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 SDS-SSO Subscriber Update
Dear Subscriber, 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 major market averages started off in positive territory but see-sawed up and down to finish on the upside. their trading patters were similar but the nasdaq composite finished with the highest gain followed by the s&p 500 and the dow 30. gains were not uniform and skewed toward technology. at one point the dow 30 and s&p 500 were in negative territory intraday but rallied back. the "reflation" rally is trying it's best to prove the bears wrong but i do not see the rally sustainable much beyond current levels.
good & bad news headlined the markets. the bad news was the minutes of the last FOMC meeting in march were released with a prolonged recession outlook. definitely not what the market wanted to hear. the good news (tongue in cheek) is the SEC proposed several possible scenarios to limit short selling in the market across the board which includes re-instating the uptick rule. as announced in the intraday alert today, there doesn't appear these actions will directly effect how the ProShares ETFs used in the model are traded. it's possible it will effect how the swap contracts are made with counterparty's. not sure about how this would effect other financial instruments ProShares use to trade with.
Dow 7,837.11 +47.55 (0.61%)
S&P 500 825.16 +9.61 (1.18%)
Nasdaq 1,590.66 +29.05 (1.86%)
10y bond 2.85% -0.03 (-1.04%)
2) the %change(m) indicator is still hovering near zero at current value of ~ -1.0. stay over-weighted SDS for aggressive performance scenarios in a overall bearish stance. nothing much has changed in my general outlook.
more soon on the items i'm working on which i listed in yesterday's eod update. | | |
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.
Posts
No comments:
Post a Comment