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 -

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 -
Gentlemen/Ladies Mustang Women’s 1246-401-2 Loafers B06XGDGSBN Parent Easy to clean surface Sufficient supply Good quality , Converse Unisex Adults' 136823C Flat Parent B07DN328HK , Converse All Star Mid Lux Suede Nera Parent B014KOE1B0Skecher Street Women's Double up-Diamond Girl Fashion Sneaker Parent B06XXP7H3K , adidas Originals adi-Ease Skate Shoe, Collegiate Royal/Crystal White, 10 M US Parent B077X5S3D2 , Clarks - Womens Tamitha Cattura Shoe, Size: 7.5 B(M) US, Color: Dark Brown Leather Parent B072JLRM48Superga Unisex Adults' 2832 Nylu Low-Top Sneakers Parent B018SBRG5YGeorge Oy Happy Holidays Reindeer Sneakers Running Walking Shoes Slip On Casual Low-cut Flat Trainers Jogging... Parent B0784NKMZNCFP Womens Latin Tango Cha-cha Ballroom Party Custom 2.4"/3"/3.4" Heel Professional Indoor Dance Shoes Parent B016W9KCL4HBDLH-7Cm High Heel Shoes Summer Fashion Color Matching Bow Sexy Pointy Shallow Thin And Women'S Shoes. B07GK31DTC Parent , NIKE Women’s 847568-801 Trail Running Shoes B01LX317HR Parent , ASICS 1012A131 Women's GT-Xpress Running Shoe, Carbon/Soothin Sea - 9 B(M) US B077NHDS3F ParentDress Ankle Boot Women Genuine Leather Pointed Toe Stiletto High Heel Sexy Rhinestone Butterfly Wedding Pumps... B07HHKGV2Y ParentGrunland ST0344 DOKS STIV. DONNA P. B0762JSDRB Parent , SHINIK Women's Shoes Microfiber Summer Comfort Slip-Ons & Loafers Walking Shoes Flat Heel Pointed Toe For Casual... B07D4N4Q4Q Parent , SAPPHIRE BOUTIQUE GLC649 Sinead Side Zipper Faux Leather Elasticated Ankle Button Boots B07H7LNC8X ParentBalaMasa Womens Slip-Resistant Multilayer Metal Strap Square Heels Urethane Mary-Jane-Flats B072LPL3KW ParentPatrizia Dini Court Shoes Made of Suede Von B00SD3OEEE Parent , Odomolor Women's Soft Material Buckle Round Closed Toe Kitten Heels Solid Pumps-Shoes B07B6424B4 Parent , Ash Women's Cartagena Fashion Sneaker B01MAYDRW6 Parent , Kenneth Cole Reaction Women's Pepea Star Wedge Sandal B01N0954H5 ParentPleaser Women's Kiss209uv/nhpnk/m Platform Sandal B00N2L98LG ParentXimuElegant Lady Wings Rhinestone Sandals Thin Heel Open Toe High Heels 10cm B07CWLGJRH ParentCafè Noir MHD623010370 E17.010 Nero 37 Sabot Football in Crust ON Wood Wedges B07H6DQFXJ ParentMan/Woman Benavente Women’s 110207 Peep-Toe B077K1574W Parent High-quality Modern and stylish fashion Fashion dynamicStaheekum Womens Womens Shearling Lined Moc Slipper B01NAJI7PK ParentMr/Ms Haflinger Womens Grey Pattern B06X3QCFH4 Parent Promotion Preferred material a lot of varietiesZHONGST Women's Summer Slope Sandals Non-Slip Large Sandals,Green,36 B07CQX1XST ParentRuanlei@Summer Sandals/Beach Sandals for Women/Flat Sandals/Sandals Pearls/Wedge Dress SandalsClip Pin light-lounge... B07DLJ1X1N Parent , Allhqfashion Women's Pu Kitten-Heels Closed-Toe Solid Buckle Sandals, FBULD015378 B07GLHZ2QG 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.

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 Shoes