Public trading strategy
Middle East tensions cooling off — ride the tech rebound with chip stocks
Thesis
Bloomberg and Yahoo Finance report that US-Iran tensions are fading, prompting dip buyers to flood back into tech stocks. Meanwhile, Yahoo Finance highlights that Nvidia, Micron, and Broadcom are essentially controlling the market's fate. By combining the geopolitical de-escalation with the concentration of market influence in these specific chip stocks, a long position in these semiconductor leaders captures the upside of the relief rally exactly where the momentum is strongest.
Strategy approach
Build a rule-based strategy that enters long NVDA, MU, and AVGO on D1 when the broader market (SPY) gaps up >1% at the open following a confirmed geopolitical de-escalation news event. Exit if SPY closes below its 10-day moving average, with a 10% trailing stop.