Trade Alert - February 4, 2007

Recommended Portfolio Allocation Changes- This Week

Models Turn 100% Bullish

As the stock market rose to new heights last week, we also tracked significant improvement in our technical indicators that gauge the internal health of the market. It was enough improvement for our models to finally trigger a complete release of a "volatility constraint" that has kept the portfolios in a somewhat defensive posture.

Our model porfolios are all now moving to a fully bullish posture.

Allocation Changes in the Growth Portfolio: This model is increasing stock market exposure to 100% of the portfolio and allocating 66% to a Mid Cap stock fund and the remaining 34% to Large Cap stocks. To accomplish this, investors can sell one half of the previous Large Cap stock fund position as well as all of the previous allocation in a Corporate Bond fund. Then the proceeds can be invested in a new Mid Cap stock fund position.

Allocation changes in the Conservative Portfolio: This model is moving to fully bullish position with a 2/3rds exposure to the stock market split 50/50 between Large Cap and Mid Cap stock funds. The model is reducing the previous 66% allocation in a Corporate Bond fund by one half and allocating the proceeds to a new position in a Mid Cap fund.

Recommended Portfolio Allocations

Model Portfolio Details

The tables below provide the percentage allocation details and mutual fund ticker symbols for investors following the Model Portfolios by using funds from either of the Rydex Investments or ProFunds mutual fund companies -- or alternatively, investors using exchange traded funds (ETFs).

'Conservative Portfolio'

(A model portfolio that invests selectively in stock market index funds, a bond fund or money market funds, depending on current market trends for each type of investment. The allocation mix is designed to minimize potential losses while capturing most of the upside appreciation during strong, bull market conditions.)

Recommended Changes for this week	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
BUY MidCap Stocks	33%	RYAVX	33%	MDPIX	33%	MDY
Corporate Bonds, or Money Market Funds	Reduce Corporate Bond allocation 1/2 to 33 percent.

New Recommended Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
LargeCap Stock Fund	34%	RYZAX	34%	BLPIX	34%	SPY
MidCap Stock Fund	33%	RYAVX	33%	MDPIX	33%	MDY
Corporate Bonds, or Money Market Funds	33% Fidelity Investment Grade Intermediate-Term Corporate Bond Fund (ticker symbol FBNDX). ETF investors can use LQD or similar fund.

'Growth Portfolio'

(A model portfolio that invests selectively in stock market index funds, a bond fund or money market funds, depending on current market trends for each type of investment. The allocation mix is designed to avoid significant losses during bear markets and also beat the market during bull markets.)

Recommended Changes for this week	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
REDUCE LargeCaps	33%	RYZAX	33%	BLPIX	33%	SPY
BUY MidCap Stocks	66%	RYAVX	66%	MDPIX	66%	MDY
Corporate Bonds, or Money Market Funds	Sell Corporate Bond fund.

New Recommended Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
LargeCap Stock Fund	34%	RYZAX	34%	BLPIX	34%	SPY
MidCap Stock Fund	66%	RYAVX	66%	MDPIX	66%	MDY
Corporate Bonds, or Money Market Funds	none.