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 30, 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
despite the late day small bear raid, the S&P 500 index continues to demonstrate there is an unusual amount of interest on the sidelines in buying equities. funds & fund managers who haven't gotten back into the market since the march-2009 lows are starting to feel heat for not participating. how long this will last is anyones guess. based on model parameters, the index looks like it ready to unleash a buch of pent up demand.
having said that, traders must maintain caution and it's still prudent to maintain a descent reserve of cash. for our purposes i still submit that 30% cash is safe and aggressive enough for aggressive model users. the market as a whole has to clear the Q2 GDP hurdle at 08:30 EST. if the report does not show that the rate of economic contraction has not significantly slowed or better stopped contracting altogether, the market is likely to take a dive. if the report is favorable, look for continued momentum to the upside for several weeks.
the market is still not trading on financial business fundamentals. earnings are in the tank and revenues are more scarce. however at this point it's all about the perception that the economy is poised for a recovery not too far in the future. so it appears the market is trading on hopes and dreams. it is what it is. that's why it's prudent to have a hedge on and cash ready to be deployed. patience is the key. trying to get ahead of the market could put you in a perilous predicament. the best strategy with this system is to be conservative and let the market decide who wins.
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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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