NEW YORK (

TheStreet

) -- The markets rallied Monday on the strength of the financial and technology stocks.

The

Dow Jones Industrial Average

gained 81.36, or 0.78%, to 10,554.13 and the

S&P 500

added 12.36, or 1.11%, to 1,121.91. The

Nasdaq

jumped 43.23, or 1.93%, to 2,285.71.

Tim Seymour said on

CNBC

's "Fast Money" show that the market looks like it's ready to rebound.

Guy Adami said now the attention will be focused on the S&P at the 1,131 and 1,135 levels. "That's going to be critical."

Jon Najarian said more M&A activity could lift what has been a range-bound market higher.

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 she was surprised to see how strong the market rally has been in September. She said she used the opportunity to sell some stocks.

Adami cautioned that a lot of investors are gamblers. Using a football metaphor, he said, "They don't pay you at half time. There's still a second half of September to be played."

Seymour concurred, saying September historically has been a "terrible" month and a lot of stock charts look overbought.

Melissa Lee, the moderator of the show, shifted to the financials, which got a lift from weaker-than-expected Basel III rules, and asked Dennis Gartman to comment.

Gartman said the new capital-raising rules provide far too much time for the European banks to act. He said it's possible to have two to three financial meltdowns during the eight-year span of the rules. He said 2015 would have been a much better deadline than 2019.

Najarian said moving up the deadline could have caused a correction.

Lee noted a

Bloomberg

story that

Microsoft

(MSFT) - Get Report

is considering debt sales to raise money for a dividend and buyback.

Patty Edwards said she didn't know whether that news would prompt her to add to her Microsoft position, but she said she was glad that a large technology company is finally using its huge cash reserves to reward shareholders.

Lee shifted to an interview with Jim Simons, the founder of

Renaissance Technologies

, in which they discussed a number of topics. Simons said his retirement had been planned for some time and had nothing to do with the economy. He also said he remained committed to the company's hedge funds.

On the flash crash, Simons said it was wrong to compare that episode with the Crash of 1987, which was far deeper and longer in duration. Najarian, though, differed, saying some hedge funds should be investigated and fined for stealing ahead of the bid and offer.

On the lack of science and math education in this country, Simons called it a deplorable situation. He said most of the 90 PhDs working in his company have come from abroad. He said American high school students are neither prepared or inspired to pursue science and math at higher levels.

In the charts of day, Lee noted that

Caterpillar

(CAT) - Get Report

and

Deere

(DE) - Get Report

were at their 52-week highs. Seymour credited the lift to the import nature of China's data, which he called "fantastic."

But Adami said Caterpillar looks as if he forming a double top, adding investors might want to take profits.

Shifting to the Bush tax cuts, Jeremy Zirin, UBSs wealth management research chief equity strategist, said he expects a one-year extension of the cuts or a compromise because neither party wants to see the cuts expire.

Zirin said an expiration of the cuts would send the market south and severely punish stocks like the telcos and utilities.

Lee shifted to a report that

Hewlett-Packard

's

(HPQ) - Get Report

had reached agreement to buy security software company

ArchSight

(ARST)

for $1.5 billion. Finerman and Adami expressed surprised that HP, still without a CEO, has been so active on the acquisition front.

Colin Gillis, an analyst for BGC Partners, said investors will be checking to see what

Cisco

(CSCO) - Get Report

says Tuesday at its analysts meeting. He expects the company will update its outlook. He said he would be interested to see what Cisco has to say about the Internet economy and digital living room.

He said Cisco will be challenged to match harder comps in upcoming quarters.

For a chartist view of the markets, Carter Worth, of Oppenheimer Asset Management, said he presumed the market will spend a little more time here before moving to 1,140. He said he would fade out of yield moves in the telco and utility stocks and get long energy.

Lee shifted to another tech company,

Intel

(INTC) - Get Report

and spoke to its chief technology officer Justin Rattner. He said the company will be shipping its Sandy Bridge chips in 2011. He called the chips transformative for the PC platform because of the integration of processors and graphics engines on the same chip.

In the final trades, Seymour liked

Exxon

(XOM) - Get Report

. Adami said he liked Cisco, while Finerman said it was time to sell a little

Yum! Brands

(YUM) - Get Report

. Najarian said he was adding to his stake in

Red Hat

(RHT) - Get Report

.

--Written by David Tong in San Francisco.

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David Tong.

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