ICHI A Feeling Fw, Women’s A Feeling Women’s Heels Sandals B075FDYNZX Parent 88f4488

ICHI A Feeling Fw, Women’s A Feeling Women’s Heels Sandals B075FDYNZX Parent 88f4488 - 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:

ICHI A Feeling Fw, Women’s A Feeling Women’s Heels Sandals B075FDYNZX Parent 88f4488 - kattskillbay.com
MINITOO Ladies TH052 Ankle Strap Buckle Grey Suede Leather Wedding Ballroom Latin Taogo Dance Sandals 6 UK Parent B01MTT1JRTMan's/Woman's Stiefelparadies Women’s Low Top Parent B0799JQV11 Clever and practical Sales Italy CharacteristicsBOZEVON Women's Modern Closed Toe Net Yarn Ballroom Latin Wedding Party Dance Shoes Parent B07C8KRXP6 , CAFèNOIR Women’s LDA526016350 Hi-Top Trainers, Grey, 2.5 Parent B075KP839MT.T-Q Women's Dance Shoes Belly Sneakers Modern SambaSparkling Glitter Paillette Silver Parent B07FMZK41R , adidas B26300, Women's Running Shoes Parent B00QUY8D86Northside Women's Kimberley Cold Weather Boot Parent B00S5XTC4Y , Tommy Hilfiger Women’s Knitted Light Weight Slip on Low-Top Sneakers Parent B07BWZYHB3Saingace(TM) Ladies Sandals Party Dress Shoe Ruffle Peep Toe Wedge Heels Sandals Pumps Shoe (4 UK, Yellow) B07F64X6H5 Parent , Salabobo Womens Sexy Fashion Wedding Bride Bridesmaid OL Night Party Work Stiletto Peep Toe PU Sandals B01JHGBQBE ParentHutt Latin Dance Shoes Ladies Adult Oxford Cloth Soft Bottom Size 220-260 Black Dance Shoes B07G5G32HN ParentQPYC Women Pointed High Fine Heel Microfiber Denim Side Zipper Low Tube Large Size Custom Short Boots 33--48 B0783N5WFL ParentAsics Gel Solution Speed 3 B018J731W4 ParentLK BENNETT Women’s Edelle Boots B0722LKDSB ParentGentlemen/Ladies N/A - B076Z8XJFK Parent Aesthetic appearance High-quality materials Comfortable and naturalLADIES CASUAL SLIP ON COMFY LOW WEDGE WORK SHOES PUMPS BLACK PATENT SIZE 3-8 B0754MDCTJ ParentANNIE Ivory Satin Kitten Mid Heel Diamante Evening Court Shoes B00KHSGRUW Parent , Grunland Cb0266 Anatomical Rhinestones Slippers N. B01CCU06R2 Parent , Man/Woman Bandolino Women’s Oria Pump B06Y5YK266 Parent Moderate price Used in durability Easy lifeGentlemen/Ladies Bandolino Women’s Fatin Pump B07CXB4HQD Parent Rich design special function A balance between toughness and hardness , CXQ-Boots qin&X Women's Block Heel Heels Round Head Short Ankle Boots Platform Shoes Big size B078BPT2G6 ParentLadies Glittery peep toe high heel party shoes B072JKFJV8 Parent , Odomolor Women's PU Pull-On Round-Toe Low-Heels Solid Pumps-Shoes, Blue, 36 B07BBZBTDW Parent , Sam Edelman Women’s Helen Flat Sandal B01LWQK0NQ ParentMINITOO Ladies Buckle Ankle Wrap Satin Trendy Wedding Dress Sandals B07BBTK1J9 Parent , Hunter Womens org dbl Buck mid Open Toe Casual Slide Sandals B071LQHP3H ParentSkechers Women’s 15306 Platform Sandals B072T2TQ81 Parent , WEIQI-Ladies Sandals/Flat Bottom/Elastic/Non-Slip/Casual, Comfortable/Non-Slip, 2cm,34-41 B07D22L66H ParentNautica Women's Brendan Flat Sandal B01MDTKXTR 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.

ICHI A Feeling Fw, Women’s A Feeling Women’s Heels Sandals B075FDYNZX Parent 88f4488 - kattskillbay.com

ICHI A Feeling Fw, Women’s A Feeling Women’s Heels Sandals B075FDYNZX Parent 88f4488 Shoes