I found out that a tree with a wound is susceptible to fungus and bateria. The wound could be from a lawn mower, weed wacker, or an environmental condition like frost or fire. The air borne fungus gets into the tree through the damaged bark(wound). A small, bumpy fruiting body that's called a pycnidia forms in the wound and oozes amber/reddish jelly textured sap. This is what Reed discovered. Since our weather had been warm, Reed was able to pull some off the tree. Now that it's colder it has stiffened and looks like small dripping icicles. A woodpecker has been making a hole in the wound too. This is because insects are attracted to the sap and woodpeckers are looking for insects.
Perhaps the tree can be pruned in spring which is the only cure for this disease. So there we have it. Thanks so much for noticing this and pointing it out to me, Reed!