This is a temporary trade, since we are awaiting an Israeli strike on Iran. Biden said today he was discussing with Israel ways to strike at Iranian crude. If so, the places to be during these events are as follows:
Oil tankers, since they will enjoy elevated day rates to compensate for the risk premium.
Oils, duh
Chems: Iran is an exporters of chemicals
Volatility: since we are unaware of how this might unfold, it’s best to be safer than sorrier and remain long a little volatility, in the event of NUCLEAR WAR! I am kidding on the nuke part, but not about $UVIX.
Lastly, there is an array of stocks holding up well in this tape, such as $ACN, $ORCL,$CENX (war trade), $ICE and a sundry of utilities. Did you know $CEG is reopening 3 mile nuke plant? Indeud.
+4bps for the session, eagerly awaiting the next pivot, 35% cash.
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