'Fast Money' Recap: Uncomfortable Rally

NEW YORK (TheStreet) -- The markets came to life Tuesday on encouraging global economic signs.

The Dow Jones Industrial Average jumped 123.14, or 1.03%, to 12,076.11. The S&P 500 added 16.17, or 1.27%, to 1288.00. The Nasdaq gained 39.03, or 1.48%, to 2678.72.

Tim Seymour said on CNBC's "Fast Money" TV show that Wednesday's market opening will be the key as to whether the rally will continue. He said the S&P will need to break through 1295.

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

Seymour said he felt uncomfortable about today's rally, noting it felt more like a short covering. He said the markets benefited from good consumer price index and industrial production numbers out of China.

Joe Terranova said he's looking for the market to stabilize at current levels. He said he wanted to be in Freeport McMoRan (FCX) because he sees signs of industrial demand for copper in China. He also said the VIX has been trading in a benign fashion that does not suggest a washout further on the downside.

Karen Finerman said she didn't do much except to sell some puts. She said she sees the rally continuing and the puts coming in even more.

Guy Adami said the rally was something the bulls and bears needed, the bulls for the "obvious reasons" and the bears because they were scared of getting short after a sharp swing in negative sentiment. He said the S&P needs to get to 1325 and rallies need to be sold.

Stephen Weiss said he was not excited about the rally. He said the China numbers were too high and that the country's central bank will need to ratchet up interest rates to control inflation. He said the U.S. economy is also slowing.

Melissa Lee, the moderator of the show, pointed to a chart that showed a 8% surge in short interest in the S&P. Terranova said the market got caught short today, with materials, small caps and energy displaying some leaderhip.

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