If you’re an energy bull, you shouldn’t miss our conversation with top commodity trader Mark Fisher.
Fisher who is the CEO of MBF Clearing and one of the biggest traders of oil and energy in the nation tells us he thinks the path of least resistance is lower.
“If you look at the commitment of traders report, people got too long too fast,” he says.
“I think the sell in May phenomenon that people often talk about – it may be particularly true for energy. I’d shut the doors for a while in energy – for the summer,” he adds.
Although there are plenty of negative catalysts – Fisher thinks the recent price action says it all. “Oil sold off $8 in the last week and a half. The market is telling you something.”
Trader Joe Terranova agrees. “I think the price of oil is very vulnerable here,” he says.
However, after the summer, both traders think the dynamic changes. “In October or November I think we could push to new highs,” says Fisher. But not in the near-term; not now.