Trade Alert - February 4, 2007

Model 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.

Portfolio Changes in the Performance Xtender: This model is now moving 100% into Mid Cap stocks which have emerged as the new leading sector in terms of relative strength.

Portfolio Changes in the Max Xtender: This model is moving 100% into a leveraged Mid Cap fund. The effect of this change will be to increase the leverage factor from 1.5 to 1 to a fully bullish 2 to 1.

New Model 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).

'Performance Xtender'

(A model portfolio that invests selectively in stock market index funds, plus certain market sectors such as Energy, Gold and Real Estate, and in an Inverse Fund ("Bear Fund"), depending on current market trends for each type of investment. The allocation mix is designed to beat the market significantly during both bull and bear markets with only limited risk of volatility.)

Model Portfolio Changes for this week	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
SELL OTC Index Fund	30%	RYOCX	30%	OTPIX	30%	QQQQ
SELL LargeCap Fund	70%	RYZAX	70%	BLPIX	70%	SPY
BUY Mid Cap Fund	100%	RYAVX	100%	MDPIX	100%	MDY
Corporate Bonds, or Money Market	.

New Model Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
Mid Cap Stock Fund	100%	RYAVX	100%	MDPIX	100%	MDY
Corporate Bonds, or Money Market	none.

'Max Xtender'

(A model portfolio that invests selectively in stock market index funds and in an Inverse Fund ("Bear Fund"), depending on current market trends for each type of investment. During strong market trends ... either bullish or bearish ... the model uses up to 2-to-1 leverage to magnify returns. The allocation mix is designed to beat the market substantially during both bull and bear markets but results in a relatively high risk of volatility.)

Model Portfolio Changes for this week	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
SELL LargeCap Fund	50%	RYZAX	50%	BLPIX	50%	SPY
SELL Lev'd OTC Fund	50%	RYVYX	50%	UOPIX	100%	QQQQ
BUY Lev'd MidCap	100%	RYTNX	100%	UMPIX	200%	MDY
Corporate Bonds, or Money Market	Rydex does not have a leveraged MidCap fund so we have substituted RYTNX, a leveraged LargeCap Fund. ETF investors should move to a fully margined MDY position for 2 to 1 leverage.

New Model Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
Lev'd MidCap Fund	100%	RYTNX	100%	UMPIX	200%	MDY
Corporate Bonds, or Money Market	ETF Investors: Note that the MDY position is margined 2 to 1.