'Fast Money' Recap: Dec. 30

Investors had something to cheer about Tuesday as the markets rallied on a thin trading day.

The Dow Jones Industrial Average rose 184.46, or 2.2%, to 8668.39, while the S&P 500 added 21.22, or 2.4%, to 890.64. The tech-heavy Nasdaq jumped 40.38, or 2.7%, to 1550.70.

Pete Najarian said on CNBC's "Fast Money" TV show that the market was very volatile in the last 15 minutes when 300 million shares traded.

Quint Tatro said it was nice rally but warned that Treasuries are up again. He said a sustained rally will occur only when Treasury money comes out of that sector.

Jeff Terranova said it's been remarkable that the market has been able to digest horrible economic data the past six weeks. Jeff Macke said his takeaway from today's session is that "it's about regaining trust."

Melissa Lee, the moderator of the show, asked the panel to comment on the $5 billion federal bailout of GMAC, the financing arm of General Motors(GM Quote).

Macke, who has maintained all along that the federal bailout of the auto sector has been "over the top," said it's going to cost GM about $400 million to pay the interest on the preferred shares the government is buying.

Terranova said the way to play this situation is to pick up Toyota Motor(TM Quote). "Forget GM," he said.

Najarian said he believes the 0% loans and lower credit scores will drive people into the showrooms, but Macke insisted that neither GM's self-parking system or low-interest loans make any financial sense.