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 2, 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
the 1st order rate of change of the SDS-SSO geodesic parameters bounced off each other at the x-axis of their plot below: typically the cross overs are coincident & indicate a market direction change. prior to the bounce, the parameters were indicating a decline in the S&P 500 index. now that they bounced back along the x-axis where they were, the parameters are still indicating bearishness in the S&P 500 index. the SDS-SSO geodesic graph continues to show the neutral weighted pair is shifting the geodesic coordinates back toward the apex of the geodesic path. see below the blue series of plotted data points represent the motion of the neutral weights from 6-16-09 which is a local top in the S&P 500 to last thursday 7-2-09. 6-16-09 is represented by the blue point at the right most point of the bottom geodesic arc. subsequent points in time are moving backup up the arc toward the apex. 7-2-09 is represented by the left most blue dot on the bottom arc. notice vertical line at ||c|| = 0.74 would intersect the top geodesic arc at it's extreme. that point represents the S&P 500 at 3-9-09. so there's a ways to go before we hit a new bottom. because market's don't move up or down in a straight line, we can't extrapolate when or at what level the next bottom will be. if we did extrapolate the timing, the new low could be during the month of september or october '09. predicting events & their timing is NOT the point of this model or analysis. stay consistent with your investment strategy and use the data in the spreadsheet to guide your hedges. | | |
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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