Dylan Ratigan hosted CNBC's "Fast Money" show Tuesday night. He started the show with a discussion of the single biggest advance for the markets in nearly two weeks. Guy Adami explained that people who sold this market, such as hedge fund managers, have been forced to turn around and buy it. He says "we are still in a range and will test 9500 next on the Dow."Tim Seymour said the volatility we're seeing is being driven by enormous amounts of short-covering. He pointed out that it's encouraging that the market shrugged off a weak consumer confidence number. Karen Finerman said this move doesn't feel any more healthy than moves of equal magnitude down. She says "there is no focus on fundamentals at all." Jeff Macke told viewers to relax, take a step back and sell the rips. The "Chart of the Day" was the volatility index. Ratigan explained that when the volatility index spikes dramatically higher, the stock market sees a big advance six months later. Macke said this is a trader's market, and you have to be fast and two-sided. Ratigan brought up the intensity in the movements of bank names today to the upside, as with Citigroup ( C). He mentioned that Goldman Sachs ( GS) didn't participate in the bank rally. Finerman mentioned that market rumors were swirling on the Street that Goldman Sachs and Morgan Stanley ( MS) were short Volkswagen ( VLKAY). Shares of Volkswagen soared 86%. Both Goldman Sachs and Morgan Stanley denied the rumors. Macke explained that Goldman said it had a little bit of exposure and Morgan said it had none at all.