Tabell’s Market Letter – April 12, 1945

TECHNICAL MARKET ACTION The action of the market over the past few days has been definitely encouraging. The industrial average has succeeded in breaking out of the inner limits of resistance at the 156-157 area and has rallied to within hailing distance of the year's closing high of 161.52. The rail average has pulled away from the dangerous 49 1/2 level and has reached a new high by a fraction. Would prefer a more convincing penetration of the rail average, say to 53 1/2, before becoming overly bullish on the group. The action of individual rail issues, such as Atchison and Great Northern preferred, indicates that there is a good possibility that 53 1/2 will be reached and that the average could carry on to the 55-56 level. If the industrial average succeeds in passing the previous high, the next objective is not entirely clear. At the moment, it would look like the 165-167 zone. In any event.. believe action of individual issues much more important than the fluctuations of the averages. Expect a continuation of the upward move in special situations that will far outdistance the averages. Listed below are profit-taking advices on a portion of recommended list. Prices, in most cases, are quite a bit above the market. Recommended At Air Reduction Allegheny-Ludlum Allied Stores Allis Chalmers American Bank Note American Bosch Anaconda Copper Bethlehem Steel California Packing Campbell, Wyant & Cannon Celanese Chrysler Foster Wheeler General Precision Great Northern Rwy. pfd, Grumman Aircraft Hercules Motors Jones &Laughlin Republic Steel Southern Railway 44 27 20 7/8 42 24 191/4 28 1/4 72 27 3/4 19 3/8 42 987/8 30 26 1/4 491/4 35 1/4 26 26 3/4 19 5/8 38 Last Sale 461/4 31 1/2 25 44 3/4 25 3/4 19 1/8 32 745/8 31 3/4 22 7/8 48 1/4' 101 34 1/2 26 3/4 52 1/8 341/8 29 3/4 30 3/4 22 1/8 40 Sell -A'L 48 35 27 47 28 24 37 83 35 27 50 110 38 33 57 40 35 34 24 43 Retention of the balance of recommended issues is still advised. For nm. purchases, like Cities Service (19) and Champion Paper (.31 1/8). Would add to holdings of American Car & Foundry (43 3/4) if stock is able to reach 46. In such an event, would expect, from a technical approach, a sizeable advance, EDMUND W. TABELL SHIE.DS & COMPANY April 12, 1945 Closing – Dow-Jones Industrials 158.48 Dow-Jones Rails 52.74 The opinions expressed in this letter are in the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company