Will Stress Tests Trigger Wild Friday?

Are we looking at a wild ride on Friday afternoon? Results of European bank tests are due after Europe closes, but while we’re open!

Some are calling it a moment of truth in a simmering debt crisis; on Friday European regulators will release the results of "stress tests" on 91 banks across the continent.

The hope is that the exercise, like stress tests carried out on 19 banks here in the US a year ago, will help shore up confidence. (As you remember, here in America 10 banks were told to raise about $75 billion in extra capital.)

What should you expect?

Most of the 91 banks tested are expected to pass — but analysts say in order for the tests to have any credibility some must not pass and receive a mandate to raise more capital.

Those perceived to be candidates for fresh capital include some of the smaller Spanish banks hit by the real estate collapse, and regional German banks that made oversized bets on global financial markets before the 2008 meltdown. However none of these banks are listed on stock markets.

The question for investors becomes how the results impact the big players; Germany's Deutsche Bank, Britain's Barclays and France's BNP Paribas to name a few.

Published reports suggest that it's a no win situation. Bad news could send investors running for the exits, while too rosy a picture may lead to skepticism - also triggering a sell-off.

We'll be watching! Tune into Fast Money at 5p ET for the latest on the results as well as how to trade them!

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Trader disclosure: On July 22, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (F), (MSFT) (NOK); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman owns (AAPL); Finerman owns (C); Finerman owns (JPM); Finerman’s Firm owns (JPM); Finerman’s Firm owns (MCD); Finerman’s Firm owns (RIMM); Finerman’s Firm is short (IJR); Finerman’s Firm is short (MDY); Finerman’s Firm is short (SPY); Kelly owns (BP) puts; Kelly is short (GS); Pete Najarian owns (C) Calls; Pete Najarian owns (CNI); Pete Najarian owns (DD) Calls; Pete Najarian owns (MU) Call spread; Pete Najarian owns (RSH), short calls; Pete Najarian owns (SSCO); Pete Najarian owns (TCK); Pete Najarian owns (VLO)

For Brian Kelly
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