3 Stocks I Saw on TV
NEW YORK ( TheStreet) -- The markets rallied again Wednesday for the third consecutive session. The Dow Jones Industrial Average jumped 143.95, or 1.29%, to 11, 320.71. The S&P 500 rose 15.25, or 1.31%, to 1177.60. The Nasdaq added 21.63, or 0.88%, to 2467.69. Guy Adami said on CNBC's "Fast Money" TV show, that the market had an "outstanding day" that was marked by the selloff in gold. He said it was impressive to see the S&P close on the highs of the day, adding he expects the market to rally again on Thursday. For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
Joe Terranova said the technical breakdown in the gold led to a reallocation of capital into equities. Karen Finerman said she hoped the market rallied because of oversold conditions and not because of the possibility of a Bernanke lifeline on Friday from Jackson Hole, Wy. Tim Seymour and Dennis Gartman had opposing views on gold. Seymour said it would be wrong to think that gold is a bubble. He downplayed the pullback in gold, saying it just returned to where it was priced on Tuesday. He said today's plunge of $104 should be viewed in the context of an extended rally in which gold has outperformed the S&P in the past eight years. Gartman said he's detected a fundamental psychological change that makes him believe the gold bubble has burst. He said gold is a bubble when taxi cab drivers start talking about buying and selling gold. Carter Worth, of Oppenhemier Asset Management, added to the bearish sentiment when he said he sees gold coming down to $1600. "It could happen quickly." He said the better trade might be platinum, an industrial and precious metal that offsets gold's volatility. He said the key to platinum is that it's not a popular metal. Worth also said he would be buying the S&P because it is starting to find support after the recent market plunge. Bank of America ( BAC) was the big winner in the financial sector, rising 10.95% for the day. Lee said an analyst with Raymond James had rated it a buy and put out an aggressive price target of $16 over the next 12 months.
Finerman said it was a very bullish call, adding nothing had change fundamentally at the bank since last night. Seymour said Citigroup ( C) might be the better of the two because Citibank has more earnings potential. He said Bank of America will dilute its earnings potential by selling off various assets. Terranova said he liked Wells Fargo ( WFC) for its stock buyback and loan growth. He said it is well positioned to take advantage of a refi boom next year if the housing industry rebounds. Is the market showing signs of a bottom? Jeff Saut, of Raymond James, said today's market looks very much like the declines in October 1978 and 1979 that led to a retesting of lows before a subsequent 13% rally. Saut said he liked energy names like Energy Partners ( EP) and Linn Energy ( LINE) as well as rail names like Norfolk Southern ( NSC) and Kansas City Southern ( KSU) S In the volatility playbook, Brian Kelly noted that the VIX is still above 35, indicating there is still a lot of fear in the market. He said investors can get some protection on the downside and put that volatility to work through a call spread on the VIX. Is it time to buy Amazon ( AMZN) after a 15% drop in the past month? Terranova said he added the stock to his portfolio because he liked its earnings growth. In the final moves, Seymour liked Tenaris ( TS). Adami liked CSX ( CSX) while Finerman liked Macys ( M). --Written by David Tong in San Francisco. To contact the writer of this article, click here: David Tong. To follow the writer on Twitter, go to http://twitter.com/davidtong. To submit a news tip, send an email to: firstname.lastname@example.org. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. Follow TheStreet.com on Twitter and become a fan on Facebook.