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.
2009-04-08 EQILLC Subscriber Alert
Dear Subscriber, ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ reference URL: http://finance.yahoo.com/news/SEC-recommends-short-selling-rb-14880394.html/print ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ the SEC has recommended re-instating the uptick rule to limit short selling of all stocks. this should have a negligible impact on the ProShares ETFs used in our model. In the past ProShares has reminded buyers that their short strategy involves trading swaps contracts and other financial instruments to provide leverage and inverse properties of their ETFs. see below for copy of an email i received from ProShares on a similar matter last summer. therefore, this action by the government referenced above does not effect our model's thesis. stay pat on our current path and let this news get digested just like all the other recent artificial government game changes in the market. -cheers! From: ProShares InfoTo: Michael JamesSent: Wednesday, July 16, 2008 3:10:35 PMSubject: RE: SEC plans to limit naked short selling of certain financial equities Thank you for your email regarding ProShares. We are aware that the SEC has issued an emergency order regarding shorting shares in Freddie Mac, Fannie Mae and primary dealers. Because the order was just issued and more information is expected, every potential ramification of the order cannot be known at this point. It is important to note that we typically get our short exposure, not from shorting stocks, but from financial instruments, including swap agreements. When a swap counterparty has entered into a swap agreement with us, the swap counterparty decides whether or not it needs to hedge its exposure-and engaging in short selling of a stock is only one of several ways they may accomplish this. Sincerely, ProShares Shareholder Services From: Michael James
Sent: Tuesday, July 15, 2008 2:49 PM
To: ProShares Info
Subject: SEC plans to limit naked short selling of certain financial equities
dear proshare administrators,
i'm an ordinary individual investor and use proshare short and ultra short ETFs in my portfolio to hedge again volitility in long positions. will any proposed plans by the SEC alter the behavior of your short ETFs? i understand they will require borrowing shares planned to be shorted up front for certain financial equities and then they must go through the normal settlement process. so i'm hoping proshares already does this with ALL short ETFs, not just short financial equity ETFs.
please forward a statement whether or not there will be proposed policy changes that will impact investing in proshare ETFs.
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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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