TGIF for Oil Traders as They Wrap Up a Wild Week of Swings

Market volatility made a comeback this week and a big contributor is the movement we have seen in the energy complex as oil continues to test key levels on the downside. Jeff Grossman of BRG Brokerage tells TheStreet’s Jill Malandrino the swings in oil is fairly unprecedented and caught many traders off guard this week, but for those that were on the right of the trade, it was very profitable. Grossman thinks we will see sideways action in the next week or two, and perhaps some consolidation, as markets tend to do after a wild move down. Fair value is in the range of $82-$84.50. The issue continues to be oversupply and Grossman says the oil market has been overpriced for quite some time, too. The mid $80 level is where oil should be trading now until there is more clarity around the supply and demand issue over the next three to six weeks.