Trade Alert - September 3, 2006

Model Portfolio Allocation Changes- This Week

Market Rally Triggers Bullish Allocations

In the past several weeks, the market has managed to claw itself out of quite a hole. As of last Friday's close, the market had improved enough to trigger a bullish increase in stock market allocations in most of our model portfolios. Note that while the models are all now technically fully invested, they remain on a defensive volatility setting. The models are still reading a significant degree of deterioration in the market's underlying technical condition.

The effect of the reduced volatility setting is to enforce a bias in the models' allocations to favor Large Cap stocks which are the least volatile sector. Even if the Small Cap, Mid Cap or OTC sectors improve enough in relative strength versus Large Caps to warrant an allocation, the reduced volatility setting will minimize the size of any allocations in these more volatile sectors.

Changes in the Max Xtender: This model triggered an increase in exposure to LargeCap stocks to a maximum, fully leveraged allocation of 200%.

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
No Change	-	-	-	-	-	-
Corporate Bonds, or Money Market	-

New Model Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
LargeCap Stock Fund	80%	RYZAX	80%	BLPIX	80%	SPY
Real Estate Fund	20%	RYHRX	15%	REPIX	20%	IYR
Corporate Bonds, or Money Market	Money Market Funds: 0% (ProFunds investors only: 5%)

'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
BUY Lev'd LargeCap	50%	RYTNX	50%	ULPIX	50%	SPY
SELL UnLev'd LrgCap	50%	RYZAX	50%	BLPIX
Corporate Bonds, or Money Market	ETF Investors: Note that the SPY position should now be leveraged 2 to 1.

New Model Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
Lev'd LargeCaps	100%	RYTNX	100%	ULPIX	200%	SPY
Corporate Bonds, or Money Market	ETF Investors: Note that the SPY position should now be leveraged 2 to 1.