'Fast Money' Recap: Financials Show the Way

The markets picked up momentum Thursday as the rally moved into its third day.

The Dow Jones Industrial Average jumped 239.66, or 3.46%, to 7,170.06, while the S&P 500 rose 29.38, or 4.1%, to 750.54. The Nasdaq added 54.46, or 4%, to 1,426.26.

Guy Adami said on CNBC's "Fast Money" TV show it's one of the most significant rallies he's seen for a while. He added the S&P is set up to move to 900.

Both Tim Seymour and Pete Najarian voiced concern about the VIX in the past few days.

Najarian said he was impressed with the hefty moves in financial stocks such as Morgan Stanley (MS Quote), Goldman Sachs (GS Quote) and Northern Trust (NTRS Quote).

Najarian attributed those moves to the market's favorable response to regulatory changes down the road. "That tells you people like what they are hearing about the mark-to-market rule, the uptick rule, etc. They are buying into it," he said.

Karen Finerman agreed, saying the mark-to-market chatter is definitely behind the big move in bank stocks. Still, she remained skeptical of the rally because of its size and speed.

Seymour tied the rally in the equities to the better-than-expected results of huge Treasury offerings and 30-year bond issues this week.

Melissa Lee, the moderator of the show, shifted the discussion to the 13% surge in General Electric (GE Quote) despite a cut in its credit by S&P to AA+ and a stable outlook.

Najarian said the stock began its move up at $6.60 when both the level of calls and trading volume started to pick up. Lee astutely pointed out the adjusted book value of the stock happens to be $6.67.