Constructing the Monetary Model by Martin Zweig (US Markets)
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: Quote:
"To calculate the Fed Indicator, you must grade the discount rate and reserve requirements separately. Then their scores are combined. In the following examples, I´ll stick with just the discount rate, but the rules would work exactly the same for reserve requirements. (At this writing, the Fed hasn´t touched reserve requirements since the fall of 1981.)"

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!
Last edited by pirx; Feb 17, 2006 at 6:29pm.
