Public trading strategy
Middle East chaos chokes energy supply while Alcoa doubles down on metals — go l
Thesis
A flare-up in the Middle East is actively disrupting global energy supplies, pushing oil prices up and forcing QatarEnergy to withhold LNG shipments for months. This geopolitical instability creates a tailwind for hard industrial assets. Alcoa's massive $5.6 billion acquisition signals strong corporate confidence in the aluminum boom, making it a prime candidate to benefit as supply chains tighten and raw material prices rise.
Strategy approach
Build a momentum long strategy on AA using a 1-day timeframe. Enter when crude oil (CL=F or USO) makes a new 10-day high and AA breaks above its 20-day moving average. Exit if AA drops 6% from its peak or after a 30-day holding period.
Markets and timeframes
AAD1