'Fast Money' Recap: Bullish Sentiment

NEW YORK ( TheStreet) -- The markets closed higher Monday as the focus continued to be on Europe.

The Dow Jones Industrial Average jumped 85.18, or 0.71%, to 12,068.39. The S&P 500 added 7.87, or 0.63%, to 1261.10. The Nasdaq rose 9.10, or 0.34%, to 2695.25.

Steve Grasso said on CNBC's "Fast Money" TV show that the S&P is poised to move to 1300 and above. That optimistic forecast is a switch for him because he said he's been critical of the marketplace.

Guy Adami said the market technically looks fantastic and the S&P may be making a push toward 1275. He said the market seems to have discounted the eurozone debt crisis.

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

Joe Terranova said the next catalyst for the market may be coming from China which reports its consumer price report tonight. He said experts are looking for the number to come down to 5.5%.

Should that be the case, the prospects for oil and gold to move higher look good. Terranova said he liked the gold miners for his gold bet. He also liked Freeport McMoRan ( FCX) and Suncorp.

Melissa Lee, the moderator of the show, shifted the discussion to Priceline ( PCLN), which was up slightly on a strong quarter. Adami said the fourth-quarter guidance was disappointing, but he feels as the stock might be ready for a push toward $550.

CNBC tech reporter Jon Fortt said that cancellations were up because of the tough macro environment. He also said the online travel site was looking for acquisitions to make.

Lee said shares of Groupon ( PCLN), were down today, but they are still up significantly since its debut last week. Fred Moran, an analyst with The Benchmark Co. who initiated coverage of the stock with a price target of $32, said the stock has room to go higher.

Moran said Groupon has significant advantages over its competitors such as a salesforce of 5,000 people, 143 million subscribers and a vast merchant network.

He said Groupon has a new operating system that allows local businesses to reach consumers efficiently.

Scott Nations said that options trading on Groupon begins on Nov. 14, but that it would be impossible to borrow to short the stock because of the small float.

Lee asked Karen Finerman to comment on Polycom ( PLCM). Finerman had high praise for the company, which is involved in voiced and video conferencing. She said there are two big players in the space: Cisco ( CSCO) and Polycom.

She liked Polycom's secular growth story as well as the prospects for revenue growth in the high teens, big margin expansion and strong balance sheet. Terranova agreed, adding it could be a M&A traget.

For a technical view of the market, Ari Wald, of Brown Brothers Harriman, said the bears could come back in force if the S&P breaks below the 50-day moving average. On the other hand, the S&P could move higher if it breaks above the 200-day moving average.

He said the market appears to be consolidating, adding there may be some problems if it fails to move above 1275.

Lee brought in Peter Thorntorn, an analyst with KDP Investment Advisors, to commented on a Wall Street Journal report that a subsidiary of Dynegy -- its holding company -- was preparing a Chapter 11 bankruptcy filing. Thorntorn said the bondholders have filed lawsuits over the restructuring moves the company has made.

For the money trade, Andy Busch, of BMO Capital Markets, said he favored trading the euro-U.S. dollar in a range and buying the euro on dips.

In the tweet section, there was some discussion of Jefferies ( JEF) as it tries to separate itself from the MF Global scandal.

Grasso wondered what the catalyst will be for Jefferies moving forward. Scaramucci said Jefferies CEO Richard Handler had been forthright in discussing the company's exposure to European bonds. He said the firm is well-managed, cheap relative to book value and is the largest standing investment bank in the U.S.

Lee shifted the discussion to the policymakers dealing with the budget deficit. Jason Trennert, of Strategas, said it was likely the congressional supercommittee would wind up agreeing to $600 billion in cuts and kicking the remainder to 2012. He said that would not be a good signal for the markets.

In the final moves, Scaramucci liked General Motors ( GM). Nations was skeptical in the rally in gold. Grasso liked Key Energy Services ( KEG). Adami favored Transocean ( RIG), while Finerman liked Polycom. Terranova liked Watson Pharmaceuticals ( WPI) with a stop at $62.91.

-- Written by David Tong in San Francisco.

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