Viewing Month: May 1946

Tabell’s Market Letter – May 16, 1946

Tabell’s Market Letter – May 16, 1946

Tabell's Market Letter - May 16, 1946
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Technical Market Action After a slow irregular decline in the early hours of Thursdays market, the market rallied in the afternoon and regained the days losses to close higher on the day. 'the industrial average was up 1.12 on the day while the gained 18. 'Volume increased on the rally with an average hourly turnover of approximately 240,000 shares than 200,000 hourly aver- age during the morning irregularity. ' .The market, in the face of unfavorable news developments, has been putting on a remarkably good performance. Volume continues to dry up on declines, and increa3e on the rallies. Coupled with the ability of industrial issues to move ahead sharply into new territory, the action of the market has been much better than expected. However, from a technical viewpoint, the pattern still remains extremely uncertain. Under the Dow theory, the picture will not be changed until the rails confirm the April penetration of the industrials of the February highs. Waiting for this Signal, however, may require considerable patience and entail missing a good portion of the moves in other sections of the list. Would be satisfied if the two combined averages, the Dow Jones 65 stock average (now 76;59) and the New York Times 50 stock average (now about 142) were able to better their February highs of 77.92 and 144.71. In that event, believe possibilities would favor the resumption of the intermediate and long term advance which been stalled Since Waiting for this signal would necessitate possibly losing point or two of the advance, but as a matter of caution, would consider it insurance against the possibility a Sizeable decline if the pattern turns out unfavorably. In the meantime, continue to advise. liquid position in intermediate term trading accounts. May 16, 1946. TABELL SHIELDS & COMPANY CLOSING \ Don-Jones Industrials Dow-Jones Rails 206.17 63.96 The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

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Tabell’s Market Letter – May 22, 1946

Tabell’s Market Letter – May 22, 1946

Tabell's Market Letter - May 22, 1946
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Technical Market Action The market continued its advance on Wednesday for the third successive day with the rails again the best acting group. Activity increased on the advance with transactions totalling 1,590,000 shares. All three averages closed higher with the rails up 1.16, the up 75 cents and the utilities up 27 cents. The 65-Stock Composite average closed 59 cents higher at 77.71. The action of the rail average is impressive. While the average, at the closing price of 66.14,1s still more than two points the February high of 68.42, Wednesday's action was significant inasmuch as the April high of 65.63 was decisively penetrated, The rail average is now in un uptrend channel. As yet, the industrials have not penetrated the April high of 209.36. In fact, at Wednesday's high of 208.38, the average was also below the May high of 208.66. The 65-Stock Composite average at the closing of 77.71 was also below the February high' closing of 77.80. As mentioned before, a close above 78 in this average and a close above 145 in the New York Times 50-Stock average would be of considerable bullish significance. latest figures on the Times average are not available at present writing. While the picture is still uncertain until these averages succeed in reaching new high territory, the action of the rail average and of individual rail issues indicates a cautious buying policy in selected rails. In the last letter, suggested the purchase of Northern Pacific if 32 was reached and of Southern if 63 was reached. Northern Pacific hit this point on Wednesday and closed at 31 7/8. Purchase is advised. Southern Pacific reo.ched.63 on Tuesday and reached a high of 65 1/4 on Wednesday. Technically, the stock indicates higher levels. Two other rail issues with interesting technical patterns are Baltimore & Ohio and Western Pacific. Baltimore & Ohio has, for the last three months, built up a trading range between the full figure points of 25 and 22, with the actual low 21 1/2. The year's high was 30 1/2. The stock broke out of this range on Wednesday to reach a high of 26 and closed at 25 3/4'. Purchase is advised. Western Pacific closed at 54. For a long time, the issue has fluctuated in the 57-45 range, with this year's high and low being 56 and 46 1/2. While actually the stock has not broken out of its range, believe the action of. the rail average warrants purchase of Western Pacific because of the large possible base area formation. May 22, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails 208.00 66.14 The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

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Tabell’s Market Letter – May 27, 1946

Tabell’s Market Letter – May 27, 1946

Tabell's Market Letter - May 27, 1946
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Technical Market Action On increased volume, the market moved ahead-on Monday to reach new bull market high territory on both the Dow-Jones industrial average and the 65-Stock composite average. While the figures on the New York Times and New York Herald-Tribune average are not available at present writing, it is believed that these two averages reached new high territory. While the Dow-Jones rail average, 'at the day's high of 67.18, did not penetrate the February high of 68.42, the fact that has decisively penetrated the April high of 65.63 , plus the technical patterns of individual rail issues, indicates the probability that the February high will be penetrated in the near future. While e strict interpretation of the Dow Theory requires a confirmation by the roil average, the writer is of the opinion, as stated in recent letters, that a decisive penetration of the February highs by the three combined stock averages (Doll-Jones 65-Stock, New York Times and New York Herald-Tribune) would be sufficient to indicate a confirmation of the uptrend. This has, I believe, occurred and would now the 'market in trading accounts. This does not mean that the market will immediately move ahead in a straight line. There will undoubtedly be periods of uncertainty but the important signal given by Monday's penetration is that the possibility of a sizeable decline appears to be decidedly more remote. Would add a few more issues to the recommended list at this time, keeping a portion of funds available for purchase during technical corrections. Believe that the advance will continue to be selective and favor rails, railroad equipment, steels and metals. Suggest the following American Metal Bridgeport Brass General Railway Signal Hercules Motor Inspiration Copper Jones &Laughlin Lima Locomotive Miami Copper National Malleable Steel 1946 High 41 7/8 20 3/8 47 1/2 38 7/8 22 1/2 53 7/8 88 18 3/4 41 5/8 1946 Low 33 1/2 161/8 38 1/4 31 1/4 17 1/8 40 68 1/2 12 3/8 30 1/2 Monday's Close 41 3/4 18 1/2 44 34 1/2 21 3/8 48 7/8 75 171/2 34 7/8 May 27, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 209.42 66.65 78.25 The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

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