RYKA Shoe Parent Women's Crusade Running 30270 Shoe B00B03FH86 Parent 5bc385b

RYKA Shoe Parent Women's Crusade Running 30270 Shoe B00B03FH86 Parent 5bc385b - 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:

RYKA Shoe Parent Women's Crusade Running 30270 Shoe B00B03FH86 Parent 5bc385b - kattskillbay.com
Womens Flat Sandals Slingback Ladies Diamante Dress Strappy Toe Post Shoes Size B07C5W8X69 Parent , KAANAS Women's Salinas Fashion Sneaker Parent B01MQFF3E9 , MINITOO QJ708 Womens Slip On Silver Suede Modern Salsa Tango Ballroom Latin Dance Shoes 3.5 M UK Parent B01I6D645CADIDAS Women's high sneakers BB5031 PROMODEL W Parent B01GQAHAHS , Man/Woman Reebok Instapump Fury Overbranded Parent B01M1DBIGV Innovative design Brand Explosive good goods , WXMDDN Ladies Latin dance shoes deep color dance shoes 5cm adult children indoor soft soles dancing shoes Four... Parent B078BR98NHMINITOO QJ6229 Women's Color Block Black Satin Latin Salsa Dance Shoes 6.5 M UK Parent B015PHU85OZHZNVX Women's Shoes PU(Polyurethane) Spring Comfort Sneakers Flat Heel White/Black / Pink Parent B07GZPS12R , AVBGT Skid Foot Wading Shoes Amazon Lovers Swimwear Casual Shoes Home Shoes Comfortable Light,Blue,Thirty-Six B07HD8HPPJ ParentAsics Gel-Fortify, Women's Running Shoes, Silver (Silver 9140), 7.5 UK B01B66QD0C Parent , SFSYDDY-Sandals 8Cm High Heels Fine Summer Heel Pointed Fashion Bow Tie Women'S Shoes Single Buckles Checked Shoes. B07GKX6QR2 Parent , NIKE Women’s 859549-400 Fitness Shoes B01L25FVGE ParentBrooks Women’s Launch 4 Gymnastics Shoes B01N8Q2ZPM Parent , Blanco Store Women’s Shoes with Strap B074SJ5VZF Parent , Frestepvie Women's Boots Autumn Vintage Basic Leather Half Length Biker Boots Classic Flat Outwear Booties Shoes B076Z7W7GW ParentGentlemen/Ladies Matisse Women's Cece Boot B01D9XCG88 Parent Ideal gift for all occasions stable quality a lot of varieties , Men's/Women's Rebels Women's Rb-tatum Boot B013L376XG Parent Reliable quality Modern design Various , Victoria Women’s Bota Blucher Serraje Chukka Boots, Brown B01LWAXP2Z ParentIndigo Rd.. Women’s Pam Pump B07CVKPB5S ParentNine West Women’s Fifth9x9 Le Leather Pump B06XRWKTNV ParentHUAIHAIZ High Heels Pumps Sandals Court Shoes Cool Slippers female fashion high-heeled slippers evening shoes B07DL43VPS ParentLIANGJUN High Heels Women's Shoes Ankle Boots Spring, 5 Sizes, 3 Colors Available (Color : Gray, Size : EU38=UK5.5... B078WVL1CW ParentAicciAizzi Women Wedge Heel Pumps Shoes Bowknot B07H93G8YN ParentJUST JUICE Women's FKOUTX8 Black Leather Monk Strap Shoes B07HGH1PZ9 ParentWomen's Latin Dance Shoes Salsa/Tango / Chacha/Samba / Modern/Jazz Dance Sandals High Heels,BlackHeeled7cm-UK6... B07GB9TSJ5 Parent , Single women fall sense the reformer nightclubs Taste Fish tip women shoes large wine red fine high-heel shoes B0757M91NQ ParentPiccoli monelli Women's Fashion Sandals B07BJ6Q8H8 ParentCHICMARK Dressy Sandals with Pointed Toe and Chunky Heel for Evening and Wedding Parties B07FF6RXT1 Parent , AalarDom Women's Buckle High-Heels Pu Solid Open-Toe Sandals, TSDLH007331 B07H5M5GWD Parent , Ladies Clarks Sandals Sail Festival B00SBG37A0 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.

RYKA Shoe Parent Women's Crusade Running 30270 Shoe B00B03FH86 Parent 5bc385b - kattskillbay.com

RYKA Shoe Parent Women's Crusade Running 30270 Shoe B00B03FH86 Parent 5bc385b Shoes