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 6, 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
stock markets are truly phenomena to behold. markets are surging higher and higher on leeks from the treasury on bank stress test news which aren't supposed to be released until tomorrow afternoon. also the market took cheer on not as bad as predicted ADP payroll reports.
apparently the market sees light at the end of the tunnel now with banks leading the charge upward. the earnings reports from banks have been taken with glee that private capitol will re-capitalize the banks with little to no more government intervention.
the indictors in the current PID-5 model have indicated a re-balance monday and the polarity chart is still biased toward SSO. perhaps that was in order because we recently broke out of a trading range on monday when the S&P 500 broke out it's upper daily Bollinger band.
the indicators for the PID-7 model, under observation, has not indicated a re-balance for neutral nor a change in polarity from market bias to SSO. the only thing is the neutral pair value with PID-7 is approaching $104 which is where i've intervened in backtests to re-set the pair value back to $100. basically this takes $4 off the table as a gain.
so looks like staying long SSO is the place to be for a while.
PID-7-ultra portfolio** : original investment $100
Date_______|___SSO____|___SDS____|__EOD Pair value
28-Apr-09__|__$89.26__|__$10.06__|__$99.33
29-Apr-09__|__$93.08__|__$9.64___|__$102.72
30-Apr-09__|__$93.44__|__$9.62___|__$103.06
1-May-09___|__$94.34__|__$9.53___|__$103.88
4-May-09___|__$100.64_|__$8.88___|__$109.52
5-May-09___|__$99.77__|__$8.93___|__$108.71
6-May-09___|__$103.16_|__$8.64___|__$111.80
**neutral performance coming soon
tomorrow, watch for movement in bank stocks & the S&P 500 as an indicator how the trading day is going.
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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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