On CNBC's "Futures Outlook," Scott Nations said crude oil traded higher on Monday because it appears that the lockdown in Europe is going to be light and it won't hit demand as much as investors feared last week. The PMI data in Europe and China were really good, added Nations.
While Monday was good for bulls, fundamentals in crude oil are still really bad, believes Nations. Lybia is coming back and there is going to be more supply from Northern Europe.
He wants to sell the December crude oil contract, but he is going to let it come back a little bit more. He is a seller at $38 and his target is $35. Nations is going to trade with a stop loss at $39.25.
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