Oil crash frees up consumer cash just as Apple hikes prices — buy the AAPL dip
Thesis
Oil prices are plunging as the Strait of Hormuz stabilizes and Saudi Arabia readies price cuts, which acts like a massive tax cut for manufacturers and shipping companies. Meanwhile, Apple stock just got slammed because it announced price hikes on Macs and iPads to offset rising memory chip costs. But the rapidly falling cost of oil should provide a counter-balance — cheaper energy means lower manufacturing and shipping overhead for Apple's physical supply chain, which could easily cushion the very margin pressure investors are panicking about today. The selloff looks overdone relative to the new oil dividend.
Strategy approach
Build a mean-reversion long strategy on AAPL on the D1 timeframe. Entry: trigger when AAPL drops more than 3% in a single session AND WTI crude oil (CL=F or USO) drops more than 2% on that same session. Exit: 5% profit target, 4% stop loss, or 21-day max hold.