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'Fast Money Recap': Suspicious Rally

The trading panel were leery of today's rally.



) -- The markets bounced backed Wednesday on encouraging pending home sales data.


Dow Jones Industrial Average

surged 225.52, or 2.52%, to 10,249.54, and the

S&P 500

added 27.67, or 2.58%, to 1,098.38. The


jumped 58.74, or 2.64%, to 2,281.07.

The panelists on


's "Fast Money" TV show were leery about the strength and sustainabilty of the rally. Tim Seymour said that the tape still looks "dangerous" and that a lot of people were on the sidelines.

Guy Adami agreed, saying both shorts and longs have lost money the past two days and that the market needs to close above 1,103.

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 onTV

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Karen Finerman said the tape remains "scary" and "that we could be down as much tomorrow as we were up today."

Brian Kelly said he believes "long-only managers" will maintain their long positions in the "eye of the storm" for the remaining month of this quarter.

Adami said


(V) - Get Report

looks like a good stock to invest in if "you're bullish about the market" for the rest of the week. He said Visa got a recent upgrade and looks good at around $70 despite being a tad more expensive than


(MA) - Get Report


Melissa Lee, the moderator of the show, said energy names led today's rally. She brought in Collin Gerry, analyst with Raymond James, who upgraded two shallow-water drilling companies --




Hercules Offshore


-- which did not fall under the recently imposed six-month moratorium from the Obama administration.

He also said companies like


(HAL) - Get Report



(SLB) - Get Report

will benefit from the expertise they can provide in this situation.

Natural gas also figures to a big winner. Terranova tapped


(APA) - Get Report


Southwestern Energy

(SWN) - Get Report

as winners in this environment.

Terranova said he bought shares of


TheStreet Recommends

(RIG) - Get Report

today based on stable oil prices, stability in the equities and analyst reports he read showing improving valuations.

Jon Najarian believed the rally picked up after President Barack Obama and Vice President Joseph Biden took the unusual step of touting a strong jobs report two days before the release date.

Don't Miss Top 10 'Buy' Rating Stocks Under $5

Is a bubble brewing in the gold markets? According to a report, Iran is selling 45 billion euros to buy gold and silver. Kelly said that could lead to a bubble-like scenario if other countries join in and buy the precious metal. Terranova, though, said gold still hasn't reached its top.

Lee shifted to Jim Goldman, a


reporter at the All Things Digital conference in California, where he interviewed FCC Chairman Julius Genachowski about broadband policy.

Genachowski said more smart policies are needed to recover spectrum to meet the growing needs of smart phone and iPads. On the issue of net neutrality, he said his agency is working working with Congress on a set of proposals to allow the Internet to continue to be a valuable source for investment, job creation and innovation.

The FCC chairman acknowledged more needs to be done to increase completion in step top boxes for cable TV in the living room.

After the interview, the panelists offered their picks in the space, with Adami choosing


(AKAM) - Get Report

, Terranova tapping

Juniper Networks

(JNPR) - Get Report

, and Kelly selecting


(VMW) - Get Report

. .

Finerman argued the case for a circuit breaker after what happened today to the stock of


(DBD) - Get Report

, which plunged 35% on a report that its executives had been accused of fraudulent accounting practices, only to bounce back to the upside after the situation was toned down to a "settlement."

Finerman said a five-minute hold would have worked to allow cooler heads to prevail and save a lot of grief for shareholders.

Is the global economic moving toward depression levels? David Levy, chairman of the Jerome Levy Forecasting Center, said there's already evidence of a kind of depression in the U.S. He said the financial sector is still reeling, the inventory build is coming to an end, and residential building is on a downtrend.

Levy said there are other dominoes overseas, with Europe moving into a depression and China struggling with real estate bubble.

Asked what it would take to turn things around, he said there needs to be more public investment, less consumption spending and more emergency aid to state and local governments. He said there's a 60% chance of the U.S. slipping into a recession in 2011.

In the final trades, Seymour liked


(KMB) - Get Report

. Adami liked Apache while Finerman liked


(FLS) - Get Report

. Terranova said he liked

Market Vectors Russia

(RSX) - Get Report


Don't Miss Top 10 'Buy' Rating Stocks Under $5

-- Written by David Tong in San Francisco

To watch replays of Cramer's video segments, visit the Mad Money page onCNBC


"Check out

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

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