Bernanke Grabs the Mic From Greenspan and Finds Himself in a Conundrum
Lately, Alan Greenspan has been stealing the spotlight, by speaking candidly about the risks of recession and mortgage blowups spreading. But, on Wednesday Ben Bernanke returns center-stage, when the Federal Reserve comments on monetary policy. Will the Fed Chief raise rates to fight inflation, which is creeping back into play, or cut rates to save a weak housing market? And what’s the trade?
Jeff Macke thinks you trade it for a neutral Fed. He recommends buying dips because he thinks the market will be fine. Play it for the volatility.
Eric Bolling agrees. Inflation might be a little worrisome, but if the Fed raises rates they would take out what little footing the housing market has. Robert Toll, CEO of Toll Brothers (TOL) already came out and said the Spring selling season is a bust. Eric says sell the calls on the homebuilders or the SPDR S&P Homebuilders (XHB) calls. Just move on.
Guy Adami says the inflation data has been frothy and the Fed’s job is not to protect the housing market.
Tim Strazzini says stay defensive in the housing stocks. The stocks have already been discounted on bad news. Now, it’s just a matter of when they’re going to turn.
Guy added that Copper made an 8 month high, and China is still going to grow, BHP Billiton (BHP) is the trade.
Dylan Ratigan says the bottom line is the Fed isn’t going to do a darn thing next week.
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On MAR 16, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC's Fast Money were owned by the Fast Money traders. Bolling Owns (DIS), (ICE), (NMX), Gold, Silver, Soybeans, is Short S&P Futures, is Short Nasdaq Futures, is Short Corn: Strazzini Owns (JRT), (MER)