Fast Money Recap: The Bulls Are Running

The Fed's big 50 point cut sparked stocks Tuesday, and the crew at CNBC's "Fast Money" discussed why the bulls are running -- and in particular, what it means for financial stocks.

Pete Najarian proposes that Tuesday's action was all about the financials. As example, he points to the Financial Select Sector SPDR(XLF - Cramer's Take - Stockpickr) call options, where he saw a ton of volume. Jeff Macke advises that you can't be short financials now.

Guy Adami continues to like financials, especially after Lehman Brothers(LEH - Cramer's Take - Stockpickr) blew out the numbers. He feels that Goldman Sachs(GS - Cramer's Take - Stockpickr) and Morgan Stanley(MS - Cramer's Take - Stockpickr) will kill the numbers when they report. (RealMoney Take: Andrew White said recently, "Morgan Stanley shares will likely continue to push higher, based on higher highs in technical indicators -- including moving average convergence/divergence, on-balance volume and relative strength." To read more on what White said, click here.)

All Clear on Wall Street?

Did the Fed rate cut on Tuesday signal all is now clear for Wall Street and the credit problems? CNBC's Charlie Gasparino joined the crew to discuss if the brokers are a buy now. Gasparino feels confident about most of the brokers except Bear Stearns(BSC - Cramer's Take - Stockpickr). He maintains that Bear is the least diversified and is too tied to the credit markets.

However, if you do buy Bear, you only buy it for a possible takeover. Bear is the wild card in the broker sector for Najarian. Gasparino thinks the worst is over for Lehman and that Goldman will benefit the most from trading and a rebound in M&A activity. Macke says he is now bullish on the brokers.

Oil Thanks the Fed

Crude oil hit another record touching $81.51 and gold traded to $735, its highest level in 27 years. Dennis Gartman, publisher of The Gartman Letter, joined the show to comment on the action in commodities. The Fed decision shocked Gartman and he indicated that the stock market would continue to climb higher.

The Fed decision makes it clear to Gartman that the Fed isn't fretting inflation, so gold and oil will continue to go higher. Gartman's best trade ideas are Suncor Energy(SU - Cramer's Take - Stockpickr) and wheat.