Constructing the Monetary Model by Martin Zweig

Hello!

I have read Martin Zweig´s book Winning On Wall Street and liked it very much. Now I´m trying to construct the Monetary Model, which he developed, but I got stuck.

The Monetary Model is constructed from Prime Rate Indicator, Fed Indicator and Installment Debt Indicator.

Prime Rate Indicator:
This was not much trouble to find.

Fed Indicator:
This indicator is constructed from discount rate, federal funds rate and reserve requirements.

Discount Rate and Federal Funds Rate:
According to Zweig, both the discount rate and the federal funds rate serve basically the same function so he uses changes in either rate for calculating the Fed Indicator.

One useful site that I found publishes Primary rate, Secondary rate and Federal Funds Rate. The Primary and Secondary rate are not mentioned in his book, so I wonder, which of these should I use?

Reserve Requirements:
I have no idea where to find this data. A quote from his book:
I would very much appreciate if someone could direct me to somewhere, where I can obtain this data.

Installment Debt Indicator:
I understand, for what is it used, and that it is reported once a month, but again, I don´t know where to find the numbers.

Any help is appreciated and when the Monetary Model Worksheet is completed (MS Excel format) I´ll gladly share it with you.

Happy trading and thanks!

This has taken a lot of time, but my interpretation of the Market Model is now constructed and available in the attachment.

There are some Slovenian comments in the cells, but you can simply delete them. The requested data also needs to be entered, but this is the least

Enjoy.

UPDATE:
The attachment now contains all of the existing conditions for March 2006.

Downloaded your Zweig model. Thanks.
Could you summarize where you get all the data in the model?

Thanks again

Hello! I hope you find it usefull.

Since there are too many links to copy/paste, I suggest you to try some googling. If you won´t find all of the sources, let me know, and I´ll help.

How to calculate the Consumer Installment Debt? For example, in his book, the number 3/18/74 is $145.55 Billion. But the http://www.federalreserve.gov/releas...c_hist_nr.html
it shows on January 1974, the number was $191.222 Billion. Do you know where this $145.55 Billion came from? Thank you for help.

How to calculate the Consumer Installment Debt? For example, in his book, the number 3/18/74 is $145.55 Billion. But from the http://www.federalreserve.gov/relea...cc_hist_nr.html
it shows on January 1974, the number was $191.222 Billion. Do you know where this $145.55 Billion came from? Thank you for help.

The difference is small enough, so don´t worry

But, the truth is, that I don´t know from where the difference comes from. If you start to follow G.19 reports monthly, you will notice, that every single number changes for just a little.

For example - on January 2006, I´ve recorded 2185028 for total Consumer Credit. If you look at it now, it´s at 2177280.

Maybe we should ask the FED why this differences are made.

Pirx,
Thank you for reply to my question. Thank you for help. Do you know where can I fine the data of the Value Line Composite?
Thanks.