The markets bounced back sharply Tuesday after

Federal Reserve

Chairman Bernanke eased investor fears of bank nationalization.

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The

Dow Jones Industrial Average

jumped 231.54, or 3.3%, to 7,346.32, while the

S&P 500

added 29, or 3.9%, to 772.33. The

Nasdaq

rose 51.26, or 3.7%, to 1,438.98.

Dylan Ratigan, the moderator of

CNBC

's "Fast Money" TV show, said Bernanke used language that backed away from a need to nationalize the banks.

Pete Najarian said it was an impressive rally that extended across all sectors. He also said Bernanke exuded a lot of confidence that "we haven't seen in a long time."

Tim Seymour said there was a lot of skepticism in the rally, with "a ton of short covering." Meanwhile Guy Adami said he believes the markets can go higher if the banks stop going down.

Ratigan shifted the discussion to the trading in the oils and metals. Seymour said trading in gold, silver and platinum is getting crowded as investors shift their attention to crude oil and base metals.

With oil fetching $40 a barrel, he said he likes refiners such as

Chevron

(CVX) - Get Report

,

ConocoPhillips

(COP) - Get Report

and

Exxon Mobil

(XOP) - Get Report

.

That prompted a skeptical reply from Jeff Macke who didn't believe oil is headed up.

Ratigan briefly asked the panel for their comments on some of the tech names that were rallying today. Najarian said he is high on

Yahoo!

(YHOO)

not because of another round of overtures from

Microsoft

(MSFT) - Get Report

but because of an impending restructuring plan. "That's the big news," he said.

Najarian said the most impressive tech name was

Apple

(AAPL) - Get Report

and the favorable reaction it is getting to its Safari 4 browser.

Ratigan returned to the banking crisis, bringing in Joe Terranova to talk about the role of four key players in stabilizing the markets. Terranova said the first player, President Obama, needs to be the "cheerleader" who can strike an optimistic, "yes-we-can" attitude.

Bernanke, the second player, is the "security blanket for the market" and the "guy we want talking to the market," he said.

The third player is Treasury Secretary Tim Geithner whose job it is to figure out to value the toxic assets in the banking system. Congress, the fourth player, needs to "entertain the market" by grilling the ex-CEOs who ran their financial institutions to the ground, he said.

Ratigan brought in William Issac, former FDIC chairman, into the nationalization debate. Issac said he doesn't think the country's large banks should be nationalized. "I don't think it's even feasible," he said.

Instead Issac said it's time to move away from the blame game and fix the banking system.

Jason Trennert, chief investment strategist for Strategas Research Partners, was skeptical of the upcoming stress tests that the government plans to use on the nation's largest banks. If every bank passes the test, it's not much of a test, he said.

As for a trading strategy, he said he's bullish on gold and energy because he sees nominal GDP growth ahead.

In a segment called "Value Hunters," some of the members of the trading panel gave thumbs up to these bargain stocks whose price-earnings ratios have fallen to 10 or below.

They included

Atria

(MO) - Get Report

,

IBM

(IBM) - Get Report

,

Lockheed Martin

(LMT) - Get Report

,

HP

(HPQ) - Get Report

, and

XTO Energy

(XTO)

.

Has the market hit a bottom? Ratigan told the panel that five out of seven chartologists who appear on the show say the market is heading down, as evidenced in the downward drift of the 200-day and 50-day moving averages.

He also said another indicator of a bottom has been the 741-level of the S&P. Adami agreed, saying it is a "very important" level that was also tested back on Nov. 21, 2008. Adami said he sees the S&P easily adding another 100 to 150 from here.

Finally, Ratigan touched on gold as an indicator. Seymour said the recent run in gold has been speculative, driven in large part by the ETFs. "It looks very heavy here," he said.

In the final trades, Macke was for

Morgan Stanley

(MS) - Get Report

, Adami for

Abbott Labs

(ABT) - Get Report

, Seymour for

Sasol

(SSL) - Get Report

and Najarian for Hewlett-Packard.

"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.