Trade Alert - July 14, 2007

Model Portfolio Allocation Changes- This Week

A New Bullish Trigger

Following the strong action in the stock market last week, the models are moving out of their previous defensive postures and have also released the "volatility constraint" that kept them concentrated in Large Cap stocks, the least volatile segment. Responding to the recent relative strength in the Nasdaq Composite, both models are introducing a new position in a fund holding 'over-the-counter' (OTC) stocks that are tracked by the Nasdaq. And the Performance Xtender is taking a position in International Stocks and Precious Metals stocks.

Portfolio Changes in the Performance Xtender: The model is making significant allocation changes, adding a total of three new investment positions. The previously existing 60% Large Cap stock allocation is being reduced by one-half to create a new 30% allocation in an OTC stock index fund. In addition, the previous 20% allocation in money market funds is being liquidated to fund two new allocations: (1) a 10% allocation in an International stock fund; and (2) a 10% allocation in a Gold stock fund. This model is now 100% invested in stock market funds.

Portfolio Changes in the Max Xtender: This model is selling the unleveraged Large Cap stock fund and reinvesting the proceeds in a Leveraged OTC stock fund. The net effect of this transaction will increase the leverage factor for this model portfolio to 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
REDUCE Large Caps	30%	RYZAX	30%	BLPIX	30%	SPY
BUY OTC Stock Fund	30%	RYOCX	30%	OTPIX	30%	QQQQ
BUY International	10%	RYEUX	10%	UEPIX	10%	IEV
Buy Gold Stock Fund	10%	RYPMX	7%	PMPIX	10%	GLD
Corporate Bonds, or Money Market	Liquidate money market funds to make new purchases. ProFunds investors should keep 9% in money market funds.

New Model Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
Large Cap Stock Fund	30%	RYZAX	30%	BLPIX	30%	SPY
OTC Stock Fund	30%	RYOCX	30%	OTPIX	30%	QQQQ
Energy Stock Fund	20%	RYEIX	14%	ENPIX	20%	XLE
International Stocks	10%	RYEUX	10%	UEPIX	10%	IEV
Gold Stock Fund	10%	RYPMX	7%	PMPIX	10%	GLD
Corporate Bonds, or Money Market	ProFunds investors only should have a remaining 9% allocation in money market funds .

'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 Unlev Largecap	50%	RYZAX	50%	BLPIX	50%	SPY
BUY Lev'd OTC	50%	RYVYX	50%	UOPIX	100%	QQQQ
Corporate Bonds, or Money Market	.

New Model Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
Lev'd LargeCap Fund	50%	RYTNX	50%	ULPIX	100%	SPY
Lev'd OTC Fund	50%	RYVYX	50%	UOPIX	100%	QQQQ
Corporate Bonds, or Money Market	ETF Investors: Note that both positions are margined 2 to 1.