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.

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Monday, April 27, 2009

SDS-SSO Model Update April 27, 2009

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Today's Commentary

today's trading in the S&P 500 was rather lackluster. perhaps the pig flu had something to do with the performance. the model still indicates a bias to SSO so follow closely over the next few days if the model changes polarity.

in typical fashion, i'm always looking for improvements in the model. over the weekend i spent some time using different source data to calculate the P's, the I's and the D's in the control loop. i found some interesting things and will be watching how this variation compares with the current PID algo.

also i will be creating some new portfolios in one of my trading accounts to follow a neutral scenario and an aggressive scenario to a "T" and will publish the results on a weekly basis as a weekly wrap-up update. up to now, my model trading has been mixed in with other trades of other assets and has been difficult to isolate the pairs trade performance by itself w/o a whole lot work.

besides the pig flu, nothing else i see has fundamentally changed the market sentiment. i think government GDP numbers come out this week so they could be game changes. if so watch for an alert.
best regards,
mike james

Managing Member
Equity Informatics, LLC
phone:302-220-3864

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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.

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