US-Iran peace deal opens shipping lanes and sinks oil prices — jump on emerging
Thesis
The breakthrough in the Middle East is a game-changer for global shipping costs because one of the world's most important waterways is finally open again. Falling oil prices directly benefit developing countries, which are often heavy importers of energy. When the cost of energy drops, inflation cools down, consumers have more spending money, and local businesses become more profitable. This creates a perfect environment for emerging market stocks to continue their record-breaking run as global investors look to move their money into these cheaper, fast-growing economies.
Strategy approach
Build a rule-based strategy that enters long on the MSCI Emerging Markets Index ETF (EEM) on the daily chart. Entry: go long when the 50-day SMA crosses above the 200-day SMA (Golden Cross) AND the 14-day RSI is between 50 and 70. Exit: close position if the 14-day RSI exceeds 75 (overbought), or if the price drops below the 20-day SMA. Max hold period: 60 days.