"The oil market here is probably overpriced. If you took all geopolitical risk off the table, I think we'd basically be lower … oil should be much lower than it is," Ilczyszyn said, adding that within the past few months, oil has traded within a range of $84 to $90 a barrel. "We have plenty of supply here, so really you have to look at the chart. We're in this band and we need some kind of catalyst to break us out either side."
Between the "fiscal cliff" and sluggish economy, Ilczyszyn said he's bearish on equities.
"The lower equities go, the lower gold will go and in my opinion, the lower crude oil will go," he said, adding he's selling E-mini Crude Oil into the January contract at $88.40 with a stop at $90.40 and a price target of $85.40.
Should crude drop to the $85.40 level, though, Ilczyszyn said he would exit the trade and possibly flip his position. If oil hits the $90 level, he'd sell oil.