'Fast Money' Recap: Market Melt-up

NEW YORK ( TheStreet) -- The markets rallied to the close the week on a better-than-expected jobs report.

The Dow Jones Industrial Average surged 122.06, or 1.1r7%, to 10,566.20, while the S&P 500 added 15.72, or 1.4%, to 1,138.70. The Nasdaq jumped 34.04, or 1.40%, to 2,396.35.

Gary Kaminsky said on CNBC's "Fast Money" TV show on that he believes the market is entering a "melt-up" phase similar to the one in November and December. He said that is going to leave portfolio managers going to sleep at nights with only one worry -- underperforming the S&P.

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 on TV

Tim Seymour said the market rally was supported by a lot of "good data" this week from nonfarm payroll numbers, consumer credit and manufacturing data. He said technically a lot of charts broke through and those that tried to short Europe got "smoked."

Pete Najarian noted a strong pickup in options activity and a sense that consumer confidence is rising and M&A is picking up.

Kaminsky said bankers actually like the M&A chatter because it motivates buyers and sellers.

Melissa Lee, the moderator of the show, said the deal-making is helping to lift shares of Goldman Sachs ( GS). Seymour agreed, adding Goldman will find some way to make money in this environment. "You stay on this trade. It goes higher," he said.

Najarian said the the boost in confidence in the business sector could be seen in Intuitive Surgical ( ISRG) which is doing well because hospitals feel confident about purchasing its expensive robotics equipment.

Doug Kaass, founder and president of Seabreeze Partners and a columnist for TheStreet.com, said he was reluctant to chase this rally. He said he sees a slow rate of economic growth that will be manifested in the government bills coming due and higher tax and interest rates.

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Brian Kelly also was leery about the market. He said today's rally doesn't square with the fact that there were still job losses in February and news from where two large copper companies saying demand isn't strong in China and China deciding to shut refineries in March.

Seymour, though, disagreed, saying the market rally is being led by the financials and consumers, and not by commodities.

Lee noted that Apple ( AAPL) was up 4% on the company's announcement of an April 3 debut for the iPad. Najarian said a good derivative trade would be in Akamai ( AKAM), which handles the data delivery systems for smart devices like the iPad and iPhone.

Lee brought in Charles Kantor, managing director with Neuberger Berman, to talk about where he sees M&A activity percolating. He said a good bet would be the energy sector in oil and gas exploration. He said companies in that space are under shareholder pressure to maximize the net present value of their reserves.

He also said there is room for more M&A activity because it is cash-based. He said there's a trillion dollars sitting on the sidelines that needs to be deployed. He also said the M&A activity will take on a global nature.

He said deals will go through if the strategy is "logical" in a way where the cost synergies are easy to understand, cross-revenue opportunities are believable and balance sheets are maximized in a shareholder-friendly way.

Lee brought in Richard Gelfond, CEO of Imax ( IMAX) to talk about the impact of increased competition for 3-D screens. He said there's been a lot of "noise" from other digital theater companies, but he said his company is on top because it spent $100 million to develop a superior sound and screen system.

Kaminsky wondered whether IMAX's future might be impacted by the movie studios that decide how many 3-D movies to make.

In the final trades, Kelly was short the yen and long the U.S. dollar. Seymour liked the Palladium ETF ( PALL). Kaminsky liked Terex ( TEX), while Finerman liked Bank of America ( BAC). Najarian liked Patriot Coal ( PCX).

-- Written by David Tong in San Francisco

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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

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