Middle East Conflict

by | Apr 16, 2024

Hey traders, it’s Bryce here.

Over the weekend, Iran attempted a retaliatory strike against Israel.

  • 170 drones were leveraged against Israel.
  • As well as 30 cruise missiles.
  • A 7-year-old girl injured by shrapnel was the only human casualty.
    • That’s one victim too many. But considering the size of Iran’s attack, the damage could have been far worse.

Below is a photo of the Israeli defenses intercepting Iranian ordnance on April 14.

Source: CNBC

Unfortunately, the Iranian attack signals an escalation of the Middle East conflict.

War is gruesome. I NEVER root for continued conflict. But as a trader, it’s my job to identify patterns that manifest as a result of global news catalysts.

When Hamas first struck Israel on October 7, we saw an obvious stock market reaction.

And due to recent events, we’re watching the same stocks for key profit opportunities.

Don’t miss these obvious trade setups!

Small-Account Opportunities

There are two main sectors to watch right now … 

  • Oil & gas stocks.
  • Defense stocks.

Oil & Gas

Low-priced oil & gas plays have a history of spiking during times of global tension. Especially when the tension occurs in parts of the world dominated by oil trade.

  • Eastern Europe.
  • The Middle East.

When Russia invaded Ukraine in 2022, we saw plays like Houston American Energy Corporation (AMEX: HUSA) spike 1,000%.

The stock spiked 60% when Hamas struck Israel in 2023. And it spiked another 60% last Friday as we learned of the impending Iranian offensive.

The momentum isn’t over. Look at the headline I read yesterday:

Source: CNBC

Indonesia Energy Corporation Limited (AMEX: INDO) is another volatile oil stock that’s running right now.

There’s a chart below of the 140% spike thus far:

INDO chart multi-day, 5-minute candles Source: StocksToTrade

Defense Stocks

The two main security plays we’re watching right now are … 

  • ParaZero Technologies Ltd. (NASDAQ: PRZO)
  • Hub Cyber Security Ltd. (NASDAQ: HUBC)

Both are Israeli companies.

PRZO is a drone company. HUBC is a cyber-security company. They spiked 460% and 240% respectively when Hamas struck Israel in October 2023.

Here are the most recent spikes due to increased tension between Iran and Israel. The time frame is the same as the INDO spike above …  

PRZO spiked 65% thus far:

PRZO chart multi-day, 5-minute candles Source: StocksToTrade

HUBC spiked 75% thus far:

HUBC chart multi-day, 5-minute candles Source: StocksToTrade

Again, I’m not hoping for increased conflict in the Middle East.

But as a trader, I have to approach these market opportunities analytically. Right now, everything points toward increased bullish momentum within these two sectors.

Keep an eye on low-priced stocks in the oil and defense niches. Specifically, the plays that I shared in today’s blog post.

Start compiling a watchlist. That’s how we pick up on trends in the market. And it’s how we plan ahead for larger profit opportunities.

Visit the chat if you have any questions.

Otherwise, good luck today!


Bryce Tuohey

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