Bogner Women’s New Salzburg Women’s nhta-27540 Bogner 18 Trainers Parent B073Q23V47 634e62c




Bogner Women’s New Salzburg Women’s nhta-27540 Bogner 18 Trainers Parent B073Q23V47 634e62c - 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:

Bogner Women’s New Salzburg Women’s nhta-27540 Bogner 18 Trainers Parent B073Q23V47 634e62c - kattskillbay.com
Reef Women's Mallory Scrunch Sandal Parent B0058XDOCU , Hkm 69939100 Stencils to buffing Roller Pattern, 5 Pieces, Black, M Parent B00UAODMY2Zenzzle Graphic Leaves and Feathers Pattern Print on Women's Running Shoes Casual Lightweight Athletic Sneakers... Parent B078391ZLT , adidas Originals Unisex Adults’ Superstar Trainers Parent B013VFZF4Q , Candice Cooper Women's MCBI394007O Brown Suede Hi Top Sneakers Parent B07B9XXT92 , Cafè Noir KDE128 Baskin Sneakers in MICROPHORED Leather Parent B07FBQXS6B , KPHY Crystal And Slippers Summer Toes Rivets 4Cm Heels Middle Heels Dragging Dragging. B07DBNZGLT ParentYukun High heels Shoes Female Autumn High Heel Square Head Shallow Mouth Thick With Single Shoes Wild Shoes Professional... B07HDNLQDD ParentZCW Casual Versatile Shoes,Student Wind Leather School Shoes in the Autumn,Thick-Soled Casual Shoes of England... B07H2Y8QVT Parent , Gentleman/Lady Emu Womens Alba Boots B004H7S04A Parent Cheap special function Explosive good goods , Fly London Sien, Women's Short Boots B01CYM8YAY Parent , Milwaukee Leather Women's Waterproof Side Zipper Plain Toe Boots (Black, Size 7.5) B06XG32MSG Parent , Lilley Womens Black Fur Trim Ankle Boot B07GM3L43D ParentU.S. Polo - SADIE4156W8 Black / 39 B07HF91VZY ParentMan/Woman Spirale Women’s Classic Boot B072Q272TT Parent New varieties are launched Wholesale trade Direct business , Pleaser Women's Sky-309FH-06 Platform Sandal B00A481804 Parent , YMFIE Women's fine with striped sequins pointed shallow mouth high heels single shoes B07G49XY4P Parent , AN Womens Quilted Assorted Colors Dress Black Urethane Pumps Shoes DGU00509-4 UK B07GL2NN1S Parent , Allhqfashion Women's Round-Toe Buckle PU Solid High-Heels Pumps-Shoes B07CQT4ZT6 ParentAllhqfashion Women's Pull-On Solid High-Heels Closed-Toe Pumps-Shoes, FBUDC009633 B07H92CWJ8 Parent , Clarks Sillian Bella Womens Casual Shoes B01H0H70EY ParentWomen's Ladies Sexy Sandals Stiletto High Heel Single Shoes Platform Peep Toe Red Party Dress Nightclub, EUR 38... B07D4H3272 Parent , SixtySeven Women’s Taike Platform Sandals B0788C8YGY ParentWomens Sandals Fashion Sequin Creative Strap Summer Shoes Open Toe High Heels Slippers & Flip-Flops for Ladies B07CY1NBK5 Parent , Blowfish Women’s Brueke Wedge Sandal B071K9MVGT ParentPleaser Pink Label SEDUCE-101 Blk Pat UK 2 (EU 35) B004IDYBEG Parent , HBDLH Women's shoes/Fashion/Inside Women'S Shoes Thick Bottomed Wild Sandals Summer Baotou Leisure Muffin Shoes... B07DBPC441 ParentAdeeSu Womens Fashion Metal Buckles Platform Suede Boots SXC02079 B0785LXJRX Parent , BEARPAW Women's Moc II Moccasin Slipper, Grey Wool, 6 B(M) US B07D962DCS Parent , AgooLar Women's Elastic Open Toe Low-heels Blend Materials Solid Sandals B01I90TEIQ 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.

Bogner Women’s New Salzburg Women’s nhta-27540 Bogner 18 Trainers Parent B073Q23V47 634e62c - kattskillbay.com

Bogner Women’s New Salzburg Women’s nhta-27540 Bogner 18 Trainers Parent B073Q23V47 634e62c Shoes

1636502
2165462
2963465
3061810
10586159
11196893
13492407
15834289
15905990