Public trading strategy
Oil crashes below $80 on Iran peace deal — rotate into energy-hungry chemical st
Thesis
Falling oil prices act like a massive tax cut for heavy manufacturing companies. JPMorgan just pointed out that energy-intensive industries, specifically chemical makers, are the very first place to look during an energy price drop. Because oil is at a three-month low and expected to stay cheap as Iranian supply returns, companies that use massive amounts of oil to make their products will see their profit margins expand quickly.
Strategy approach
Build a rule-based strategy that enters long BASFY on H4 when WTI 1-day price change is < -1.5% and price is above its 50-day SMA, with a 10-day max hold and a 4% trailing stop.