Public trading strategy
Middle East peace deal means more oil flowing — catch the shipping boom
Thesis
With the Strait of Hormuz reopen for business, suddenly there is a massive need for oil tankers to move all this extra supply around the world. The companies that own these massive ships are going to see a surge in business and shipping rates. Buying stock in these shipping companies is a smart way to play the sudden rush of oil hitting the seas without having to guess what the price of a barrel of oil will do.
Strategy approach
Build a momentum strategy that enters long on tanker stocks (TNK, STNG, FRO) on the daily timeframe when the stock price closes above its 50-day Simple Moving Average (SMA) and the MACD line crosses above the signal line. Exit if the price closes below the 50-day SMA.