Public trading strategy
War and surging oil prices mean inflation is back — buy energy ETFs to ride the
Thesis
By connecting the 5% spike in oil prices from the Iran attacks to warnings from top economists about returning inflation, we get a perfect recipe for an oil rally. Because the new Fed Chair is intentionally being unpredictable, the market won't be able to price in a simple rate cut to save the economy. Instead, rising energy costs will squeeze the economy blindly, keeping a bid under energy commodities as a hedge against both inflation and geopolitical chaos.
Strategy approach
Build a rule-based strategy that enters long USO on D1 when US crude oil benchmarks jump more than 4% in a single session and the Volatility Index (VIX) spikes above 20. Exit conditions: 15% profit target or 7% stop loss, max hold 30 trading days.