Cinzia Soft IE9782V Ankle Boots Women Women B07D1XQLTQ Ankle Cinzia Parent a700747




Cinzia Soft IE9782V Ankle Boots Women Women B07D1XQLTQ Ankle Cinzia Parent a700747 - kattskillbay.com

While 2016 fades in the rear-view mirror, market trends from last year will continue to play an important role in 2017. Therefore, analyzing and understanding data from 2016 may help get your portfolio best positioned for the new trading year.

For example, both gold and crude oil experienced significant (and possibly unexpected) price action during 2016.

In fact, it wasn't that long ago that a slide in crude oil threatened to take down worldwide equity prices when prices slumped below $30/barrel in February 2016.

After bouncing ever-so-slightly due to reduced global production (improving supply/demand equation), crude oil truly took flight when OPEC started discussing (and ultimately agreeing upon) a coordinated supply cut. Due in large part to this OPEC activity, crude oil marked its biggest annual gain since 2009 as West Texas Intermediate (WTI) rose 45% during 2016.

With the oil cartel's production cuts scheduled to kick off at the start of 2017, the direction of oil prices in early 2017 will be largely dictated by OPEC's adherence to the deal. Worldwide oil production data for January of 2017 should be available in early February.

While gold prices followed a similar upward trend alongside crude oil for the bulk of 2016, this well-known commodity reversed course dramatically during the last couple months of last year. The early bullish trend in gold was likely due to the US Federal Reserve's decision to hold off on an interest rate hike throughout the first three-quarters of the year.

Likewise, the drop in gold prices at the end of 2016 was related to expectations (later proven correct) that the US Federal Reserve would raise rates at their December meeting. With the Fed guiding for three more increases in benchmark interest rates in 2017, gold prices movement in 2017 will hinge to a great degree on the actions of the US central bank.

Generally speaking, rising interest rates catalyze a strengthening US Dollar, which in turn weakens gold. However, gold prices can also be affected by perceived threats to the global economy (i.e. "flight to safety) and other factors.

It's possible you've already mapped out a plan for 2017 in crude oil and/or gold that fits your existing portfolio, outlook, and risk profile. However, if you are still considering new ideas for the coming year, a recent episode of Closing the Gap - Futures Edition may be a great place to start.

On the show, hosts Tom Sosnoff, Tony Battista, and futures expert Pete Mulmat outline a pairs trading idea that involves crude oil and gold futures. While the show includes a wide-ranging discussion on both commodities, the crux of the rational for the the trade involves the "Gold/Crude Ratio."

Obviously, picking the direction of either commodity over the course of 2017 is extremely difficult. That's why the trade detailed on Closing the Gap is deployed using a reference point that measures the historical relationship between the prices of the two commodities.

The Gold/Crude Ratio is calculated by dividing the current price of crude oil into the current price of gold. With gold currently trading about $1152/ounce and crude oil trading $54/barrel, that means the Gold/Crude Ratio currently stands at roughly 21 (1152/54 = 21).

As you can see in the graphic below, the current value of the Gold/Crude Ratio is somewhat depressed compared to recent history:

