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.