This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Stocks in this article: GDX KS BLKB BCEI IWM QCOM RAI LO AMZN BAC MS GS C YHOO GPS CVX MDLZ FINL CSCO BBRY TBT

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 riskreversal.com, 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • 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