Eureka Squeeze Play, symbol “ESP”

This week we are adding three new tracking funds for us to the site. 

This first is a $ 1,000,000 tracking fund with a starting NAV of 10.00.  We will provide updates on its NAV periodically.

The investment formula for this fund is based on the out of balance condition of the US stock market. The fund position is short US stock ETF’s and long stock ETF’s outside the US.  The premise is that regardless of what direction the markets go, the differential between US and foreign stocks will narrow as the FED sells off it’s Bond positions.  This may take a number of years as the taper portion has just started and the real selling is still some time away.

The initial position has no leverage (only 1:1) as it is a fundamental stake.  As the technical trend signals trigger and confirm the narrowing we will increase the leverage to 2:1.  At times if volatility of the narrowing occurs we may go to a flat position and reinstate on subsequent widening.

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