Martin Zweig's Winning on Wall Street

April 10, 1986
Financial adviser and Wall Street Week TV panelist Zweig has been fascinated by the stock market since childhood, he tells usnot industry or commerce as such, but the buying and selling of stocks to make money. He has evidently made a lot of it, and has won the confidence of readers of his financial newsletter. Zweig is more enthusiastic about the intricacies of his "technical'' stock market approach than he can expect the average investor-reader to be. Nevertheless, he has produced here a clear and detailed analysis of market trends, interest rates, Federal Reserve policy, debt volume, market ``momentum,'' etc., that seems to carry the technical side of stock-market theory as far as it can go. The result is a sure-fire system for beating the marketprovided you make no mistakes.

April 15, 1986
Zweig's "proven methods for market forecasting and stock selection" are presented in a simplified version of the approach he uses in his Zweig Forecast newsletter calculations. Tables show how well an investor would have done by following the buy or sell signals for his Super Model, which is constructed of various "monetary" and "momentum" indicators. He also subjects his decisions to "sentiment" and "seasonal" indicators. Scan earnings reports, he advises, be flexible, have patience and discipline, set stop orders, and "don't fight the tape." The drawback, common to all such systems, is that transaction costs and taxes are ignored. Nor does Zweig's claim that his model can be accomplished on one transaction per year square with his admonition to diversify into several stocks. On balance, however, the concepts are clearly presented, and his success will probably create a demand. Alex Wenner, M.L.S., Bloomington, Ind.