What Oil Will Do in Winter

The above are strangles for our favorite oil straddles instrument, UCO.

What oil will do in the winter? Seasonality says it should be going down, recent action indicates it should go higher. The USD will play a big part, if it recovers, oil comes down. If it continues to sink, oil goes higher - and chokes the U.S. recovery. It is a very uncertain environment.

So oil could go anywhere, making straddles a good potential play to profit, with movements either way.

By the way, INO was a new video exactly on the crossroads for oil: Watch video showing the trends and Fibonacci levels to watch.