There may be a reason for gold bugs to be worried, according to Fast trader Brian Kelly.
Gold dropped almost 3 percent Wednesday as the stock market rally prompted investors to cash in gains after the precious metal’s surge to record highs in the previous session.
But what really concerns Kelly is what he sees in the chart on the left. He thinks gold is making a double top, and that’s a bearish technical sign.
In case your not familiar with this important technical pattern, according to Investopedia, a double top is a term that describes "the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop."
Looking at action in the options pit, OptionMonster’s Jon Najarian said he’s seeing traders placing similar types of bearish bets like they did with silver earlier in the week.
“There were aggressive sellers of calls, buyers of puts in the silver ETF ," he said. "Today there is a lot more of that kind of activity in the gold ETF contract as well.”
Is Yahoo Worth a Flier as a Breakup Play?
The Street was buzzing about Yahoo Wednesday after CEO Carol Bartz was fired from the company.
Bartz was relieved of her post overthe telephone Tuesday, ending a tumultuous tenure marked by stagnation and rift with Chinese partner Alibaba.
So how should you trade it?
The Fast traders were split.
Pete Najarian is a buyer of Yahoo at these levels. “At some point in time, you do get that asset value if they can actually accomplish getting this thing split up.”
Najarian was referring to rumors that Yahoo could be broken up and sold, although according to reports, the company’s co-founder has said Yahoo is not for sale.
Brian Kelly, on the other hand, is not interested.
“When a board fires a CEO by phone it reminds me of Hewlett-Packard in its worst moments of wiretapping,” he said. “It’s a really, really bad sign for a company.”
BCG Partner’s Collin Gillis told the Fast team he doesn’t see a lot of upside beyond $17.
“This is clearly going to be a range bound name,” he said.” It’s been range bound for quite some time.”
Got something to to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to .
Trader disclosure: On Sep 7, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian owns (AAPL); Najarian owns (C); Najarian owns (MS); Najarian owns (CLF) calls; Najarian owns (TCK); Najarian owns (ACI) calls; Weiss Owns (AAPL); Weiss Owns (JPM); Weiss Owns (QCOM); Weiss Owns (VZ); Weiss Owns (DE); Weiss Owns (COP); Weiss Owns (EUO); Weiss Owns (KEG); Jon Najarian is long (ACI) call spreads; Jon Najarian is long (BAC) call spreads; Jon Najarian is long (BK) call spreads; Jon Najarian is long (XOM) call spreads; Jon Najarian is long (CIGX); Karabell own (AAPL); Karabell own (BAC); Karabell own (GS); Karabell own (GOOG); Karabell own (JPM)
Rivertwice Capital is short (XLF)
Rivertwice Capital is short (GOOG) puts
Rivertwice Capital is short (GLD)
Rivertwice Capital is short (AAPL)
For Colin Gillis
** No disclosures
CNBC.com with wires.