WATCH THIS BEFORE OIL PRICES COLLAPSE...
In a Nutshell
If Iran's war ends, oil prices will collapse from overbought levels—short USO or go long inverse SCO, while buying airline dips like AAL ($10-10.50) and LUV ($42) for gains from lower fuel costs. Markets remain bullish with NASDAQ holding support; prepare positions accordingly rather than predict, and align trades with your geopolitical views. LPP offers lessons, live sessions, and watch lists; down $300-400 today on MSTZ short but eyeing profits.
These notes were generated by AI and may contain inaccuracies.
Markets recovered from yesterday's lows and made new highs on NASDAQ after Trump stated the war in Iran is very close to being complete. Oil prices rocketed during market uncertainty, bullish for oil investors, but risk was high due to potential de-escalation tweet causing retracement.
Oil pushed up sharply then corrected, making lower lows and lower highs in the past 24-36 hours. If war in Iran is over, oil prices expected to drop.
LPP team created oil watch list: commodities, companies, ETFs focused on oil. United States Oil Fund (USO) saw sharp push up yesterday then corrected. SCO is inverse ETF. If believing war over, short USO or go long SCO since oil is overbought.
Talk is cheap. Put money where your mouth is.
Airlines negatively impacted by oil: 20-30% of expenses is oil. American Airlines (AAL) dropped from $16 to $10-10.50 per share. If oil drops, airlines benefit from lower expenses—buy the dip. Invested in Southwest Airlines (LUV) at $42, long-term outlook positive despite potential further drops if oil recovers. Intention not short-term profit; cheap enough based on recent levels.
If certain war over and markets recover, oil drops, airlines recover. Go long airlines aggressively, short oil or use inverse ETF. Recent update: Iran attacked Israel this morning—not de-escalation. Intraday volatility with recoveries and retracements.
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