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 Alert - July 30, 2009
| Dear Blogger,
money flow going into the S&P 500 has picked up considerably over the last week or so. even when the index had leveled off a few days here, money flow still increased.
what i believe we are seeing today is pent up demand to buy equities busting through their restraints. a lot of money not previously in market is now pouring in and pushing the index much higher.
expect this rage of money flow into the S&P 500 for several weeks with a few breathers like we had this week. i don't believe the economy is this much better, so anticipate there will be a reversal later in the year. for now, enjoy the ride.
pairs traders with conservative dispositions can still be rewarded. as i have been indicating in my updates, a 50:50 trade put on even today will still increase in value as long as SSO RSI is greater than SDS which it is at this moment. if not i will do my best to send out a timeley alert.
let the pair self adjust and drift upward. when your comfortable add a little more to SSO as frequently as freasible for trade cost considerations. you too will enjoy the ride up. keep a close eye on trade update commentarys and the data published in the spreadsheet.
cheers!
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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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