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 - May 7, 2009
| Dear Blogger,
if anyone re-balanced yesterday, the neutral weightings had SDS weighted higher because SSO has been changing the fastest recently. i would consider staying neutral today and not making a lot of changes to the pair yet unless you want to re-balance. still no telling what buyers will do later on in the day.
the recent buying binge tells me many folks are still using yesterdays portfolio strategies, which is a bit surprising considering the buying is being carried out by seasoned institutional investors. i would not discount the possibility that the dip today could change while these buyers still think it's "buy on the dips."
just use prudence cuz bears have been badly burned lately and they may not be willing to come out in full force just yet. we'll see.
| | | | |
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