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There seems to be little doubt on Wall Street that the outcome of the FOMC meeting on Wednesday will move markets.But pros can’t agree what the Fed will actually do. Some think that recent economic data out of Europe will compel the US central bank to act aggressively to prevent a slowdown from rippling across the Atlantic.Others say the Fed will keep their powder dry so they can make a big move in the event Spain or Italy melts down.But no matter what happens the Fast Money pros agree there are trades to be made. Following are the most likely scenarios and the resulting moves to make.
Scenario 1:-Full-Blown QE3-More Twist-Extend Low-Rate GuidanceThe pros say this kind of aggressive action will drag down the US dollar. That's a tailwind for the S&P broadly and benefits commodities and resource related trades. “In this scenario, I’d go long ags and McDonald’s for reduced input costs,” says trader Joe Terranova, chief market strategist for Virtus.
Other Fast Money pros say materials , industrials , energy -- or other weak dollar trades -- would all benefit from this scenario.
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