NEW YORK ( TheStreet) -- The markets rallied Tuesday off an encouraging start to the earnings season. The Dow Jones Industrial Average jumped 69.78, or 0.56%, to 12,42.47. The S&P rose 11.37, or 0.89%, to 1,292.07. And the Nasdaq was up 25.94, or 0.97%, to 2,702.50. Tim Seymour said on CNBC's "Fast Money" TV show that he believes in this rally. He said Europe is not that "much of a basket case," adding there is good U.S. data and evidence that China is doing a lot more to get its economy moving. Joe Terranova, who had been in a defensive posture going into this year, detected a shift in the market, with some of last year's laggards such as industrials, financials and homebuilders leading the current charge. He also said the market is repricing Europe so that it doesn't have a negative onus on the markets. Terranova said he is not so much risk-on as he is being less defensive at the start of the year. 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
Dan Nathan was not so optimistic about the rally, saying the higher the market goes, the bigger the drop for the remainder of the year. Mike Khouw said in many instances investors have been trying to catch a pop in stocks like Bank of America ( BAC) and Netflix ( NFLX) that had been down for quite a while. But he said it's hard to believe Bank of America's troubles are behind it. For a technical perspective, Chris Verrone, head of technical analysis for Strategas, said the markets do look a little better, with the S&P taking a good shot today at 1293. However, he said he wouldn't be surprised if there is pullback, in which case he would stick to mega-caps, which usually come on strong when the market is late in the cycle. He especially liked two mega stocks: Intel ( INTC) and Pfizer ( PFE). Melissa Lee, the moderator of the show, noted a Bloomberg report saying that Microsoft's ( MSFT) PC shipments might be worst than expected because of floods in Thailand.