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 15, 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
as expected with the explosive move up of the S&P 500 index, the model now indicates a mild bullish bias. the erratic behavior of the index over the last 10 trading days or so has been mirrored by the model with several flip-flop market direction change indications. this is usually a sign of indecisive interest in the market. are we going up or down? that kind of thing. though the market exploded higher today, it's still unclear to me how many legs this upswing has. but for now, the trend is certainly upward.
the yellow square dots in the geodesic charts represents parameter coordinate movement during this upward motion in the index. the direction of movement is away from the apex out to the end of the lower portion of the path. the scatter plot of the parameters 1st order time rate of change shows a coordinate move into the 4th quandrant which means the amplitude of the wave change is positive but angular velocity is negative. the full implication of this is not clear other than the run up in the index has slightly different characteristics. apparently there are forces pulling the index to equilbrium (back toward the apex) or this is a transient effect of the change in market direction change. it's more like the latter i fell but we'll see.
hopefully readers have some cash to put to work incase this optimism becomes euphoric. it's not clear if the index will pop tomorrow as high as it did today or at all. but more key earnings reports in the next few days are likely to beat wall street forecasts.
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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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