Iran ceasefire is over and oil is soaring — rotate into Chevron to ride the cris
Thesis
President Trump's announcement that the Iran ceasefire is over has triggered an immediate risk-off reaction, sending stock futures sliding and pushing investors away from equities. At the exact same time, oil prices are surging after the US military carried out extensive strikes against Iran and blocked their oil sales, threatening a major global supply disruption. This combination of rising military conflict in the Middle East and restricted oil supply creates a perfect storm for energy prices to keep climbing. When oil spikes on geopolitical panic while the broader market drops, rotating capital into major oil producers like Chevron offers a direct way to profit from the crisis.
Strategy approach
Build a momentum strategy that enters long XLE on D1 when WTI Crude Oil (USOIL) breaks above its 20-day high and the S&P 500 (SPY) drops more than 1% on the same session. Exit the trade if oil falls below its 10-day low or if geopolitical headlines confirm a new ceasefire, whichever comes first. Apply a 6% trailing stop.