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Dow's Best 4 Days Since 1932

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The Dow climbed higher on Wednesday as bargain hunting in the tech sector and renewed hopes of a General Motors bailout helped buoy spirits.

The government's recent move to prop up Citigroup may have helped investors overlook more economic data that continued to show a weakening economy, market participants said.

"For the last two days is it's been made very clear that the Fed and Treasury are opening up pocketbooks," said Hugh Johnson, chief investment officer of Johnson Illington Advisors in Albany, New York.

"As a result, it has become less likely that a major financial institution will run into trouble and it's becoming more likely that the auto sector will receive some assistance."

U.S. investors did not react, traders said, to news reports of multiple attacks in India's financial capital Mumbai, in which at least 80 people were killed.

Strategy Session with the Fast Money Traders

Finally the banking sector is starting to turn, says Joe Terranova. That was the roadblock preventing the market from going forward.

This rally doesn’t feel any different than any other rally we’ve had in this bear market, counters Karen Finerman. The concerted world wide effort to stimulate financial markets is impressive but we still have trouble with the auto makers.

I’m longGM , says Jeff Macke. I’m long socialism because I think Washington is going to pour money on them. And I’m short Toyota , he adds. It’s a trade but they’re not going to get money dumped on them by America’s government.

We are in a deeply oversold market, adds Terranova. Clearly the momentum is pointing higher.

I expect to see a lot of job losses coming, counters Karen Finerman. That’s not reflected in this market. And every time the Fed or Treasury has put together a plan the market bounces and then it gets worse. I’m short Capital One .

If you push enough buttons, eventually you push the right one, adds Guy Adami, I think the market moves up another 1,000 points.

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RETAILERS UP AHEAD OF ‘BLACK FRIDAY’

All eyes are on retailers ahead of the biggest shopping weekend of the year. Jefferies & Co. analyst Daniel Binder said in a note to investors that, after going through "Black Friday" circulars, he found that two of the more aggressive discounters appear to be department stores Kohl's Corp . and J.C. Penney Co. with discounts of about 50 percent off.

And more Internet retailers will offer special promotions on Cyber Monday, the day following the Thanksgiving weekend touted as the kickoff of the online holiday shopping season.

I think there’s a disconnect going on in retail, muses Karen Finerman. If you look at Macy’sdebt, it will yield you over 18%. Either the equity is too expensive or the debt is too cheap.

If you’re levered and you’re a retailer, you’re in trouble, says Jeff Macke. I’m still long Wal-Mart but I wouldn’t buy it here.

I’ve got Gap on my radar, adds Guy Adami. They’re running their business better.

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OBAMA PICKS VOLCKER TO HEAD NEW PANEL

President-elect Barack Obama Wednesday named former Federal Reserve Chairman Paul Volcker as chair of a new panel to advise him on stabilizing financial markets and averting a painful recession.

The move is another step toward tackling the problems ailing the U.S. economy and is part of an aggressive effort by Obama to demonstrate that his administration will face the global financial crisis head-on when he takes over on Jan. 20th.

Lots of people are speaking out about Obama’s cabinet. Some are positive and some are negative. But legendary investor Jim Rogers comments today on CNBC are downright hilarious.

Rogers said, "Dr. Albert Einstein has a definition of insanity. He said if you try the same thing over and over again, expecting different results you’re insane. I mean Paulson’s been wrong 100 weeks in a row, Bernanke’s been wrong 300 weeks in a row. And now they’re bringing in a guy – what’s his name? Geithner? – he’s been wrong 750 weeks in a row! What is wrong with America!?"

The Volcker pick as well as Geithner is encouraging to me, adds Guy Adami. And I think the market feels the same.

Jim Rogers has been drastically wrong over the last 17 weeks in commodities so I’m not listening to him, muses Joe Terranova.




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Trader disclosure: On Nov. 26, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (NUE), (MSFT); Macke Owns (UUP), (MSFT), (WMT), (GM); Macke Is Short (TM); Finerman's Firm Owns (DSX), (RIG), (MSFT); Finerman's Firm Is Short (IYR), (MDY), (IWM), (SPY), (GNK), (EXM), (BBT), (COF), (USO); Terranova Owns (DIS), (XOM), (GIS)

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO: Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (CLB), (DLR), (EPR), (EXR), (MAC), (SLB), (SKT), (UA), (IGE), (DBC), (DBV); Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of Shares Of Essex Property Trust Inc.; Virtus Investment Partners Owns More Than 1% Of Shares Of Corporate Office Properties Trust SBI MD

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