Trading Big Ben's Speech: To QE3 Or Not To QE3?

Federal Reserve Chairman Ben Bernanke is set to give an

and traders will be looking for any clues on what Bernanke may do next to help spur the domestic economy from falling into a double dip recession. Bernanke is set to speak at 3:45 today at a speech at the International Monetary Conference in Atlanta, Georgia. Many are expecting an impact from the speech, and if Ben is ultra-dovish, as he has been, then it could be risk on this afternoon. Many are speculating that Bernanke and the rest of the Federal Reserve are going to keep its ultra-loose monetary policy for longer than previously thought. As the second round of quantitative easing comes to end, there has been speculation for a third round of quantitative easing, although no official word of a "QE3" has been mentioned. Dallas Fed President Richard Fisher is on CNBC saying that May's weak jobs report was not going to change his mind regarding additional stimulus. Fish said that printing more money is not the solution to the problem. If traders believe that Big Ben will be even more dovish to show that he is firmly behind the support of the U.S. economy, then high beta names are likely to fly. The markets are currently very oversold, so any bounce is likely going to be short and powerful, so traders may want to enter into positions early today and look to close by the end of today, or perhaps early tomorrow morning. Names like Baidu

, F5 Networks

, salesforce.com, inc.

and VMware

could see a short term pop today.