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 21, 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
(for an independent analysis of today's action, please visit briefing.com/investor.)
the markets today did follow-thru with yesterdays selling right from the beginning of trading. the SDS-SSO model analysis using PID-5 optimization parameters has indicated a re-balance to neutral weights to maintain neutral performance. in addition, polarity has changed and bias has been shifted to SDS in the ultra perfromance scenario.
the models analysis using the PID-7 optimization parameters has not indicated a re-balance to neutral weights yet nor did PID-7 follow-thru by staying below it's axis of oscillation as it did yesterday. the PID-7 algorithm requires 2 consecutive trading days across it's oscillation axis to satisfy the criteria to declare re-polarization in the ultra performance scenario. so in the spreadsheet, the numbers show the re-balance based on the heretofore PID-5 optimization standard. the PID-7 charts are included for continued observation.
my interpretation of the data suggests that for the moment we are in a subjective no-man's land meaning the market still has potential to go either way, bullish or bearish. recall around APR-21 we were in a similar no-man's land trading range. if we linger here it might be an indication that buyers are still prone to buy on the dip as they have over and over since MAR-9 regardless of the news. pundits have been saying over and over that that kind of buying is unsustainable. well, the message never got to buyers. we just have to wait and see and be prepared for another buying spree if it comes. | | |
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.
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