Trade Alert - November 25, 2005

Recommended Portfolio Allocation Changes- This Week

The Hoped-For Fall Rally Materializes

We have waited all year for the market to break out of its trading range. It finally happened this past week as the market established 4-year new highs.

It seems that this latest round of buying is finally being driven by institutional demand for stocks. The institutions have played it conservatively all year, never really becoming overly bullish. But since recent years have witnessed a consistent "fall rally" pattern, institutional money managers have been hoping for a repeat this year. They are now piling into stocks with the expectation of being able to finish 2005 with a positive total return.

At this juncture, the market's challenge is to successfully "hold the breakout". We will likely see some weakness in the short term that "tests" the point of break-out which is at about 1245 on the S&P 500 Index. What we want to see is the market closing next week, and the week after that, at levels above 1245. If the market were to break down decisively below 1245, we would be looking at the possibility of another "failed breakout" which would be a very bearish development.

The market's action this past week triggered a bullish response in the Max Xtender model:

In the Max Xtender -- This model portfolio is moving to its most bullish posture, leveraged at 2 to 1. The model is keeping its previous 50/50 allocation between MidCap stocks and Over-the-Counter (OTC) stocks; but is moving from 1.5-times leverage to 2-times by switching out of the unleveraged OTC fund into the leveraged OTC fund. ETF investors should note that to achieve the same effect, they only need to margin their QQQQ investment by 2 to 1.

Recommended 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'

Recommended Changes for this week	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
No Changes	-	-	-	-	-	-
Corporate Bonds, or Cash	.

New Recommended Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
LargeCap Stock Fund	40%	RYZAX	40%	BLPIX	40%	SPY
Gold Stocks Fund	20%	RYPMX	15%	PMPIX	20%	GLD
OTC Stock Fund	40%	RYOCX	40%	OTPIX	40%	QQQQ
Corporate Bonds, or Cash	Money Market Funds: ProFunds investors only should be holding a 5% allocation in Money Market.

'Max Xtender'

Recommended Changes for this week	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
SELL Unlev'd OTC	50%	RYOCX	50%	OTPIX	50%	QQQQ
BUY Lev'd OTC	50%	RYVYX	50%	UOPIX	100%	QQQQ
Corporate Bonds, or Cash	ETF Investors: The QQQQ position should be leveraged with 2 to 1 margin.

New Recommended Portfolio Allocations	Rydex Funds		ProFunds		ETFs
	Allocation	Ticker	Allocation	Ticker	Allocation	Ticker
Lev'd MidCap Fund	50%	RYTNX	50%	UMPIX	100%	MDY
Lev'd OTC Fund	50%	RYVYX	50%	UOPIX	100%	QQQQ
Corporate Bonds, or Cash	ETF Investors: Note that your QQQQ and MDY positions should be leveraged with margin 2 to 1 .