Trading and Timing Rydex Sector and Index Funds

Because Rydex Sector and Index Funds have no redemption fees or trading restrictions, they are an ideal choice to use with our Mutual Fund Investing Trading and Market Timing strategy.

Using Rydex Funds, we have had excellent performance results.

Our fund signals, strategies and model selections for the Rydex Funds and hundreds of other well known mutual funds are offered on a single subscription basis. Data is updated and published daily for member/subscribers before the market opens (9:30am EST).

The Mutual Fund Investing Trading and Market Timing strategy is "mutual fund specific". Investing rules are derived from 4 technical indicators applied to three overlapping time periods. The indicators and time frames are based on well known trading principles, adapted specifically for mutual funds. Here's why the strategy is unique:

• Investing rules are applied daily, specifically and individually, to each fund, not collectively as in a market timing signal
• Investors see indicator readings in combination as they reinforce one another for better entry setups, or as they conflict for avoidance.
• Investors are kept actively engaged in the market, using Rydex Funds to be long, short or in hedging positions.
• Investors have strategies to follow to profit from and protect against some of the major economic issues we face today, e.g. rising interest rates, inflation, and deflation.
• Subscribers have continuous access to strategy rules to reference for full understanding.

We communicate strategy information to our subscribers in tables like the Rydex table below. Subscribers consult the "Status" and "Action to Take" columns first. There, an investor sees the status of each individual Rydex Fund and the action, if any, we will take on it today. In a hurry?. These can be the only columns one needs to see, but the table also gives the latest readings on indicators, prices and position returns. It's eveything a Rydex Investor needs to know in one place.

Example Table of Rydex Sector and Index Funds

The Example Table below is dated May 1, 2003, showing the status of the Rydex Funds based on closing prices April 30, 2003. This was the beginning of the 2003 bull advance. The market was recovering from the lows in March. Although almost all funds still carried negative long term indicators, many of the sector funds were showing good position gains on this date. Three funds had made new 6 month highs at the previous day's close. It was however a volatile time. The market went on from here to make a strong advance for the rest of the year and the strategy participated fully.

Picture yourself owning a Rydex Fund, or any other fund we follow, and checking an updated new table like this each morning. Say you owned the Rydex Utilities Fund, symbol RYUIX, in the Table above. By checking the columns, you know its 3 indicators are positive because they are all in green ; the price when entered on the last buy signal was 16.17; its current price is 17.89; the current trailing stop is set at 16.99; the strategy is still "in"; the fund is a buyhold ;the performance of this position as of today is +10.6%; and you have been in the trade 38 days.

To get started using Rydex Funds with our strategy, here are some options:

• Open Rydex Account Now On-line
• Two Minute Manager for steps in making fund choices
• Subscribe to Mutual Fund Investing Trading and Market Timing on this website.

You can arrange to have McDonald Capital Management make strategy exchanges in a Rydex model of your selection, provided the securities regulations in your State permit this service for a fee. Under its advisory agreement with Rydex, McDonald Capital Mangement advisory accounts do not have a minimum account requirement. Contact McDonald Capital Management about enrollment, pricing and other details

For those of you just arriving at this website, this section on Rydex Sector and Index Funds is a special section of a much larger Mutual Fund Investing Trading and Market Timing website, a one-stop resource for mutual fund investors. The left side navigation bar, or the sitemap will take you to other special sections which focus on other well known mutual funds for those with brokerage accounts, direct mutual fund accounts, 401k plans and IRA accounts. Strategy data is provided to subscribers in tables like the Rydex Example above. To see the rsults of the strategy rules applied to other mutual funds, see Other Funds Performance.

We encourage you to become one of a new breed of pro-active mutual fund investors. The time for passivity is over. In these times it is critically important to take charge of your assets.

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How to Read the Rydex Sample Table

The Colors

The tables are color coded for instant recognition.
Green means an indicator is positive; the status is entry; the action to take is buy or buyhold.
Red means an indicator is negative; status is exit; action to take is sell.
Yellow means an indicator is neutral or in transition; action to take is hold

The Columns

The Date: The date shown in the table is the date of the previous trading day. Mutual funds calculate fund prices once a day at the close of the trading day. These prices are entered in our computations over night to determine trading signals for action to take on the current trading day.

Symbol: Symbols are assigned to all funds. They are used in obtaining price quotes, other data, and in trading transactions. If the symbol and price we use for a fund is different than your symbol, it may be because our software database usually lists "A" shares. Prices and symbols will differ for other share classes, e.g. "B" or "C" shares. Also, funds in retirement plans or variable annuities will have different symbols and prices, but may be identical to the funds we track and cover in our tables. Entry and exit signals will almost always occur at the same time and in the same way, and you can follow signals shown in our table for your particular share class.

Indicators: Our system uses three technical indicators that measure price changes over 3 different time periods -- long-term, intermediate-term, and short term. They are green, if positive; red if negative; and yellow, if in transition or changing direction. Investing, Trading and Market Timing Rules are derived from these three term indicators and the 3 columns of price data that follow.

Entry Price: The price you pay is the price calculated by the fund at the close of the day in which you entered your buy order. Adjustments to entry prices in the table are made for any subsequent dividends or distributions made by the mutual fund. For instance, if a fund declares a .05 distribution, the entry price in the column would be adjusted by that amount. Entry Price column will be blank if the fund is in "out" or "wait" status.

Current Price is the price calculated from the close of the last trading day. If you place a buy or sell order for the fund, you will not receive the price in the table, but the price that will be calculated by the mutual fund at the end of the day

Stop Prices are for either trailing stops or stop losses. The stop price given is the price below which an an "exit" or "sell" will be triggered for the next day. Stop Price column will be blank if the fund is in "out" or "wait" status.

Status will say either "in" or "out" or "wait" except on a day there is a "buy" or "sell" action to be taken, in which case, status column will say "entry" or "exit". When "in" is colored blue, it means the fund has gained, or had gained, more than 5% from its entry price and exits going forward will be governed by trailing stops.

Action to Take Today will say one of the following:

• Buy - Rules have triggered an entry point and the fund is a buy
• Sell - Rules have triggered an exit point and the fund is to be sold today
• Buyhold - The fund had a previous entry point, but is still a buy
• Hold - The fund had a previous entry point but is not currently a buy.

Return: This is the difference between the current price and the entry price of the fund shown as a % gain or loss. Days in are the calendar days between today's date and the entry date

Cumulative Return is not shown in the table. It is the return in the fund using the strategy continuously from December 31, 1997 or from the fund's inception date. The data is included in the Rydex Performance or Other Funds Performance

A full definition of terms, description of system indicators, and explanation of Trading Rules (such as what is the meaning of "m+", "rs-" or "t-" in an indicator cell) are available to subscribers.

For a more complete look at strategy rules, take a one month trial subscription to Mutual Fund Investing Trading and Market Timing. This one act can change your mutual funds investing future. Try it!

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