There Will Be Blood! (Oops, I mean oil.)

The video that Adam did in my last post prompted me to take a look at the oil chart again. This is the one area that I have a hard time trading because a part of my income is directly affected by the chart's workings, whether I like it or not. Nobody has to buy call options...nobody has to buy stocks or mutual funds...so their pricing action doesn't need to affect us. But trading oil coldly would be like making a wager against the team you have rooted for for decades. BUT...

Oil is a commodity and can be used as an indicator of the economy for other commodities to trade e.g. copper, gold, steel etc. Oil, just like gold, is an inflationary indicator as well. The dot chart below is perfect, if for nothing else, in that it suggests that the downtrend in oil is over:

So for instance, what I could do here is sell longer term puts on oil and maybe pick a strike that's $10-$15 away. However, the main gist of this is to suggest that gold (which I am long a lot of), in the intermediate term, and probably short term, is going higher. By the way; did you notice the difference in volume from oil's downtrend to what oil has done in the last few weeks?