studying stock market trends

Prime Rate Indicator Buy and Sell Signals

Posted by on Jun 14th, 2009 in Market Timing, Prime Rate Indicator | 0 comments

Martin Zweig proposed the following rules for stock market buy and sell signals based upon the level and direction of interest rates in Winning on Wall Street.

Buy Signal: Any initial cut in the Prime Rate if the peak was less than 8 percent. Or, if the peak is 8 percent or greater, a buy signal comes on either the second of two cuts or a full 1 percent cut in the rate.

Sell Signal: Any initial hike in the Prime Rate if the low was 8 percent or greater. Or, if the low is less than 8 percent, a sell signal comes on either the second of two hikes or on a full 1 percent increase in the rate.

The table below documents the levels of the Prime Rate and the dates when the Prime Rate Indicator developed Buy or Sell Signals since 1947.  Click here to read how The Prime Rate Indicator may have passed its prime.

Signal Date of Change Prime Rate (%)
12/16/2008 3.25
10/29/2008 4
10/8/2008 4.5
4/30/2008 5
3/18/2008 5.25
1/30/2008 6
1/22/2008 6.5
12/11/2007 7.25
10/31/2007 7.5
Buy 9/18/2007 7.75
6/29/2006 8.25
5/10/2006 8
3/28/2006 7.75
1/31/2006 7.5
12/13/2005 7.25
11/1/2005 7
9/21/2005 6.75
8/9/2005 6.5
6/30/2005 6.25
5/3/2005 6
3/22/2005 5.75
2/2/2005 5.5
12/14/2004 5.25
11/10/2004 5
9/22/2004 4.75
Sell 8/11/2004 4.5
7/1/2004 4.25
6/27/2003 4
11/7/2002 4.25
12/12/2001 4.75
11/7/2001 5
10/3/2001 5.5
9/18/2001 6
8/22/2001 6.5
6/28/2001 6.75
5/16/2001 7
4/19/2001 7.5
3/21/2001 8
Buy 2/1/2001 8.5
1/4/2001 9
5/17/2000 9.5
3/22/2000 9
2/3/2000 8.75
11/17/1999 8.5
Sell 8/25/1999 8.25
7/1/1999 8
11/18/1998 7.75
Buy 10/16/1998 8
9/30/1998 8.25
Sell 3/27/1997 8.5
1/31/1996 8.25
Buy 12/20/1995 8.5
7/7/1995 8.75
2/1/1995 9
11/15/1994 8.5
8/16/1994 7.75
5/18/1994 7.25
Sell 4/19/1994 6.75
3/24/1994 6.25
7/2/1992 6
12/23/1991 6.5
11/6/1991 7.5
9/13/1991 8
5/1/1991 8.5
2/4/1991 9
1/2/1991 9.5
1/8/1990 10
Buy 7/31/1989 10.5
6/5/1989 11
2/24/1989 11.5
2/10/1989 11
11/28/1988 10.5
8/11/1988 10
7/14/1988 9.5
Sell 5/11/1988 9
2/2/1988 8.5
Buy 11/5/1987 8.75
10/22/1987 9
10/7/1987 9.25
9/4/1987 8.75
5/15/1987 8.25
Sell 5/1/1987 8
4/1/1987 7.75
8/26/1986 7.5
7/11/1986 8
4/21/1986 8.5
3/7/1986 9
6/18/1985 9.5
5/20/1985 10
1/15/1985 10.5
12/19/1984 10.75
11/28/1984 11.25
11/8/1984 11.75
10/24/1984 12
Buy 10/16/1984 12.5
9/27/1984 12.75
6/26/1984 13
5/8/1984 12.5
4/5/1984 12
3/19/1984 11.5
Sell 8/8/1983 11
2/21/1983 10.5
1/11/1983 11
11/22/1982 11.5
10/13/1982 12
10/7/1982 13
9/3/1982 13.5
8/18/1982 14
8/16/1982 14.5
8/2/1982 15
7/29/1982 15.5
Buy 7/20/1982 16
2/23/1982 16.5
2/18/1982 17
Sell 2/8/1982 16.5
12/3/1981 15.75
11/24/1981 16
11/16/1981 16.5
11/9/1981 17
11/3/1981 17.5
10/13/1981 18
10/5/1981 19
Buy 9/15/1981 19.5
7/8/1981 20.5
6/3/1981 20
5/22/1981 20.5
5/19/1981 20
5/11/1981 19.5
5/4/1981 19
4/30/1981 18
Sell 4/24/1981 17.5
4/2/1981 17
3/17/1981 17.5
3/10/1981 18
2/23/1981 19
2/3/1981 19.5
1/9/1981 20
Buy 1/2/1981 20.5
12/19/1980 21.5
12/16/1980 21
12/10/1980 20
12/5/1980 19
