Profunds index and sector trading

[otraque]

i have recently been getting a freebie sample of a web-site 'Chart of The Day'.
I am admittedly getting tempted to subscribe.
The Chart you get has an e-mail to a friend capacity, but none to place a link to on a board.
But the commentary on today's chart i just got in e-mail is valuable in itself--read carefully.
<<Chart of the Day
To come up with today's chart, we took the S&P 500 earnings yield minus the 12-month inflation rate to get what is referred to as the real earnings yield. In theory, when the real earnings yield is high, stocks are undervalued and when the real earnings yield is low, stocks are considered overvalued. With the recent run-up in earnings, the real earnings yield currently stands at 2.7%, a level that is actually near undervalued territory. It is worth noting, however, that as with the current major bear market and subsequent rally, two other periods exhibited similar real earnings yield patterns. The major bear markets of 68-70 and 72-74 began soon after the real earnings yield became overvalued and then the real earnings yield improved significantly during the ensuing rally. In those two cases the stock market topped out as the real earnings yield approached undervalued territory. Stay tuned...>>