Martin Zweig - Martin Zweig Winning on Wall Street

HES A PHENOMENON. His letter is firmly in first place for performance. He has not lost money in any single year since I began tracking his performance.

Mark Hulbert, editor of the Hulbert Financial Digest

CLEARLY WRITTEN AND EASILY ASSIMILATED Winning on Wall Street is just about perfect for the investor who wants to achieve more than a modicum of control over his destiny, with a minimum of fuss and bother.

Systems and Forecasts

I was delighted to come across Winning on Wall Street. Martin Zweigs new book can be recommended to the individual investor. AS A FORECASTING SYSTEM, WINNING ON WALL STREET SHOWS IMPRESSIVE RESULTS.

William Hayes, Market Chronicle

HE HAS A PRETTY DARN GOOD RECORD WHEN IT COMES TO RIDING MARKET TRENDS AND PICKING STOCKS.

Kathryn M. Welling, Barrons

DR. MARTIN ZWEIG IS ONE OF THE MOST CREATIVE TECHNICAL ANALYSTS IN THE INVESTMENT INDUSTRY. He has done more statistical work to establish the reliability of his approach than perhaps any other publisher of a stock market service.

Robert Nurock, president, Investors Analysis, Wall Street Week

ONE OF THE CANNIEST MARKET WATCHERS AROUND.

Jack Egan, New York magazine

MARTY ZWEIG HAS ALREADY REACHED THE HEIGHTS OF EVERY FACET OF THE ADVISORY BUSINESS a record like that is not a matter of luck. The results of Martys work place him on the top rung among market strategists and timers.

Timer Digest

BUY IT, READ IT, DIGEST ITS WEALTH OF KNOWLEDGE AND REVIEW IT FREQUENTLY Martin Zweig ranks as one of the great American success stories in the investment advisory business.

Yale Hirsch, Smart Money

WHEN A NEWSLETTER WRITER LEADS ALL HIS COMPETITION IN PICKING STOCKS FOR A YEAR, YOU MIGHT DISMISS IT AS A LUCKY STREAK. BUT WHEN THE SAME WRITER COMES BACK AND REPEATS HIS TRIUMPH FOR A SECOND YEAR RUNNING, ITS CLEARLY TIME TO CONSIDER WHAT HE MAY HAVE GOING FOR HIM THAT THE OTHERS DONT.

Louis Rukeyser

WHEN ZWEIG TALKS, PEOPLE LISTEN. Analysts who have foretold the crash have achieved guru status. Chief among them may be Marty Zweig.

TIME

[One of] a handful of terrific books by terrific writers recommended because the celebrated newsletter writer has, in fact, been winning on Wall Street for quite some time.

Forbes

Few market forecasters get more respect on Wall Street than Martin Zweig.

Money

IF MARTY ZWEIG WERE PLAYING BASEBALL, HED HIT .400 AND 62 HOMERS AT THE SAME TIME.

Investors Intelligence

CAN MAKE ANY INVESTOR A WINNER ON WALL STREET. The book is probably the best stock market book in ten years and is highly recommended for all investors and students of the market.

Lowe Investment & Financial Letter

A GREAT BOOK BY A GREAT STOCK MARKET SCIENTIST.

Walter A. Heiby, author of Dynamic Synthesis

WE RECOMMEND THE BOOK TO ALL READERS ACTIVE IN THE STOCK MARKET.

Income & Asset Advisory

ZWEIG HAS PROVEN BEYOND DOUBT THAT SUCH DISCIPLINED, PATIENT, FLEXIBLE TREND-FOLLOWERS CAN BE CONSISTENT WINNERS. NO CRYSTAL BALL NEEDED.

Dick Davis Digest

A SURE-FIRE SYSTEM FOR BEATING THE MARKET a clear and detailed analysis of market trends, interest rates, Federal Reserve policy, debt volume, market momentum, etc.

Publishers Weekly

AN EXCELLENT TOOL the book carefully explains the indicators and models that form the basis of Dr. Zweigs historically successful investment approach.

