Profunds index and sector trading

[Tom K]

My weighting is somewhat based on what Ned Davis Research does for their stock models. NDR argues that stock models should be a minimum of 50% tape indicators. I assume the other 50% are sentiment, monetary, seasonal, etc. The reasoning is that the tape can't diverge from itself, so even if all your other indicators go haywire, the model will still hone in on the basic trend.