February 2, 2005      Fed Raises Rates

 

If you refer to our section on Martin Zweig, you will see where we discuss fed rate hikes.     

I have mentioned below some of the new data that has changed since our last posting.

Primary* Credit 2
New York
2.25% 09-Jan-03
2.00% 25-Jun-03
2.25% 30-Jun-04
2.50% 10-Aug-04
2.75% 21-Sep-04
3.00% 10-Nov-04
3.25% 14-Dec-04
3.50% 02-Feb-05

 

It looks as though the score would now be a -6.  The indicator appears to be in "extremely bearish" mode.  The first hike was on June 30, 2004. On August 10, 2004, the indicator became moderately bearish.  On September 21, 2004, the indicator became extremely bearish.   Yet, when you look at the chart of the DJI since September 21, 2004, it is yet to tell us a bearish picture.  This will be something to watch.

Keep an eye on prime rate as well. 

What is interesting is that the 10 year treasury is lower today, than it was during June 2004.