The United States lifted sanctions on Iranian oil. Billions flow to Tehran. Your stop-loss triggered on a biotech penny stock this morning.
This is what passes for a peace deal now. We hand Iran access to global oil markets. They promise to negotiate. Retail traders on Reddit scrambled to buy oil tanker stocks three hours after the news broke, which means they bought at the top, which means they'll panic sell by Wednesday. The professionals already priced this in last month when the first rumor leaked. But sure, chase that momentum.
Iran can now sell oil to anyone. China was already buying it under the table, but now it's legal, which changes absolutely nothing about supply and demand except on paper. Oil futures moved 2% in both directions depending on which hour you checked. Technical indicators remain completely useless for predicting what happens next. A head and shoulders pattern appeared on the hourly chart. It meant nothing. It never does.
Some guy with 47 followers just tweeted that this is bullish for tanker stocks, bearish for energy, and neutral for tech. He used three rocket emojis. His last five trade ideas lost money. He'll tweet through this one too.
The sanctions waivers unlock billions in revenue for Iran's government. That money will enter their economy. It will not enter yours. You can draw a trendline on this news if it makes you feel better. You can calculate a Fibonacci retracement of Middle East peace negotiations. You can backtest how many times sanctions relief led to profitable trades. The answer is it doesn't matter because you weren't trading those setups anyway, and if you were, you probably shorted crude right before it ripped.
Tehran gets an economic lifeline. You get a watchlist of stocks you'll never buy and a scanner alert you'll ignore until it's too late.
Photo by on Unsplash

Leave a Comment