Three Trades To Make After Draghi's Comments

On Friday, CNBC’s "Fast Money" traders shared 3 moves to make after Draghi said the European Central Bank would not be boosting rates any further.

Guy Adami recommended the iShares Barclays 20+ Yr Treas.Bond (ETF) TLT. Considering what is going on in the world, U.S.’ 10-year bond at 1.8 percent looks “pretty attractive against a landscape of negative interest rates globally,” the analyst assured.

Up next was Tim Seymour, who said he would be a seller of the iShares Russell 2000 Index (ETF) IWM into a range. “Going into the Fed, this is where I can line up with these guys,” he explicated. “The markets have had a straight line higher off of extreme oversold conditions, and the small cap stocks outperformed the S&P 500 by 600 bps in the last three weeks. I could fade that. I can hedge my portfolio with that. It’s a tactical call,” he stated. However, he noted, stocks are going sideways, and valuations are no especially bad.

Finally, Brian Kelly recommended buying the U.S. Dollar. Going into the Fed, “this opens the door for the Fed to be at least more hawkish,” he expounded.

 

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

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