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 - June 22, 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
we have reached a point where i'm comfortable to say the model is indicating a re-balance for neutral traded pairs only and a polarity change with a bias toward SDS for moderate to ultra performance (higher risk) portfolio scenarios. if your SDS-SSO pair is already biased to SDS above the neutral point, your already positioned for moderate or ultra performance. the degree to which you are bias SDS is a personal decision based on your tolerance for risk.
because the geodesic analysis is based soley on the neutral pair weights i derive, it will take precedence over the PID-7 algorithm for re-balance & polarity indications. therefore performance charts and data will reflect decisions to weight the pairs based on geodesic optimization. i will include the old PID-7 chart indicators in the spreadsheet for reference for a while. the PID-7 algorithms are approximations for what the geodesic gives us. the geodesic is much more precise and less dependent on judgement.
today the S&P 500 index rolled over like we haven't seen in a while. no telling how long or how intense the rollover will be. i'm working on some analytics based on using the geodesic to hopefully give us a better feel for answers to how long or how intense. so while the S&P 500 stays in this cooling off phase, oppurtunities lie in buying on the rallies.
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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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