Gray Red

I found a cocoon that was gray with red spikes attached to my cypress tree can anyone tell me what it is?

It is gray with red spikes and is attached to a my cypress tree limb.

I have a feeling you have a Cedar Apple Rust Gall. It is not a cocoon. It is a fungal disease that has a symbiotic cycle between Cedar trees and Apple trees. The Rust Gall begins it's life on a cedar tree, as a small brown or grayish round berry like growth. In spring, the gall gets bigger (up to the size of a golfball, and dimpled like one) The gall then puts out these orange/reddish tendrils that are slimy looking. The spores are released from these tendrils. The spores are carried long distances on the wind and find their way to apple trees where they begin the next phase of their life cycle, creating apple rust. It damages the fruit, and the tree becomes weakened. The the cycle starts over again. I have included a website with info, and a site with pics.

Edit: 'Symbiotic' should be replaced with 'parasitic'.