Paul Green 16854 Women's Green 8008-028 Boots B01MUE623N B01MUE623N Parent f406463




Paul Green 16854 Women's Green 8008-028 Boots B01MUE623N B01MUE623N Parent f406463 - 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:

Paul Green 16854 Women's Green 8008-028 Boots B01MUE623N B01MUE623N Parent f406463 - kattskillbay.com
ECCO Women’s Soft 9 Low-Top Sneakers Parent B06XCL7XTSRTRY Women'S Sandals Comfort Fabric Summer Casual Comfort Brown White Flat Parent B074DVNFQG , Pump/Ankle-Strap/Women’s Heels/Closed Toe/High heels shoes paint size women shoe pointed tendon end party women... Parent B073M87MB8 , Cushion Walk Ladies Active Faux Suede Slip On Toggle Sports Walking Hiking Trail Outdoor Trainers Sandals Size... B072J8RQV6 Parent , HBDLH Women's shoes/Breathable/Summer Fashion Velvet Hollow Thin Low Heel Light Grey Grey Shoes. B07FLZMXM9 ParentLBTSQ-Fashion women's shoes/Velvet Tip Shallow Mouth Thin Heel 6Cm High Heel Shoes Black Work Shoes Middle Heeled... B07G5V64J5 Parent , HeelzSoHigh Ladies Black Elegant Evening Strappy Open-Toe Sandals Formal Shoes Sizes 3-7 B07H2PYMPJ ParentNSXZ Women's Fashion Autumn Winter Genuine Leather Rome Short Boots B075HWXSLK ParentWomens Fly London Yoxi Oil Suede Fold Cuff Wedge Platform Heel Ankle Boot B073GLVZMX Parent , Pataugas Authenti/Ca F4d, Women’s Combat Boots B07CBKWT6Y ParentMagnum Unisex Classic CEN Work Boot B000ZGXVEQ Parent , Dr.Martens Womens Bianca Antique Milled Chelsea Leather Boots B01AN3M1PK ParentPump Bowknot Sports Shoes Running Shoes Women Round Toe Pure Color Satin Cloth Bow Tie Lazy Shoes Student Flat... B074W8PFCW ParentExing Womens's Shoes Velcro Small White Shoes,Breathable New Academy Shoes,Fashion Flat Ladies Deck Shoes B07FF7HBQR ParentJOJONUNU Women Flats Mid Calf Boots B07HQNWBP8 Parent , Lamoda Womens Pointed Toe Ankle Boots in Red Patent PU 3 B07CRHJTKM Parent , JPFCAK, Desert Boots, Military Boots, Men and Women, Special Forces, Ventilation, Tactical Boots, Combat Boots... B07GS3P98L Parent , KOKQSX-Wool boots high-heeled shoes 9cm female heel short boots leather waterproof platform. Forty black B07GVHWFJH ParentGTVERNH Women's shoe/Summer Cave Shoes Women Cool Boots Soft Bottom Leisure Short Boots Hollowed Out Wild B07FLFQYGQ ParentL@YC Women'S Boots In The Tube Side Zipper High Heel Belt Buckle Rivets Large Size Shoes B076DBLN2M ParentDune Women’s Cameoo Sling Back Heels B06XZ7VXQF ParentEmily Bridal Ivory Bridal Shoes Kitten Heel Pumps Square Toe Slip-on Wedding Shoes B07C3XNCNS ParentDALL Court Shoes Ly-653 Metal Buckle Women's Shoes Pointed Head High Heels Sandals Spring And Summer 9cm High... B07D9LGQ41 ParentMINITOO GYMZ635 Womens Open Toe Stiletto Heel White Satin Bridal Wedding Ankle Strap Sandal Shoes UK 8 B074S49JDY Parent , XiaoGao Thick heels with thick heels and 15 centimeters of sandals B07D5VVGNP ParentRUGAI-UE Women's sandals, summer, European and American toes, suede, high heels, women's sandals. B07DFJRS3R ParentMr/Ms PORRONET Women's Fashion Sandals B07FSXJ6LJ Parent for you to choose Beautiful Explosive good goodsAN Womens Non-Marking Cold Lining Mini-Size Urethane Sandals DIU00864 B07F1564ZQ Parent , INC International Concepts Womens Ganice2 Fabric Open Toe Casual Ankle Strap B07256QW6N Parent , AJZGF Fashion Casual Beach Shoes, Flat Slippers, Male Adult Sandals. B07DRQD9C6 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.

Paul Green 16854 Women's Green 8008-028 Boots B01MUE623N B01MUE623N Parent f406463 - kattskillbay.com

Paul Green 16854 Women's Green 8008-028 Boots B01MUE623N B01MUE623N Parent f406463 Shoes

2049903
2546289
3194179
13273148
15048708
15112988
16739854
17435941
18760603