BalaMasa Womens Charms Bows Solid Bows B07GV7Z9N4 Urethane Pumps Shoes Parent APL10735 B07GV7Z9N4 Parent 1185aac




BalaMasa Womens Charms Bows Solid Bows B07GV7Z9N4 Urethane Pumps Shoes Parent APL10735 B07GV7Z9N4 Parent 1185aac - 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:

BalaMasa Womens Charms Bows Solid Bows B07GV7Z9N4 Urethane Pumps Shoes Parent APL10735 B07GV7Z9N4 Parent 1185aac - kattskillbay.com
T.T-Q Women's Dance Shoes Velvet Sparkling Glitter Paillette Synthetic Cuban Heel Black and Sliver Parent B07FQLXFL7adidas Stella McCartney Women's Ultraboost White 6 M US Parent B07CSSS62Y , T.U.K VLK No-Ring Vulcanized Velvet Womens Trainers Rose - 40 EU Parent B01LZ8MJ9O , MINITOO Ladies TH121 Cross Strap Kitten Heel Green Satin Wedding Ballroom Latin Taogo Dance Sandals 3.5 UK Parent B01CX4X9FSBirkenstock Arran Tx, Women’s Slippers Parent B01MQOSORD , KHSKX-Short Boots Pointed Heels Short Boots Ankle Boots High Heels Winter Rivets Martin Boots Yellow Brown B077KR1CZC Parent , Wuyulunbi@ Women'S Shoes Silk Spring Summer Basic Pump Wedding Shoes Low Heel Peep Toe Buckle For Wedding Party... B078YB57VF ParentASICS Gel-Kayano 25 Women's Running Shoe, Mojave/White, 8 B(M) US B077MKSRWR Parent , Maciejka Women Ankle Boots Metallic, (Schwarz) 03623-01/00-4 B07G2SZ5XW ParentHuaishu Women's Sandals Slippers 15CM Satin Diamond Chiffon Floral Waterproof Platform High-heeled Ladies Girls... B07DFR7ZLW ParentCHIC NANA Women’s Chelsea Boots B07612N21H Parent , Knightsbridge 3 Hole Rangers Boots Black Steel Toe CAP Boots Size:UK 6 (dt. 40) B001FX3DTG ParentBalaMasa Girls Chunky Heels Back Zipper Square-Toe Patent Leather Boots B01N3Y9908 ParentXIE Winter cowhide sequins non-slip student snow boots plus cashmere waterproof boots boots warm flat-bottomed... B07HH416WM Parent , Lotus Palladia Black & Silver Sequins Peep-Toe Court Shoes 4 B01N292A46 ParentKolnoo Womens 14.5cm High Heel Platform Sexy Sandals Four Buckles Peep-toe Summer Party Prom Shoes B06X41YSML Parent , MUYII Women's Bow Tie Flat Shoes Pumps Pointed Loafers Shoes B07D2HGWWP Parent# 4181 Designer Womens Shoes Pumps High Heel Shoes – Jet Black/Gold Sizes UK 3 4 5 6 7 8 B01A5DM87E Parent , MINITOO GYAYL402 Womens Low Heel White Satin Evening Party Shoes Bridal Wedding Rhinestone Pumps UK 9 B074RJCXRF ParentAllhqfashion Women's PU Kitten-Heels Closed-Toe Pull-On Pumps-Shoes,FBUDD012077 B07HDXSV4T ParentGentlemen/Ladies Aerosoles Women’s Sidecar Oxford B073RYW3NL Parent superior Carefully selected materials Excellent functionCarlos by Carlos Santana Women’s Debbi Wedge Sandal B075DSJJ5W Parent , Women Shoes Suede Pentagram Beads Rivets Deduction Rome Dress Block Heel Sandals Pumps Size 35 To 41 B07B6QQBWQ Parent , ZLIDS Women's Summer Thick-Soled Beach Sandals Leather Buttoned Toe Flats Black White Size 35-40 B07CQ395Q5 Parent , Carlos by Carlos Santana Women’s Tanner Flat Sandal B01NAV1FTA Parent , Waldläufer Women's Fashion Sandals Blue Blue B07BSHTXD2 ParentGirls Sandals Summer Flat Retro Fashion Clip Toe Slippers New Flowers Roman Shoes B07CJ1QFD6 Parent , Women's Sandals Flat Summer Toe Slippers Thong Boho Style Beach Shoes B07FP4G1MG Parent , Menbur Wedding Fe, Women’s Open Toe Sandals B01EUNWGZ4 Parent , Sandals Feifei Summer Women's Waterproof Platform Thick Bottom Slippers Roman Shoes Non-Slip Comfortable Open... B07CLJGFT6 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.

BalaMasa Womens Charms Bows Solid Bows B07GV7Z9N4 Urethane Pumps Shoes Parent APL10735 B07GV7Z9N4 Parent 1185aac - kattskillbay.com

BalaMasa Womens Charms Bows Solid Bows B07GV7Z9N4 Urethane Pumps Shoes Parent APL10735 B07GV7Z9N4 Parent 1185aac Shoes

1574958
2751782
3489105
4619770
7265171
16130727
16231779
16314458
18360515