'Fast Money' Recap: Gold Asset Bubble?

NEW YORK (TheStreet) -- The markets rallied Wednesday on some encouraging economic data.

The Dow Jones Industrial Average jumped 61.29, or 0.63%, to 9786.87, while the S&P 500 rose 7.91, or 0.75% to 1065.48. The Nasdaq added 13.60, or 0.64%, to 2123.93.

Steve Grasso said on CNBC's "Fast Money" TV show that the market is definitely bent on an economic recovery.

Guy Adami said he was confused with the price action on Alcoa(AA Quote) off its earnings report. He said the stock enjoyed a huge volume day but is ridiculously overvalued. He said the company is about at the same price it was a year ago despite being down 74% on the revenue side year over year.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Melissa Lee shifted the discussion to some comments from House Speaker Nancy Pelosi who said that the windfall profits tax and public option are still on the table. Karen Finerman said the rhetoric was overdone today, adding the tide will turn multiple times before the issue is resolved.

Adami said he agreed with Finerman's approach to trading health-insurer stocks: namely, you buy when the comments are at its worst and sell when the rhetoric is at its best.

Lee said gold hit another record high and is up $55 in the past five trading sessions. That prompted Adami to sound a cautionary note. He warned investors that they need to understand what they own and the price they will pay when the price collapses. "It can take all your profits in one fell swoop," he said.