Miami Herald

THE COUNTRYS NO.1 STOCK PICKER shows, among other things, how to construct your own stock market indicators.

Memphis Business Journal

AN IN-DEPTH PRIMER FOR PLAYERS IN ONE OR MORE OF THE VARIOUS MARKETS WHO ARE LOOKING FOR AN EDGE. THIS COULD BE AN ANSWER TO PRAYERS.

Kirkus Reviews

AMERICAS HOTTEST STOCK PICKER Zweig makes this towns superagents seem like schleppers in comparison.

Los Angeles Magazine

SELF-HELP FOR THE INVESTOR! Winning on Wall Street offers a lucid explanation of the factors that influence market prices. Zweig fully explains the model he uses to spot bear and bull markets early.

Dallas Times-Herald

VALUABLE ADVICE A SOLID REFERENCE SOURCE.

Providence Sunday Journal

CAN MARTIN ZWEIGS WINNING ON WALL STREET HAVE VALUE FOR THE AVERAGE STOCK MARKET INVESTOR? THE ANSWER IS AN UNEQUIVOCAL YES.

Frederick C. Apter, Barrons

MORE THAN A GUIDE TO ADVANCES AND DECLINES WINNING ON WALL STREET IS A TIGHTLY WRITTEN ACCOUNT OF THE MANY SIGNALS, INDICATORS, AND RATIOS THAT, WHEN PROPERLY EMPLOYED, CAN PRODUCE GOOD RESULTS FOR INVESTORS.

Changing Times

Copyright 1986, 1990, 1994, 1997 by Martin E. Zweig

All rights reserved.

Warner Books

Hachette Book Group

237 Park Avenue

New York, NY 10017

Visit our website at www.HachetteBookGroup.com.

ISBN: 978-0-446-56168-6

First eBook Edition: June 2009

I d like to thank those whose contributions made this book possible: Joan Graff and Lisa Liss, who typed and retyped the drafts; Joe Di-Menna, Carol Whitehead, Tim Clark, Michael Schauss, Andrew Salamy, Catherine Nolan, and Tony Berkman of Zweig Securities, Ned Davis of Ned Davis Research and Ken Tower of Delafield, Harvey, Tabell for their research help; Debbie Drake (and Ned once again) of Ned Davis Research for their generous aid in doing the graphics; Jim Frost, Larry Kirshbaum, and everyone else at Warner Books; Nat Soble, my agent; Lou Rukeyser of Wall $treet Week and Alan Abelson of Barrens, who each, many years ago, gave me the opportunity to be heard or read when my career was embryonic; Jonathan Weiss, who taught me to trust my own stock market judgment; my mom and late father for obvious reasons; my late Uncle Mort, who first encouraged me to learn about the stock market; and most of all my friend and collaborator Morrie Gold-fischer, who first urged me to write this book and then diligently edited the manuscript and gave it cohesive direction, all the while abiding my idiosyncrasies and time constraints.

Contents

The Stock Market in the MillenniumHow Different Will It Be?

S ome thirty-five years ago, when I was starting my stock market career, some traders in brokerage houses were kept abreast of stock quotations by so-called chalk boys. It was their job to follow the old ticker tape that was blown up on a screen and periodically write down the latest prices of the leading stocks on a big blackboard.

We have certainly come a long way in a relatively short time. Now high-speed electronic transactions are routine. The global information highway is expanding explosively and our domestic economy is becoming increasingly global. What does this portend for investors as we approach the next millennium?

For one thing, we can look forward to ever-increasing volume on the exchanges. As information becomes available faster and in more detail, trading gets easier. Traders now have a wide range of options. You can trade online, you can contact some brokerage houses twenty-four hours a day, and you can even trade on your own computer.

Secondly, the trend toward a global economy will continue and accelerate. As information becomes more speedily available, it becomes easier for Americans to buy stocks and bonds in European, Asian, and third-world countries. Such trading by individual investors in mutual funds is already commonplace. Of course, foreigners are also getting more heavily involved in U.S. markets.