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Fast Money Recap: The Bulls Are Running

Dennis Gartman and Charlie Gasparino joins the crew for Fed day.

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) - Get Financial Select Sector SPDR Report

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

undefined

blew out the numbers. He feels that

Goldman Sachs

(GS) - Get Goldman Sachs Group Inc. (The) Report

and

Morgan Stanley

(MS) - Get Morgan Stanley Report

will kill the numbers when they report. (

RealMoney

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TheStreet Recommends

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)

. 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) - Get Suncor Energy Inc. Report

and wheat.

Rate Cut Raises the Roof

The equity markets problems all began with concerns of poor lending practices in the housing market. Was the big rate cut on Tuesday a signal from Ben Bernanke that he will not let housing blow up?

Adami declares that housing stocks are back for a trade. He likes

Hovanian,

(HOV) - Get Hovnanian Enterprises Inc. Class A Report

which has 60% of the float short. (

RealMoney

Take: Jim Cramer said recently, "Toll Brothers should buy Hovnanian." To read more on what Cramer said,

click here.)

Additionally, he recommends

Toll Brothers

(TOL) - Get Toll Brothers Inc. Report

and

Pulte Homes

(PHM) - Get PulteGroup Inc. Report

for a trade. Finerman continues to speak highly of

Home Depot

(HD) - Get Home Depot Inc. (The) Report

, which she owns, for its cheap valuation. She has been wrong on HD so far, but she is sticking with it.

Word on the Street

Cummings

(CMI) - Get Cummins Inc. Report

and

Caterpillar

(CAT) - Get Caterpillar Inc. Report

exploded higher on the Fed cut. Najarian thinks that CAT has much more upside to come. (

RealMoney

Take: Jim Cramer said recently, "Caterpillar's on the move: natural to go out at $75, there I would buy the September 70 calls." To read more on what Cramer said,

click here.)

Global Notes

Emerging markets like China and Brazil soared on the rate cut. Tim Seymour, Principal at Red Star Asset Management, joined the crew to discuss the emerging markets. Seymour likes gold and

Brazil ETF

(EWZ) - Get iShares MSCI Brazil ETF Report

.

Face2Face

The Fast Money team takes mail from viewers. Ken from Kansas writes, "What happened to the recommendation to get out of gold if the Fed dropped its rates?" Adami reiterated his bearish stance on gold.

Evan from Connecticut wants to know, "Should I sell my October $195 call options on

Goldman Sachs

(GS) - Get Goldman Sachs Group Inc. (The) Report

now or is there still more upside?" Najarian feels strong about GS, but you should take half the position off before earnings.

Tory writes, "What is your outlook for

Tiffany's

(TIF) - Get Tiffany & Co. Report

as the holiday season approaches?" Macke is positive about Tiffany's and

Blue Nile

(NILE) - Get BitNile Holdings Inc. Report

. Macke says this stock is going over $100 and you have to be long it.

Pops & Drops

Pops-

Caterpillar

(CAT) - Get Caterpillar Inc. Report

traded up 5%. Macke suggests getting long CAT.

Target

(TGT) - Get Target Corporation Report

popped 6% off the Fed rate cut. Finerman loves this stock.

Alcoa

(AA) - Get Alcoa Corporation Report

traded up 5%. Adami believes that Alcoa could be bought out by

BHP Billiton

(BHP) - Get BHP Group Limited American Depositary Shares (Each representing two) Report

.

BHP Billiton

(BHP) - Get BHP Group Limited American Depositary Shares (Each representing two) Report

traded up 6%. Najarian believes in the growth story of this stock.

Wendy's

(WEN) - Get Wendy's Company (The) Report

popped 6% on takeover speculation. Finerman hints that these rumors have been around for awhile.

DROPS-

E*Trade

(ETFC) - Get E*TRADE Financial Corporation Report

fell 1.5% after lowering its profit outlook. Najarian was impressed the stock rallied back from Monday's slide. He is short this stock.

Boeing

(BA) - Get The Boeing Company Report

fell 1% after Bank of America cut the price target. Adami says buy it with both hands. (

RealMoney

Take: Jim Cramer said recently, "Boeing's on time, according to press reports, which means a September 95 call play might be important." To read more on what Cramer said,

click here.)

Final Trade

After an exciting day in the markets, the team signs off with their final trades.

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