1. WEEKLY TUES WEBINAR Leveraged ETF (LETF) Basics Oct 27, 2009 Presentation can be downloaded at http://www.xsprofits.com/http://www.xsprofits.com/ (far left menu item Tuesday Conference Calls) Wally Eater, weater@aol.comweater@aol.com

2. DISCLAIMERS Not a professional trader Not selling or soliciting anything Not suggesting trading leveraged ETFs is appropriate for you What works for me may not work for you Presentation is for information purposes only and does not represent an offering as defined by the SEC Acts of 1933-34 and subsequent amendments. Please hold Questions until end

3. WHAT IS A LEVERAGED ETF? An ETF tracks an underlying index or investment in order to emulate performance. The goal is to give investors a way to mimic price. Leveraged ETFs intend to provide 2-3 times the return of the correlating asset. So if the tracked index rises 1%, a 2x leveraged ETF wants to create a 2% ROI. Inverse leveraged ETFs intend to achieve a positive return if an index declines in value. Leveraged ETFs are designed for day trading- not for longer or long term investments. (edited for brevity). SOURCE: http://www.thestreet.com/story/10593192/leveraged-etf-margin-rules-to-change.html New Rules (effective 12/1/09 )-- Increased margin requirements from 25% to 50% for 2x and to 75% for 3x. Inverse leveraged ETFs would increse from 30% to 60% (for 2x) and not to exceed 100% (for 3x). SOURCE: http://www.thestreet.com/story/10593192/leveraged-etf-margin-rules-to-change.html

4. WHY LEVERAGED ETFs? Leveraged returns (2-3x the average return of the index they seek to mimick) DAILY investment goals- NOT monthly or annual You’re a sophisticated, aggressive investor willing to accept substantial losses, understand leveraged characteristics & have time to manage daily position

5. WHAT ARE DOWNSIDES or “GOTCHA’s” & RISKS? High costs- can exceed 1% fees Huge price swings- + 50% daily performance Volume varies dramatically + 200% Market timing High portfolio turnover / day Tracking error vs underlying index Aggressive investment techniques Leverage- 2x to 3x plus margin until 12/1/09 Holding overnight- prices reset daily

6. WHAT ARE DOWNSIDES OR “GOTCHA’s” & RISKS? cont’d Adverse market conditions Risks of shorting instruments Inverse correlation Investing in equity securities Investing in small and mid cap companies Credit risk Risks of investing in concentrated sectors, geographic concentration May be banned by SEC or broker

7. YOUR ADVICE SOUGHT & LETF TRADER GROUP Do you have a way(s) to identify TREND REVERSALS (ie, such as the downtrend that reversed to an uptrend in March, 2009)? Would you like information on a leveraged ETF trader group being formed in OC? Dec 31, OC Traders: repeat of this presentation Dec 5, OC Traders: How I Trade Leveraged ETFs Contact: Wally Eater, weater@aol.comweater@aol.com

8. A FEW RESOURCES (also search Google & Bing) List of leveraged ETFs traded on US / Canada Stock Exchanges (hot links to leveraged ETF providers): http://etf.stock-encyclopedia.com/category/leveraged-etfs.html Dissecting Leveraged ETF Returns: http://www.investopedia.com/articles/exchangetradedfunds/07/leveraged- etf.asp http://www.investopedia.com/articles/exchangetradedfunds/07/leveraged- etf.asp Leveraged ETFs: A Value Destruction Trap? http://seekingalpha.com/article/31195-leveraged-etfs-a-value-destruction- trap http://seekingalpha.com/article/31195-leveraged-etfs-a-value-destruction- trap Leveraged ETF Ticker Symbols- All the 2x and 3x Return Info You Need http://www.darwinsfinance.com/leveraged-etf-ticker-symbols/ http://www.darwinsfinance.com/leveraged-etf-ticker-symbols/

9. QUESTIONS