Trade Alert - August 5, 2007

Model Portfolio Allocation Changes- This Week

Models Reduce Stock Market Allocations

For the second week in a row, the model portfolios have triggered reductions in stock market allocations to defend against the potential for continued market weakness.

This past week, the market broke down through two important sources of technical support: 1) the 200-day moving average and 2) the bullish uptrend line observed by the rally since July of 2006. We have commented for months that the market was seriously over-extended and was vulnerable to a serious correction at the very least. And the models had maintained a somewhat defensive posture since March. Unfortunately, the models responded to technical stength in the market just as it was putting in its final high by turning to a bullish posture on July 14th. But it now looks as if the time has come for that correction and the models are taking defensive measures to protect portfolio values.

Portfolio Changes in the Performance Xtender: The model is selling its 30% allocation in an OTC Stock Fund and placing the proceeds in money market funds.

Portfolio Changes in the Max Xtender: This model is selling its Leveraged OTC Stock Fund and reinvesting the proceeds in an Un-Leveraged Large Cap Fund. This transaction will concentrate the portfolio 100% in a Large Cap stock fund and eliminate the leverage factor.

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 Fund	30%	RYOCX	30%	OTPIX	30%	QQQQ
Corporate Bonds, or Money Market	Place proceeds of sale 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
Energy Stock Fund	20%	RYEIX	14%	ENPIX	20%	XLE
Gold Stock Fund	10%	RYPMX	7%	PMPIX	10%	GLD
Corporate Bonds, or Money Market	40% Money Market Funds. ProFunds investors only should have a remaining 49% 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 Lev'd OTC Fund	50%	RYVYX	50%	UOPIX	100%	QQQQ
BUY UnLev Largecap	50%	RYZAX	50%	BLPIX	50%	SPY
Corporate Bonds, or Money Market	The effect of this transaction will eliminate the use of leverage in this portfolio.

New Model Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
LargeCap Fund	100%	RYZAX	100%	BLPIX	100%	SPY
Corporate Bonds, or Money Market	.