12/2/1980 18.5
11/26/1980 17.75
11/21/1980 17
11/17/1980 16.25
11/6/1980 15.5
10/29/1980 14.5
10/17/1980 14
10/1/1980 13.5
9/26/1980 13
9/19/1980 12.5
9/12/1980 12.25
9/8/1980 12
8/27/1980 11.5
Sell 8/22/1980 11.25
7/25/1980 11
7/7/1980 11.5
6/17/1980 12
6/13/1980 12.5
6/6/1980 13
5/30/1980 14
5/23/1980 14.5
5/16/1980 16.5
5/7/1980 17.5
Buy 5/1/1980 18.5
4/18/1980 19.5
4/2/1980 20
3/28/1980 19.5
3/19/1980 19
3/14/1980 18.5
3/7/1980 17.75
3/4/1980 17.25
2/29/1980 16.75
2/22/1980 16.5
2/19/1980 15.75
12/7/1979 15.25
11/30/1979 15.5
11/16/1979 14.75
11/9/1979 15.5
11/1/1979 15.25
10/23/1979 15
10/9/1979 14
9/28/1979 13.5
9/21/1979 13.25
9/14/1979 13
9/7/1979 12.75
8/28/1979 12.25
8/16/1979 12
7/27/1979 11.75
6/19/1979 11.5
12/26/1978 11.75
11/24/1978 11.5
11/17/1978 11
11/6/1978 10.75
11/1/1978 10.5
10/27/1978 10.25
10/13/1978 10
9/28/1978 9.75
9/15/1978 9.5
8/31/1978 9.25
7/30/1978 9
6/16/1978 8.75
5/26/1978 8.5
5/5/1978 8.25
1/10/1978 8
10/24/1977 7.75
10/7/1977 7.5
9/16/1977 7.25
8/22/1977 7
Sell 5/31/1977 6.75
5/13/1977 6.5
11/24/1976 6.25
11/1/1976 6.5
9/24/1976 6.75
Buy 8/3/1976 7
Sell 6/10/1976 7.25
6/1/1976 7
1/21/1976 6.75
1/12/1976 7
12/2/1975 7.25
11/7/1975 7.5
Buy 10/28/1975 7.75
9/12/1975 8
8/11/1975 7.75
Sell 7/29/1975 7.5
7/20/1975 7.25
6/9/1975 7
5/20/1975 7.25
3/24/1975 7.5
3/18/1975 7.75
3/10/1975 8
3/5/1975 8.25
2/24/1975 8.5
2/18/1975 8.75
2/10/1975 9
2/3/1975 9.25
1/28/1975 9.5
1/20/1975 9.75
1/15/1975 10
1/9/1975 10.25
11/25/1974 10.25
11/13/1974 10.75
11/6/1974 11
Buy 10/22/1974 11.25
10/8/1974 11.75
7/8/1974 12
6/27/1974 11.75
5/17/1974 11.5
5/10/1974 11.25
5/7/1974 11
5/2/1974 10.75
4/25/1974 10.5
4/22/1974 10.25
4/11/1974 10
4/8/1974 9.75
4/4/1974 9.5
4/1/1974 9.25
Sell 3/22/1974 9
2/25/1974 8.75
2/19/1974 9
Buy 2/11/1974 9.25
1/29/1974 9.5
Sell 12/3/1973 9.75
Buy 10/29/1973 9.5
10/23/1973 9.75
9/18/1973 10
8/28/1973 9.75
8/21/1973 9.5
8/13/1973 9.25
8/6/1973 9
7/30/1973 8.75
7/18/1973 8.5
7/9/1973 8.25
7/2/1973 8
6/22/1973 7.75
6/7/1973 7.5
5/25/1973 7.25
5/7/1973 7
4/19/1973 6.75
3/26/1973 6.5
2/27/1973 6.25
12/27/1972 6
10/3/1972 5.75
8/29/1972 5.5
6/27/1972 5.25
Sell 3/31/1972 5
3/20/1972 4.75
2/16/1972 4.5
1/18/1972 4.75
1/3/1972 5
12/17/1971 5.25
11/8/1971 5.5
Buy 10/20/1971 5.75
Sell 7/7/1971 6
4/23/1971 5.5
3/19/1971 5.25
3/11/1971 5.5
2/16/1971 5.75
1/18/1971 6
1/15/1971 6.25
1/6/1971 6.5
12/22/1970 6.75
11/23/1970 7
11/12/1970 7.25
Buy 9/21/1970 7.5
3/25/1970 8
6/9/1969 8.5
3/17/1969 7.5
1/7/1969 7
Sell 12/18/1968 6.75
12/2/1968 6.5
Buy 9/25/1968 6.25
Sell 4/19/1968 6.5
11/20/1967 6
3/27/1967 5.5
Buy 1/26/1967 5.75
8/16/1966 6
6/29/1966 5.75
Sell 3/10/1966 5.5
12/6/1965 5
Buy 8/23/1960 4.5
9/1/1959 5
Sell 5/18/1959 4.5
9/11/1958 4
4/21/1958 3.5
Buy 1/22/1958 4
8/6/1957 4.5
8/21/1956 4
4/13/1956 3.75
Sell 10/14/1955 3.5
8/4/1955 3.25
Buy 3/17/1954 3
4/27/1953 3.25
12/19/1951 3
10/17/1951 2.75
1/8/1951 2.5
Sell 9/22/1950 2.25
8/1/1948 2
12/1/1947 1.75
See a discussion of the Prime Rate Indicator by clicking here.

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