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.
SDS-SSO Model Alert #1 - April 28, 2009
Dear Blogger, so far, the market's haven't been able to escape a trading range (no-man's land) that started April 9th in the S&P 500. see below a chart for SSO from APR-9 to today. today, we're right smack in the middle of the range for SSO and i see no sign of it breaking out of the range today. from top to bottom, the amplitude for the range is about 12% for SSO and somewhere close to 6% (minus slippage & what not) for the S&P 500. the SDS-SSO arbitrage model uses 12 trading day MA's in the analysis which is virtually the same period of time as this no-man's land. one good thing about moving averages is snap judgements are curtailed and numbers are easier to work with. one not so good thing about moving averages is it's difficult to make sense of things on a daily basis when markets fluctuate at the same period or frquency as the model uses to average various pieces of data. but as long as the amplitude of prices variations stays relatively small as it is now, the model will do a decent job at averaging out performance. this is not an alarm for liquidation or other drastic measures. just an observation for awareness. | | | | |
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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