Alpha.Metals – Long Palladium, Short Gold up 79% since July 09

Orpheus has been writing about the prosperity index aka Gold – Silver ratio for nearly 5 years. The ratio line has been interpreted as a sentiment indicator for a few decades now. What’s new is the Orpheus time arbitrage strategies viz. long gold – short silver strategy, long copper – short silver, long palladium – short gold strategies or vice versa. Can such strategies be profitable?

Long palladium, short gold registered a gain of 79% since 09 July 09, long copper – short silver delivered 10% since 11 Nov and long copper, short gold closed 9% since 11 Dec. Though on an absolute basis Silver fell 9% it did not outperform against Gold since 6 Nov and now the cycle seems to have turned in favor of silver. The white metal should son outperform both gold and copper.
The latest Alpha Metals carries numeric rankings for the Metals complex from  9 Nov 2009, 15 Jan 2010 and the change in rankings. The idea is to illustrate that numeric rankings (Fig2.) are not static as they are based on performance. When relative performance changes, numeric ranking also changes. Over the last few weeks the biggest change in Rankings was in copper and lead, these were the big movers as illustrated above.  The metals complex is headed for new performers, Uranium, Tin, Zinc, Nickel are headed for changes, some towards outperformance and some towards underperformance against gold. For further queries drop us a mail.

ALPHA is a pair trading, long only – short only strategy and numeric ranking product based on TIME fractals. Time arbitrage, Time Triads, Time fractals are terms coined by Orpheus Research. The signals are carried over three different time frames viz. sub minor (2-3 days), minor (10-30 days) and intermediate (above 30 days). This is a daily signal product. The signals will be illustrated through tracker and running portfolios. Alpha can be used by fund managers for relative allocations, traders for leverage bets and high net worth clients for selective trades. This is a part of the time triads analytics developed by Orpheus Research.

METALS: STEEL, ZINC, NICKEL, TIN, ALUMINIUM, URANIUM, GOLD, SILVER, LEAD

STOP LOSS AND EXITS are activated at 2%

Please feel free to mail us for any clarifications. *This is a strategy product. Long Short strategies are not riskless strategies. Please mail us for a detailed working or consult a local financial risk manager to execute these pairs. For more details please subscribe to the ORPHEUS TIME ANALYTICS research products.

To login to the member’s area or access Orpheus estore click here.

ORPHEUS RESEARCH AT REUTERS – UNITED KINGDOM

ORPHEUS RESEARCH AT REUTERS – USA