result my trade is anything related to a lower dollar.

Read More
> Several Fed Members Favor Selling Mortgage Assets Soon

----------

#2 WORST OF THE EARNINGS SEASON AHEAD?

A slew of market bellwethers report earnings next week. Take a look:

Monday - Caterpillar, RadioShack, Texas Instruments
Tuesday -  DuPont, Ford, 3M, UPS, Broadcom
Wednesday - Dow chemical, Corning, Hess, Sprint
Thursday - Celgene, ConocoPhillips, Kellogg, P&G, ExxonMobil, Occidental Petro, Bristol Myers, Colgate
Friday - Chevron,  Dr Horton

The concern is that quite a few of them have been underpforming the S&P. They follow:

Underperforming S&P YTD
XOM, PG, CVX, OXY, MMM, BMY, CL

What’s the trade?

Companies that have underperformed have underperformed for a reason, says Gary Kaminsky, but I don't think it's negative for the market overall.

Of the names listed above I'd put Exxon on my radar, says Anthony Scaramucci.

It's not on the list, but I'm bullish on US Steel ahead of earnings next week, says Steve Grasso.

______________________________________________________
Got something to to say? Send us an e-mail at [e-mail] and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .

Trader disclosure: On April 23, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Grasso Owns (DYN), (LPX), (ASTM), (ABK), (BAC), (BGP), (C), (CVGI), (JPM), (NEM), (PRST), (PFE), (BA), (T), (CSCO), (X); Scaramucci Owns (AAPL), Skybridge Owns (AAPL); Scaramucci Owns (AMZN), Skybridge Owns (AMZN); Scaramucci Owns (BAC), Skybridge Owns (BAC); Scaramucci Owns (C), Skybridge Owns (C); Scaramucci Owns (GE), Skybridge Owns (GE); Scaramucci Owns (GOOG); Scaramucci Owns (GS), Skybridge Owns (GS); Scaramucci Owns (JPM), Skybridge Owns (JPM); Scaramucci Owns (WFC), Skybridge Owns (WFC); Scaramucci Owns (XOM), Skybridge Owns (XOM); Scaramucci Owns (SI), Skybridge Owns (SI); Terranova Owns (HES), (AXP), (TER), (SWN), (XCO); Terranova Owns (C) May Calls; Terranova Is Short (CMA); Terranova Is Short (LCC); Terranova Is Long (XLY) May Puts; Kelly Owns (FXE) Puts; Nations Owns (MSFT); Nations Owns (SPY)

GE Is The Parent Company Of CNBC

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of  (XLU)
Virtus Investment Partners Owns More Than 1% Of  (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of  (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of  (XLB)
Virtus Investment Partners Owns More Than 1% Of  (XLV)
Virtus Investment Partners Owns More Than 1% Of  (XLI)


For Steve Grasso
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (HSPO)
Stuart Frankel And Its Partners Own (MERC)
Stuart Frankel And Its Partners Own (NWS.A)
Stuart Frankel And Its Partners Own (NXST)
Stuart Frankel And Its Partners Own (NYX)
Stuart Frankel And Its Partners Own (PDE)
Stuart Frankel And Its Partners Own (PFE)
Stuart Frankel And Its Partners Own (PRST)
Stuart Frankel And Its Partners Own (RDC)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (XRX)
Stuart Frankel And Its Partners Own (SDS)
Stuart Frankel And Its Partners Own (MERC)
Stuart Frankel And Its Partners Own (TBT)
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)
Stuart Frankel And Its Partners Are Short (AAPL)
Stuart Frankel And Its Partners Are Short (CVGI)

For Brian Kelly
Kanundrum Capital Owns (CCI)
Kanundrum Capital Owns (NYT)
Kanundrum Capital Owns (MORN)
Kanundrum Capital Owns (BX)
Kanundrum Capital Owns (MEG)
Kanundrum Capital Owns (SEE)
Kanundrum Capital Owns (TLT)
Kanundrum Capital Owns (DHI)
Kanundrum Capital Owns (AWI)
Kanundrum Capital Owns (ATW)
Kanundrum Capital Owns (NOV)
Kanundrum Capital Owns (UPL)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short (MCO)
Kanundrum Capital Is Short (DB)
Kanundrum Capital Is Short (STT)
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Yen
Kanundrum Capital Is Short Swiss Franc
Kanundrum Capital Owns (DHI)
Kanundrum Capital Owns (AWI)
Kanundrum Capital Owns (ATW)
Kanundrum Capital Owns (HEW)

CNBC.com with wires