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Bernanke Confirmed By Fed, Troubles Far From Over

Fed Chairman Ben Bernanke won confirmation for a second term on Thursday, removing at least a slice of uncertainty from the market.

Bernanke's nomination was approved 70-30 by the Senate, however his troubles are far from over. He received more “no” votes than were ever cast in opposition to a nominee for Fed chairman, in history.

Some Wall Street watchers suggest that was a signal to Mr. Bernanke that lawmakers – especially those facing tough re-election battles -- hope to wield influence at the Fed.

Whatever the political ripple, there's no doubt that Bernanke will remain under the microscope as he shapes monetary policy during the fragile economic recovery.

And of all those measures none is more widely watched that the fed funds rate which is currently near zero. When will interest rates go up? Here’s a list of predictions:

MS & UBS: June 2010
BCS & C: September 2010
BAC: December 2010
JPM: March 2011
GS: December 2011
Source: Birinyi

What’s the trade?

In light of these developments, how should you game financials?

Despite the confirmation, uncertainty about the future powers of the Federal Reserve remains front and center, says Guy Adami. It seems to me bank stocks have run on optimism that isn’t justified. I think banks – especially regional banks – set up for a short play.

I’m not so sure, counters Pete Najarian. Put buying in the XLF suggests to me big investors intend to say with the bank trade, he counters.



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Trader disclosure: On January 27th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Najarian Owns (AAPL) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (QCOM) Call Spread; Najarian Owns (XLF) Calls; Terranova Owns (BAC), (JPM), (GS), (XOM), (HAL), (EMC), (AAPL), (DELL), (MSFT), (QCOM); Terranova Owns (XLF) Feb. Calls

Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
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 (UA)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)

For Brian Kelly
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns April Gold Futures
Kanundrum Capital Is Short (EWY)
Kanundrum Capital Is Long U.S. Dollars vs. Short Singapore Dollar
Kanundrum Capital Is Long U.S. Dollars vs. Short Yen
Kanundrum Capital Is Long U.S. Dollars vs. Short Euro
Kanundrum Capital Is Long British Pounds vs. Short U.S. Dollars
Kelly Owns (FXE) Puts
Kelly Owns (ELX) Calls
Kelly Owns (QLGC) Calls



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