what we do
Our focus is on the development of proprietary geodesic models that characterize the behavior of leveraged long/short ETFs in pairs trades using first principles of Hamilton-Lagrange-Euler mechanics. Because of tracking errors & daily compounding phenomena, equal weightings of leveraged ETFs in a pairs trade are virtually never 50-50. Daily data & graphics will show subscribers where neutral pair weightings have moved along the path of the pairs geodesic thereby providing multiple market direction & re-balance indicators.
2009-04-06 SDS-SSO Subscriber Update
Dear Blogger, thank you again for subscribing to my online equity information service. the latest S&P 500 Index Arb Model analysis is available for download. you are able to browse the directory to access previous analysis releases. if you ever misplace your login, email me stating so using the original email address you provided when subscribing through paypal. | | | Today's Commentary
1) today the markets trade down in a u-shaped curve and then almost close up for the day. a clear demonstration that a considerable amount money is ready to be put to use. but this rally, since the mar-09 lows, is again showing signs it is loosing more momentum.
Symbol Last Change
Dow 7,975.85 41.74 (0.52%)
Nasdaq 1,606.71 15.16 (0.93%)
S&P 500 835.48 7.02 (0.83%)
2) the %change(m) re-balance indicator for the SDS-SSO model has moved closer yet to crossing the x-axis. a value of zero (0) with momentum pointing upward would indicate a local top in the S&P 500. apparently this bull rally wants to take a break - barring any upcoming bullish market news announcements.
3) i would say sentiment is not necessarily bearish or bullish right now. we seem to be in a neutral trading range while the market digests the gains we've had over the last 3 - 4 weeks. these periods are difficult to gauge. earnings season is upon us which may be another factor for sluggish movement.
neutral and aggressive performance traders probably ought to consider over-weighting toward SDS since direction, though choppy, is creeping in a bearish direction.
4) by next update or sooner i will have the blended performance scenario included in the spreadsheet analysis for comparison. so there will be 3 methods of applying the model to your benefit.
also, my blog is just about designed and ready for it's first posting. these update emails will be automatically posted on the blog and categorized for easy navigation. i will announce the URL in the next subscriber update.
the blog should be a priority place for subscribers to visit on a regular basis. my hope is it will develop into a knowledge base and forum for subscribers to post comments and questions from which others can learn.
take care and happy trading!best regards,
mike james
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Disclaimer
Equity Informatics is a developer and service provider of proprietary financial equity pricing models & trading methods. The company familiarizes subscribers with the basic thesis of our models, provides subscribers with daily neutral pair weightings and methodologies on how to use the data as intended. subscribers shall not share any information obtained from equity informatics with any other party. use of these services are granted only to and intended for the benefit of the subscriber. Equity Informatics does not offer the sale of equities nor do our trading models constitute trading advise. It is incumbent on potential clients to perform due diligence and seek a professional financial adviser to help you determine whether subscribing to the company's services are suitable for your financial situation and level of risk. No guarentees of performance are expressly or implicitly offered nor does Equity Informatics guarantee the accuracy of market information used to provide model data to our client. equity informatics does not assume responsibility for lost principal, lost gains or tax consequences.
Copyright (c) 2009 Equity Informatics, LLC. All Rights Reserved.
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