On Friday in its 13F for the period ended Jun 30th, Buffett's Berkshire Hathaway reported acquiring a new position in Barrick Gold Corp (Symbol:GOLD) : 21M shares, worth 567$ M.
Looking at the daily chart we can see that GOLD didn't participate in the last GLD breakout to the upside:
So if the GLD trend up will resume, GOLD can catch up with a nice move upside.
After market trading on Friday, (after the 13F report) suggest a sharp move up in GOLD to 29$ (7% up).
Since GOLD is 13% of the GDX etf, we can expect the gold miner ETF to move up on Monday too.
Here are the top holdings of the GDX (source: Yahoo Finance):
And since an index etf usually has lower implied volatility than its components, we might want to consider initiating some options strategies on the GDX etf too.
A more aggressive play can be to trade frame the NUGT etf (Gold miners X2).
So without suggesting any trade frame, and while keeping in mind that there is a big probability for gap up, these instruments are interesting candidates for trade framing preparation for Monday.
Options prices from Friday are irrelevant now, so I cannot relate to any options prices. However, I believe that by using options, especially in the next consolidation, we can trade frame theses symbols with interesting R:R ratios.
New suspects are being added to my monitors...
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