Cinzia Soft IE9782V Ankle Boots Women Women B07D1XQLTQ Ankle Cinzia Parent a700747 - kattskillbay.com
Cafè Noir LFB902638370 638 Nero/Bordeaux 37 MONBOOT In Velvet and Pompon In Firm Parent B075RHC7JHadidas x RAF Simons Stan Smith - White/Black Parent B07BFHPG8YWHLShoes slippers women Bow Ladies Sandals And Slippers Summer High Heels Fashion Simple And Comfortable Parent B07DH8FD65Camper Women's TWS K200048 Fashion Sneaker, Dark Gray, 36 EU/5.5 M US Parent B00SAWVK04 , KPHY Women'S Shoes/Baotou Sandals Women With A Pair Of Shoes Two Wear Retro Coarse Grandma Single Shoe 4Cm Thirty-Nine... B07G4FFK44 ParentNIKE Women’s W Dualtone Racer Se Competition Running Shoes B078TTYFZ2 ParentPUMA Women's Speed 500 Ignite 2 Poppy Red/Neutral Gray Turquoise 9 B US B076CS1DMX ParentReebok Women's Crossfit Speed TR Cross-Trainer Shoe, Pink/White/Night Beacon, B(M) US B075MNN5Z3 ParentLuoluoluo Women Sandals, Ladies Fashion high Heel Sandals Velvet Noodle Fish Mouth Strap Coarse Sandals Roman... B07CLJLF7T ParentGentlemen/Ladies Fidji Women's V510 Boot B016HF9BJC Parent Various goods First grade in its class Fine wildOswald Womens hazards Womens Leather High Heels 4 cm Rubber Sole B018W8Z29K Parent , Man/Woman ara Women's 12-43207-05 Boots B01HX9DLG0 Parent Excellent value Reliable performance Very practical , AN A&N Womens Boots Closed-Toe Zip Kitten-Heel Plaid Warm Lining Rubber Not_Water_Resistant Low-Top Nubuck Outdoor Urethane Boots DKU01958 B07928RBZS Parent , Allhqfashion Women's Round Closed Toe High-Heels Frosted High-Top Solid Boots B01NGT9Y8G ParentTAOFFEN Women Snow Boots Slip-on B077C3J5LY Parent , Funtasma Women's Flapper-168/BSQ Knee-High Boot B006XGDBQ0 Parent , Kaloosh Women's Fashion Retro Zipper Mixed Colors Round Toe Martens Boots Ankle Boots B07FY8DPWK ParentAdeeSu Womens Pumps-Shoes Closed-Toe Buckle Adjustable-Strap Heeled Cold Lining Solid Manmade Smooth Leather Dress... B07DM56CZ4 Parent , Xue Qiqi Stylish Girl pointed black high heels fine with wild single shoes red wedding shoes,35, in red B07DNB59DH Parent , Thunder Buffalo (Dig) by Thunder Buffalo (2010-02-09) B003EIX6AG ParentAerosoles Women's Good Lux Dress Pump B016J34WLY ParentClearance Sale!OverDose Women Buckle Strap Ladies Ankle High Heels Block Party Singel Shoes B079Q2881S ParentVan Dal Women's Libby Ii Leather Slingbacks Heels B003JKJVQ2 ParentClean Heels Bridal/The Races Heel Stopper (Small) with free box of confetti! B07F86GV8L ParentAisun Women's New Round Toe Buckle Court Shoes B07DZMP6P4 ParentBirkenstock Madrid Vegan, Women’s Mules B00XG10C9E ParentHigh-Heeled Shoes for Women - Rainbow 2018 New, 8.5cm Studded High Heels Women's Open-Toed Word Button Sandals B07CXMRJK7 Parent , Laura Biagiotti Women’s Angie Open Toe Heels B07DBGL4JL Parent , GTVERNH-12Cm Ultra-Like Night Club The Women'S Singles Shoes Spring Summer Waterproof Hollow Broken Down By The... B07CR9HR53 Parent , XTI Women’s 47895 Open Toe Sandals B0778WPX8X Parent ,

According to the above data, traders expecting a reversal in the Gold/Crude ratio could express their opinion by purchasing gold futures and simultaneously selling crude oil futures. Obviously, the ratio goes higher (i.e. the trade wins) when either gold prices move higher, when oil prices move lower, or both.

For a complete explanation of this trade we hope you'll take the time to review the full episode of Closing the Gap - Futures Edition focused on pairs trading these two global commodities.

While this trade structure may not fit your current portfolio and/or risk profile, it's possible that ever-changing market conditions may make it look more favorable at some point in the future.

If you have any questions about futures or any other trading topic, we hope you'll reach out at support@tastytrade.com.

In the meantime, we wish you all the best for a great new year!


Sage Anderson has an extensive background trading equity derivatives and managing volatility-based portfolios. He has traded hundreds of thousands of contracts across the spectrum of industries in the single-stock universe.

Cinzia Soft IE9782V Ankle Boots Women Women B07D1XQLTQ Ankle Cinzia Parent a700747 - kattskillbay.com

Cinzia Soft IE9782V Ankle Boots Women Women B07D1XQLTQ Ankle Cinzia Parent a700747 Shoes

427591
1093094
1365447
3405415
6222368
7529019
15325384
15927224
18357781