This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

'Fast Money' Recap: Is Gold's Rally For Real?

NEW YORK (TheStreet) -- After opening lower on Friday's trading session, the S&P 500 closed higher by 0.14%. 

On CNBC's "Fast Money" TV show, the trading panel took a look at gold prices. 

Tim Seymour, managing partner of Triogem Asset Management, said investors seem to be flocking to gold as part of a "safety trade." However, the recent run up in gold prices is just part of a "viscous" bear market rally, he warned.

Dan Nathan, co-founder and editor of, pointed out some bullish options activity in the Market Vectors Gold Miners ETF (GDX), after someone bought 20,000 December $30/$35 call spreads. The trade will work well if physical gold prices can climb to $1,400 per ounce. 

Brian Kelly, founder of Brian Kelly Capital, is long gold and said it can get to $1,400. 

Jim Lebenthal, CFO and CIO of Lebenthal & Company, called gold the "ultimate anti-central bank trade." He agreed with Seymour that the recent rise is simply part of a bear market rally, since the asset was deeply oversold in May and June. 

Eric Marshall, senior vice president at Hodges Mutual Funds, was a guest on the show. He said small caps stocks tend to overshoot the broader market on both up days and down days. And while small cap stocks are "taking a rest" so far this year, there are still "pockets of opportunities." His top picks include: KapStone Paper and Packaging (KS), Blackbaud (BLKB), and Bonanza Creek Energy (BCEI).  

Nathan argued that the iShares Russell 2000 ETF (IWM) appears to have formed a massive "double top" near $120, which is a bearish chart formation. 

Lebenthal said he really likes small cap stocks, but they can be hard to invest in due to the lack of liquidity, increasing the volatility. 

Seymour pointed out that many investors are still looking for value. But with the  Russell 2000 and Nasdaq trading at 60 times earnings and 35 times earnings, respectively, it's hard to buy when the S&P 500 trades at just 16.5 times earnings. 

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs