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Buffett Buys GOLD miner Barrick

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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It should not be assumed that the methods, techniques, or indicators presented in this example will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. We, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.


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