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 19, 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
as the data in the spreadsheet shows, not much has changed in the model as a result of today's trading. for an independent analysis of today's market action, i direct you to briefing.com's market update page.
today's rather flat performance shouldn't have been too much of a surprise given yesterday's +3% run-up in the S&P 500 index. my interpretation of market behavior is bad news is no longer bad news, it's OK news. it's OK news because it's already baked in as the pundits say. "We already new this report was going to be bad, so it's OK."
no telling how long this disposition will prevail but i believe there's a high probability of it changing perhaps starting in July if new quarterly earnings results show little to no top-line improvement over Q1. the disposition of investors could also change if rising unemployment stats do not abate or the federal reserve says they are starting to see signs of inflation. these are just a few possibilities.
in the meantime, things are going fairly well with the performance of the model. perhaps a week or so ago i mentioned i'm considering introducing a new technical indicator to subscribers. the indicator essentially is a vector that is related to the amplitude of the squares of the neutral weights and will possess an angular directional component. the indicator analysis will also include tracking rates of changes of vector amplitude and angularity. this indicator will introduce some concepts of classical wave mechanics more directly into the analysis and uncertainty principles inherent with the quantization of waves. | | |
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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