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 - Get Report), 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 - Get Report), and Bonanza Creek Energy (BCEI - Get Report).  

Nathan argued that the iShares Russell 2000 ETF (IWM - Get Report) 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. 

Nathan pointed out that it's odd for Qualcomm (QCOM - Get Report) to be underperforming its peers, considering its fundamentals remain so strong. He did not say whether he is a buyer of the stock. 

Reynolds American (RAI) confirmed that it's in talks to buyout Lorillard (LO). Seymour said he is staying long the stock.

Kelly reasoned that shares of Amazon (AMZN - Get Report) are poised to go higher. 

Seymour added that shares of Amazon are playing "catch up" to the broader market, since it has largely avoided the recent rally. 

Many of the financial stocks - such as Bank of America (BAC - Get Report), Morgan Stanley (MS - Get Report), and Goldman Sachs (GS - Get Report), among others - report earnings next week. Seymour is long Citigroup (C - Get Report), arguing that its price-to-tangible-book value of 0.7 represents "extreme value." He added that the selloff is overdone. 

Kelly said he would consider buying Citigroup, since so much negativity is priced into the stock at current levels.

Nathan argued that the first quarter results would be "as good as it gets" for the banks, meaning he is not optimistic on the financial sector for the rest of the year.

Seymour noted that Yahoo!'s (YHOO) earnings results will be released on Tuesday, but investors only care about its Alibaba stake. 

Nathan argued that investors do not trust what Yahoo!'s management will use its Alibaba IPO proceeds for, causing the stock to trade poorly. 

Gap (GPS - Get Report) fell 1% and was the first stock on the show's "Pops & Drops" segment. Lebenthal said he would avoid the stock, since it has no upcoming catalysts. 

Chevron (CVX - Get Report) dropped 1%. Nathan said the stock seems likely to find support soon. 

Mondelez International (MDLZ - Get Report) climbed 1%. Seymour said the valuation is not attractive and he would be cautious on the stock. 

Kelly said he would avoid Finish Line (FINL), which fell 4% on Friday.

For their final trades, Lebenthal is a seller of WTI crude oil and Nathan is a buyer of Cisco Systems (CSCO - Get Report). Kelly said he sold his long position in BlackBerry (BBRY) and replaced it with long call options to reduce risk. Seymour is buying the ProShares UltraShort 20+ Year Treasury ETF (TBT - Get Report). 

-- Written by Bret Kenwell in Petoskey, Mich.

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.