Pavement Women’s Strap Silke Ankle Women’s Strap Sandals B076BY1FN5 nhta-30297 Parent 8894581




Pavement Women’s Strap Silke Ankle Women’s Strap Sandals B076BY1FN5 nhta-30297 Parent 8894581 - 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:

Pavement Women’s Strap Silke Ankle Women’s Strap Sandals B076BY1FN5 nhta-30297 Parent 8894581 - kattskillbay.com
Angkorly Women's Fashion Shoes Sandals Mules - Platform - Fringe - Pom Pom - Rhinestone Wedge Platform 6.5 cm B01NAZ8CVL Parent , WYMNAME Womens Latin Dance Shoes,Peep-Toe High Heels Social Dancing Shoes Soft Bottom Square Dance Shoes Indoor... Parent B07CY1PB95Sperry Women's Cloud CVO Death Star Black 9.5 M US Parent B078Y94HKMXINGMU Women Casual Shoes Printed Women Canvas Shoes Woman Feminino Breathable Shoes Sneakers Parent B07G74FH4V , adidas X 16.3 Fg W, Women’s Calcio Allenamento Parent B01FX92PNW , RTRY Women'S Heels Comfort Pu Summer Casual Ruby Black White 3In-3 3/4In Parent B074SHVS71Wrangler Women’s Runway Scuba Trainers Parent B01EANNT2I , running shoes Climachill Rocket ladies blue mt 40 B07GNT4CNZ Parent , SHOESHAOGE Women'S Shoes Comfort Sneakers Wedge Heel Closed Toe White/Black / Silver B07GK5BN68 Parent , Salewa Capisco Insulated, Women's Trekking & Hiking Shoes B00JXDFYAG Parentadidas Women’s Ultraboost X Running Shoes B06X1CXQG2 ParentGeox Women’s D New Dovelyn B Ankle Boots B01GRURV1W Parent , Men/Women Docksteps DSE103163 Boots Women B019HKBDM2 Parent sell Brand unique , Ladies Fashion Zip Pointed Toe Low Heels Genuine Leather Black Block Heels Knee-high Women Boots B07G9D1VXC ParentKangol Womens Matha Mary Jane Casual Shoes B07C42D9CM ParentAimint Womens Rhinestones Imitated Suede Pumps Shoes ERR00191 B07HR8G82G ParentEden Champagne Gold Satin Wedge High Heel Bridal Court Shoes B01N4S8Q2H Parent , Office South Beach Elastic Espadrilles B07BMG2VH9 ParentMTNG Women's Court Shoes Black Size: 6 B01FZXZ934 Parent , ECCO Women’s Soft 5 Open Toe Sandals B01I6JKWBI Parent , Kendall and Kylie Women’s Kkfayth Gladiator Sandals B01N6YH2T4 Parent , ZHUDJ High-Heeled Sandals Noble Roses Open Toe Sandals B07BNGHY24 Parent , ZHUDJ Summer Sandals Sandals With Coarse Word Pearls With Female Shoe Buckle B07BR1GHT6 Parent , CLARKS Women's Parram Spice Platform, Beige Suede, 10 Medium US B072W2B5DG Parent , AgooLar Women's Solid Imitated Suede Kitten-Heels Open Toe Buckle Sandals B01HR6S48E Parent , Summer womens wedge heels/High heel shoes/Leather platform platform shoes/Waterproof woven sandals B01N9G29A5 ParentGTVERNH In The Summer The Wild Fine With The Dew Of Peace-Keeping Operations Sandals Sexy Water Drills Slotted... B07CRCMWV5 ParentAllhqfashion Women's Closed Toe Low-Heels PU Solid Buckle Sandals B07GR3NQBL ParentHeels Sandals/Ankle Strap Sandals/Open Toe Sandals/Women’s Sandals/High-Heeled Summer Sandals and Stylish Bold... B07DRMY447 ParentAgooLar Women's Solid Pu Low-Heels Closed-Toe Buckle Sandals, GMDLB014295 B07GND5LMN 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.

Pavement Women’s Strap Silke Ankle Women’s Strap Sandals B076BY1FN5 nhta-30297 Parent 8894581 - kattskillbay.com

Pavement Women’s Strap Silke Ankle Women’s Strap Sandals B076BY1FN5 nhta-30297 Parent 8894581 Shoes

451556
2194063
3627567
5204405
9398748
10209093
12187951
12991583
18742883