4 replies to this topic

[pali]

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 ?  

[Rogerdodger]

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

 

 

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

[Rogerdodger]

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

August now at "-3 Ex Bearish"

[Rogerdodger]

November -1 1 -4 Ex Bearish

[Rogerdodger]

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

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