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 - July 1, 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
going strictly by the numbers, the model is indicating a reversal back toward a bullish position. RSI favors SSO & the geodesic parmeters 1st order rates of change have crossed each at the x-axis. just like most other technical indicators, the SDS-SSO geodesic shows where we've been and provides a sense of trend in the very short-term. This indicator does not indicate overbought or oversold conditions like MACD or other well-known stoicastic indicators. having said that, the coordinates on the geodesic are likely to change direction within 3 - 5 trading days from now.
while using a scatter plot of the geodesic paramters 1st order rates of change data, i'm finding the data is changing linearly with respect to each other. i will be studying this data to determine what the indication may be when these changes become non-linear. the behavior of these swings along the geodesic is like a non-linear pendulum. in the case of a real pendulum, a weight is attached to a wire of rod of some material that has a very high spring constant. as far as the weight is concerned, the distance from the weight & center of rotation never change, nor the mass of the weight.
in our case we have a pendulum which has a variable mass attached to a spring with a variable spring constant. the motion of a system (with respect to time) is non-linear and very erractic. the motion of the mass would be swinging and bobbing with no fixed frequency. such a system still must follow the laws of physics. the solution to the equations of motion are much more complex, however. the motion of the whole system fortunately follows along a geodesic with some degree of symmetry.
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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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