SPY366.79+0.77 0.21%
DIA299.18+0.74 0.25%
IXIC12,349.37-5.74 -0.05%

Why Is Scott Nations Seller Of Crude Oil

Scott Nations said on CNBC's "Futures Outlook" everybody thinks now that we are back to normal, but that's too optimistic.

· 11/16/2020 16:02

Scott Nations said on CNBC's "Futures Outlook" everybody thinks now that we are back to normal, but that's too optimistic. He agrees we're going to break out of "lockdown" next year, he still sees problems ahead which will have a negative impact on crude oil. Because of the near-term concerns about the economy, he wants to sell the current rally in crude oil.

Nations wants to sell the January futures contract in crude oil at a price of $42.20. He would place a stop loss at $43 and a price target at $38.65. If he is right and crude oil drops to his price target, he is going to make $3,550. In case crude oil continues to trade higher and he manages to close the trade at his stop loss, he is going to lose $800.