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 Update - May 12, 2009
Dear Blogger, thank you! again for subscribing to the S&P 500 long/short ETF Model and welcome to new members who just joined and new list subscribers. today's analysis is available for download:
ignore the missing data error message that may pop-up when opening up the file. Excel for Windows looks for metadata that Excel for Mac doesn't generate.
if you ever misplace your login, send me a message using the email you originally provided when subscribing through paypal. visit the blog for an archive of all subscriber updates and alerts. the archive is search-able and comments can be posted by everybody. | | | Today's Commentary
today's trading on the major averages were flip-floppy but not that exciting to watch from my vantage point. the Nasdaq composite was down virtually the entire day while the Dow 30 and S&P 500 were mostly + or - trying to figure out which way they wanted to go. both market indexes looked like they were going to demonstrably finish in positive territory only to run into a late day sell-off. closing results were as follows:
Symbol___Last______Change
Dow______8,469.11___50.34___0.60%
Nasdaq___1,715.92__-15.32__(0.88%)
S&P 500____908.35___-0.89__(0.10%) source: Yahoo! Finance
Not much changed in model parameters compared to yesterday. the spread between neutral weightings continues to widen and slowly approaching levels a year prior in May-2008 which were slightly below extreme values experienced in Oct-2008, Nov-2008 & Mar-2009. the reversal from Mar-2009 lows has been dramatic and in my opinion to much too fast for a sane market recovery scenario.
as usual, stay cool headed and wait for EOD data to make trading decisions ahead of time. according to the thesis of the model, a years gains or losses aren't made in 1 day, which means don't fret emotional intraday market activity.
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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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