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TECHNICAL MARKET ACTION Both the rail and industrial averages closed higher on Tuesday after a session featured by several sharp up and down swings. After Monday's disappointing action, the markets performance on Tuesday was encouraging and gave indications that the short term trend may have shifted to the upside. The rail average reached a new low of 50.76on Tuesday, down 12.59 points from the years high of 63.35, and a 50 correction of the rise from the September 1944'low of approximately 42. This average has 'worked somewhat lower than writers expected 55-54 support area. However, at Tuesday's low, the rail average reached the heavy 50-51 s1lpport area and individual issues have reached their downside indications. Believe the rails are oversold and advise purchase of Alleghany, pfd. 43 5/8 Atchison 83 l/S .Lackawanna and Western 9 7/8 Illinois Central 29 3/4 New York Central 23 3/4 Northern Pacific 24 1/4 and Southern Pacific 43 3/8 The industrial average still continues to hold above the July low of 159.95.At Tuesday's low, this average was still two points above the low figure. Action 130 far is encouraging but a dip into new low tory would indicate a deeper penetration into the writers buying the top of which was just reached in the July dip. Moderate purchases have been advised and orders placed below the market in this group. The advice continues. Lockheed 25 1/2 and Boeing 21 have moved ahead from recommended levels of 24 and 20. Bell Air- craft 17 3/8 seems to have had a sufficient correction from its high of 24 1/2 and purchase is also advised, Armour 8 3/4 Briggs 42 Mesta Machine 40 3/8 and U.S. Industrial Chemical 42 172 also appear attractive. ' Continue to advocate the gradual of trading positions on and continue to stress the point that action of individual issues should be more significant than the action of the averages. Expect a two sided market before the general rise is resumed. August 21st, 1945. EDMUND W. TABELL SHIE LDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails 52.12 The opinions expressed in this letter are in the perpnal interpretation of charts by presented as the opinions of Shields & Company Edmund W. Tabell Company.