Public trading strategy
Middle East tensions spark oil volatility — play the energy pullback
Thesis
Oil prices initially spiked due to Middle East conflict but are now falling as indirect Iran-US talks show positive signs. This retreat in oil is already having a knock-on effect, causing European inflation to slow more than expected. As oil—the primary input cost for airlines—retreats from geopolitical premium highs, airline profit margins expand, making airline stocks a prime beneficiary of this disinflationary trend.
Strategy approach
Build a range-trading strategy on JETS (US Global Jets ETF) using D1 timeframe. Enter long when crude oil (WTI) makes a 10-day low and JETS is within 3% of its 20-day low. Exit when WTI bounces 4% off the low or after holding for 15 trading days.