Iran peace deal hopes send Korean stocks surging — ride the chip rally with EWY
Thesis
The sudden de-escalation in the Middle East removes a major overhang for global tech supply chains. South Korea's massive semiconductor sector, which is highly sensitive to global trade disruptions, just saw an enormous single-day pop. When a whole market rallies this sharply on structural news, institutional money often continues to flow in for days as portfolios re-adjust. Buying a broad South Korea fund lets you capture this relief rally safely.
Strategy approach
Build a rule-based long strategy on EWY (iShares MSCI South Korea ETF) using the daily timeframe. Entry conditions: price gaps up > 1.5% on the open and the day's volume exceeds the 20-day average volume. Exit conditions: a 5% trailing stop, or if the price closes below the 10-day exponential moving average, with a maximum holding period of 15 trading days.