Public trading strategy
Peace deal sends oil prices tumbling — play the consumer relief rally
Thesis
Cheaper oil means lower gas prices and shipping costs, giving consumers more spending money and boosting corporate profit margins. Historically, when geopolitical tensions ease and oil prices drop, the overall stock market rallies in relief. Buying a broad energy sector fund or index allows you to capture this broader economic tailwind as markets adjust to the new reality of cheaper energy.
Strategy approach
Build a trend-following strategy that enters long on XLE on the daily chart when the 9-day EMA crosses above the 21-day EMA. Exit if XLE drops below its 50-day simple moving average.
Markets and timeframes
XLE1D