Public trading strategy
Emerging markets hit record high as Iran tensions ease — catch the trend
Thesis
Peace progress between the U.S. and Iran removes a major overhang for global markets, especially emerging economies. Many developing nations are net oil importers, so lower crude prices act like a tax cut for their economies. When emerging markets break out to new highs during geopolitical de-escalation, the momentum often continues as institutional money rotates from expensive U.S. stocks into cheaper international equities.
Strategy approach
Create a trend-following strategy for EEM (emerging markets ETF). Enter long when price makes a 20-day high and the 10-day moving average is above the 30-day moving average. Exit when price closes below the 20-day low or on a 8% trailing stop. Max hold: 30 days.