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 26, 2009
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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
off to the races again. Some trends die hard such as the rally we are near the end of now. the buying we saw today in my opinion was a desperate attempt to grap more gains. the markets did the same thing last monday and finished flat for the week. the horrible housing data released today was totally ignored in favor of reported increase in consumer confidence. that's fundamentals for ya!
the PID-5 tuning indicator stayed below it's axis of oscillation but the polarity switched ever so slightly biased toward SSO. if the upward trend continues this week, PID-5 may very well indicate another re-balance and polarity will more than likely indicate a more definative re-bias to SSO.
the PID-7 tuning indicator moved back across it's axis of oscillation while RSI is still biased to SSO. it's possible we're either seeing the last gasps of this rally or we're going to be range bound for a while unless sellers begin to make their move.
besides these indicators, other points of data in the model still indicate we are pushing against extremes in the S&P 500. neutral weights for SDS & SSO are still near 15 month extremes. additionaly, vector c is still substantially elevated relative to historical values. i'll discuss this indicator in more detail in tomorrows update or a seperate update just for this purpose.
despite all the current mixed signals in the very short-term, i believe a more substantial broad market sell-off is in the offing. the S&P 500 index may go up a little more from here but this continued buying is untenable and unsustainable and may result in an extremely sharp snap-back this summer.
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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.
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