Public trading strategy
Oil crashes below $80 on US-Iran peace deal — ride the cheap-fuel wave with airl
Thesis
A US-Iran deal reopening shipping lanes is driving oil prices down to three-month lows. When fuel costs plummet, companies that rely heavily on oil—like airlines and delivery services—see their profit margins expand almost immediately. This creates a direct tailwind for airline and shipping stocks. We want to buy a basket of airline and transportation stocks to ride this wave of cheaper oil, holding them as long as oil prices stay depressed.
Strategy approach
Build a momentum strategy on JETS (U.S. Global Jets ETF) on the Daily timeframe. Enter long when the price closes above its 20-day Simple Moving Average (SMA) and the 14-day RSI is above 50 but below 70. Exit when the price closes below the 20-day SMA. Hold for a maximum of 20 trading days.