The inputs for the model are the Prime Rate, the Federal Reserve Discount Rate and Reserve Requirements, Installment Debt, and the ValueLine Composite Index. It's not an easy model to maintain, however, Zweig has put a tremendous amount of thought into such models, and he's one of the most scientific Wall Street 'gurus' around.
A site devoted to Martin Zweig's ‘Super Model’ outlined in Zweig’s book, “Winning on Wall Street”
The inputs for the model are:
1.The Prime Interest Rate.
2.The Federal Reserve Discount Rate and Reserve Requirements.
3. Installment Debt Indicator
4. ValueLine Composite Index
Other indicators that Zweig pays attention to, as well:
MUTUAL FUNDS CASH...”excess cash”
INVESTMENT ADVISORS
BARRON'S ADDS SENTIMENT
NUMBER OF SECONDARY OFFERINGS
Seasonal Indicators:
Zweig suggests that there is data to support general market rises on the trading day BEFORE the following hollidays:
Holiday UP DOWN UNCHANGED
Presidents Day (Feb) 12 3 2
Easter 26 5 3
Memorial Day 25 4 5
July 4 28 5 0
Labor Day 31 2 0
Thanksgiving 27 4 2
Christmas 25 7 1
New Years 31 1 1
THE FIRST TRADING DAY AFTER THE HOLIDAY CAN BE GOOD.
Thanksgiving 30 2 1
Christmas 22 10 1
WEEKLY STATS
If the day preceeding the holiday is DOWN, then the day following that holiday is also very likely to be down.
Modays seems to be down more than up
Fridays seem to be up the most of any trading day.
Tuesday, Wednesday, and Thursday tend to be neutral.
MONTHLY STATS --- BEST TO WORST
December
August
January
November
July
March
October
April
June
May
February
September.