Jump to content



Photo

MARTIN ZWEIG COMPOSITE SUPER MODEL

investStrat model

  • Please log in to reply
4 replies to this topic

#1 pali

pali

    Member

  • Traders-Talk User
  • 36 posts

Posted 21 June 2022 - 12:14 AM

Has anyone looked online at Investstrat interpretation of Zweig Fed model, it is stated that the results of the discount rate and the fed funds rate are averaged, this is added to the reserve requirements to give the fed indicator?

On page 54  of Zweig`s book Calculating the Fed indicator it is stated to calculate Fed Indicator just add together the reserve requirement and discount rate scores to get the Fed Indicator scores .which would result extremely bearish -4 score which would give a sell signal to the super model.

Comments any one ?  



#2 Rogerdodger

Rogerdodger

    Member

  • TT Member*
  • 26,306 posts

Posted 22 June 2022 - 11:07 AM

I vote with Marty.

I always believed that Marty was one of the few PhD economists who actually knew something of value.

 

An increase in the Discount Rate, Federal Funds Rate or Reserve Requirements is bearish.

Sell Signals

  1. A hike in either one receives minus one point for that component of the Fed Indicator. It would also wipe out any positive points that might have been there at the time. The negative point remains for six months after which it becomes ‘stale’ and is discarded.

 

 

 

This chart  http://investstrat.c...dindicator.html shows June 2022 at a Mod Bearish at -2

 

 

Economist.jpg


Edited by Rogerdodger, 22 June 2022 - 11:17 AM.


#3 Rogerdodger

Rogerdodger

    Member

  • TT Member*
  • 26,306 posts

Posted 08 September 2022 - 02:24 PM

http://investstrat.c...dindicator.html

August now at "-3 Ex Bearish"



#4 Rogerdodger

Rogerdodger

    Member

  • TT Member*
  • 26,306 posts

Posted 13 November 2022 - 06:45 PM

November -1 1 -4 Ex Bearish

#5 Rogerdodger

Rogerdodger

    Member

  • TT Member*
  • 26,306 posts

Posted 28 December 2022 - 05:49 PM

December:  -1 1 -4 Ex Bearish

 

Even though the rates continue to be raised, this has not changed in a few months.

The decreases in the past have balanced out Marty's number.

Soon those will all be gone from this number if the FED continues to raise rates.

 

See: http://investstrat.c...dindicator.html

Marty-s-FED-Signal.jpg


Edited by Rogerdodger, 28 December 2022 - 05:56 PM.