'Fast Money' Recap: Rally Has Legs

NEW YORK ( TheStreet) -- The Dow Jones Industrial Average broke through 13,000 on Tuesday on a rise in consumer confidence.

The Dow gained 23.61, or 0.18%, to 13,005.12. The S&P 500 was up 4.39, or 0.32%, to 1371.98. The Nasdaq jumped 20.60, or 0.69%towas up 2.41, or 0.08%, to 2966.16.%,2,986.76.

Guy Adami said on CNBC's "Fast Money" TV show that he sees the S&P heading up another 50 points or so.

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

Keith McCullough expressed concerns about the underperformance of the transports and housing. Dennis Gartman also was leery of the transports and the impact of oil prices on airlines.

Apple ( AAPL) surpassed $500 billion in market cap in after-hours trading.

Melissa Lee, the moderator of the show, said Apple's spectacular rise has overshadowed a number of stocks that have actually turned in a better performance in the past three years. They included Humana ( HUM), with an annualized three-year return of 315%; Lululemon ( LULU), 187%; Las Vegas Sands ( LVS), 185%; Ulta ( ULTA), 146%; and Sirus XM ( 141%).

Lee brought in Douglas Yearley, CEO of Toll Brothers ( TOL) to comment on the signs of life coming from the housing industry.

Yearley said the beginning of the spring housing season felt great. He said his company reported a 45% jump in orders in the first quarter and a 35% increase in backlog. He said the clientele is strong, with 20% of the buyers purchasing in cash and the remaining putting down a sizable downpayment.

He said New York has been its best performing market, although it is looking for opportunities across the country.

Adami said Toll Brothers still trades in a defined range, adding his pick in the space would be Home Depot ( HD).

For the month-end playbook, McCullough says he is long inflation and short growth. He said he would be long the iShares Barclays TIPS Bond Fund ( TIP) and gold. With growth slowing, he said he would own the Select Sector SPDR Fund ( XLU) for the dividend yield.

In a new segment called the "Fast Money Portfolio," Scott Minerd, chief investment officer at Guggenheim Partners, laid out his long-term investment strategy.

He said the central banks are flooding the globe with liquidity, leading to a period of low rates and an asset bubble that will last through 2014. He said he would be long equities, gold, commodities, junk bonds, art and collectibles. He said he would be hesitant to go into Treasuries, which he predicted will endure an "ugly correction" in the next two to three years.

Lee brought in Gordon Johnson, an analyst with Axiom Capital, to comment on First Solar ( FSLR), which fell 5% after missing estimates. Gordon said what struck him the most in the earnings presentation was the report of a $70 million loss with respect to the cost of replacing modules. He said that could be a "game-ender" for First Solar's projects in the U.S. because it's an admission that the modules are not working.

Commenting on the drop in oil for the second consecutive day, Dennis Gartman said he is considering shorting crude after sensing a complete change in the term structures in the energy markets.

Is JPMorgan ( JPM) a buy after its investors day? Gerard Cassidy, of RBC Capital Markets, said he came away from the conference call impressed with JPMorgan's earnings power. In particular, he said he was upbeat about its commercial bank growth and its net income growth. He said JPMorgan will benefit from economic growth and enormous opportunities.

In the final trades, McCullough was short the Financial Select Sector SPDR ETF ( XLF). Adami liked Pan American Silver ( PAAS). Finerman liked Target ( TGT). Gartman said he would buy gold and sell crude.

-- Written by David Tong in San Francisco.

>To contact the writer of this article, click here: David Tong.

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