Vagabond Women’s Boots Cindy Parent Ankle Boots B079RTVQBM Women’s Parent 8d791a5

Vagabond Women’s Boots Cindy Parent Ankle Boots B079RTVQBM Women’s Parent 8d791a5 -

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:

Vagabond Women’s Boots Cindy Parent Ankle Boots B079RTVQBM Women’s Parent 8d791a5 -
Philippe Model Women's TRLDSR02 Pink Suede Sneakers Parent B079MGK8G4Skechers Flex Appeal 2.0, Women’s Trainers Parent B06XS81BP5Sandalette-DEDE Ladies, single shoes, waterproof table, women's shoes, fringes, single shoes, water drill, high... Parent B07FPPNWT6 , ALDO Women's Jacobe Sneaker, Light Pink, 7 B US Parent B07921GJKB , Cesare P. Di Paciotti ZW11R CAM.ROSA Sneakers Woman Parent B07B3ZJBY3 , Autumn and winter ladies' boots, cotton boots, flat cotton boots Parent B0784JWN2F , SHOESHAOGE Baotou Sandals With A Sharp Heel With A Simple Word Buckle With A Shallow Mouth High Heel Shoes Women'S... Parent B0753LV6QN , Men/Women Seacoast Isle Sneaker Parent B074CDMWLV economic discount price Fair price , Lenfesh Women Sandals,Fashion Casual Fish Mouth Striped Rhinestone Platform High Heels Sandals Summer Buckle Strap... B07D7GFGW6 ParentWomen'S Wedding Shoes Down Platform Silk Fine With Platform Open Toe / Multi-Color / Large Size B076ZX4WN5 Parent , RTRY Women'S Shoes Patent Leather Winter Fashion Boots Boots Round Toe Over The Knee Boots For Party &Amp; Evening... B078C4S4J9 Parent , Fenteer Adorable PU Leather Shoes with Bowknot Sandals Ankle Straps For 1/6 BJD SD DZ BG Dolls White B07H26BTCX Parent , Summer Women Sandals, Bohemia Sweet Beaded Flip-Flop Shoes Flat Wedges Shoes Sandals Lovely Footwear Flip Flop... B078XFXCFX ParentWOMENS LADIES SUMMER JELLY SANDALS ANKLE STRAP SLING BACK BUCKLE BEACH SIZE B00U7E83MG ParentMarco Tozzi Women’s 2-2-25214-31 098 Biker Boots B07C46WR4H Parent , Peony Embroidery Platfrom Wedge Women Fashion Shoes B07DMJFZKV ParentAgooLar Women's Pull-on Imitated Suede Round Closed Toe High-Heels Solid Pumps-shoes B01IGJWWBQ ParentJIA JIA A3113 Women's Bridal Shoes Pointed Toe High Heel Satin Pumps Rhinestone Wedding Shoes B07BK2XFXS Parent , Kolnoo Womens Handcrafted Straps Rhinstones Deco Fashion Summer Shoes Flats Sandals B0785LFML4 ParentLsm-Boots Women's Flat Bottom Shoes Platform Martin Boots Shoes B077C45VSM Parentsexy Spring And Summer Matte Rubber Boots Fashion Waterproof Rubber Boots Adult Slip Water Shoes In The Tube Rain... B07CD8F56N ParentAravon Women's Katherine-AR Flat Sandal B0125TIC30 Parent , Joie Women’s Cadee Slide Sandal B06Y3FW72Z ParentAIKAKA Women's Shoes Spring Summer Belt Buckle a Large Size Sandals Thick Bottom Students B07DWV3YQX Parent , LifeStride Women’s Mona Heeled Sandal B079P7FSB3 ParentPower Strip CAFENOIR HF922 Black - Nero, 39 B07FNS599T ParentWomen shoes taste new viewed silver tip the the high-heel shoes shoes B0759P3FKH Parent , Allhqfashion Women's Buckle Open-Toe Kitten-Heels PU Solid Sandals, FBULD013549 B07H4CDDQW ParentIGI&Co 1174 Sandals Women Perlato 40 B07BNQTVPC Parent , Allhqfashion Women's Open-Toe High-Heels Pu Solid Buckle Sandals, Silver, 34 B07GJB7D3W 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

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.

Vagabond Women’s Boots Cindy Parent Ankle Boots B079RTVQBM Women’s Parent 8d791a5 -

Vagabond Women’s Boots Cindy Parent Ankle Boots B079RTVQBM Women’s Parent 8d791a5 Shoes