Recommended Portfolio Allocation Changes- This Week
Strong Recovery Reverses Previous Break-Down
Two weeks ago we sent a Trade Alert that was triggered by the market's break-down through 3 important support levels. We said:
- "Bottom line, while the break-down increases the odds that the bull market may be finished, the market still has a fighting chance to recover from here and rally one more time."
The market did recover and by last Friday had managed to close above the all-important 1220 level. Last week's sharp rally in prices was accompanied by strong volume and a surge in the technology sector. These are strong signs that the market has at least one more bull market upleg left.

Both model portfolios have responded to the new strength, stepping up exposure to the stock market.
In the Performance Xtender -- This model portfolio is moving to a 100% invested position by taking a 40% allocation out of money market funds and purchasing an Over-the-Counter (OTC) Stock Fund. OTC funds track the Over-the-Counter market as measured by the Nasdaq. Technology stocks and the Nasdaq index are now out-performing other sectors.
In the Max Xtender -- This model has moved back to a leveraged 1.5 to 1 posture by taking the 50% allocation out of money market funds and purchasing an unleveraged Over-the-Counter (OTC) Stock Fund. OTC funds track the Over-the-Counter market as measured by the Nasdaq. Technology stocks and the Nasdaq index are now out-performing other sectors.
Recommended Portfolio Allocations
Model Portfolio: Performance Xtender
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 alternaively, investors using exchange traded funds (ETFs).
'Performance Xtender'
| Recommended Changes for this week | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| BUY OTC Stock Fund | 40% | RYOCX | 40% | OTPIX | 40% | QQQQ |
| Corporate Bonds Cash |
. | |||||
| New Recommended Portfolio Allocations | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| International Stocks | 30% | RYEUX | 40% | UEPIX | 40% | IEV |
| Gold Stocks Fund | 20% | RYPMX | 15% | PMPIX | 20% | GLD |
| OTC Stock Fund | 40% | RYOCX | 40% | OTPIX | 40% | QQQQ |
| Corporate Bonds Cash |
Money Market Fund: 10% if using Rydex funds; 5% if using ProFunds; or zero if using Exchange Traded Funds. | |||||
'Max Xtender'
| Recommended Changes for this week | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| BUY Unlev'd OTC | 50% | RYOCX | 50% | OTPIX | 50% | QQQQ |
| Corporate Bonds Cash |
. | |||||
| New Recommended Portfolio Allocations | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| Lev'd MidCap Fund | 50% | RYTNX | 50% | UMPIX | 100% | MDY |
| Unlev'd OTC Fund | 50% | RYOCX | 50% | OTPIX | 50% | QQQQ |
| Corporate Bonds Cash |
ETF Investors: Note that your MDY position should be leveraged with margin 2 to 1 . The QQQQ position is unleveraged for a total 150% invested position. | |||||
