Public trading strategy
Germany cancels billions in warship contracts — ride the defense stock collapse
Thesis
When a massive government contract disappears overnight, investors rush for the exits because future revenue expectations instantly vanish. A 13% crash in a single day signals panic, and often the initial drop is just the start of a longer slide as larger institutional investors slowly unload their positions. Betting against this stock for the next few days rides that wave of ongoing panic.
Strategy approach
Build a momentum-continuation strategy that enters short EU:XETR on the 1D timeframe when price closes below the 50-day simple moving average after a gap-down event, with a 5% trailing stop and a maximum hold of 10 days.
Markets and timeframes
RHM1D