Viewing Month: June 1946

Tabell’s Market Letter – June 03, 1946

Tabell’s Market Letter – June 03, 1946

Tabell's Market Letter - June 03, 1946
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Technical Market Action Monday's market closed lower with all the averages showing minus signs at the close. The industrials were down 81 cents at 211.47, while the rails closed 95 cents lower at 66.92. The 65-Combined Stock average was doom 50 cents at 78.84. Volume was 1,210,000 Best acting issues included utilities and oils and some the mail order issues. , From May 20th to last Friday the industrials and rails advanced on seven trading to the extent of 7.06 on industrials and 4.09 on the rails against two days of decline totalling 58 cents and 24 cents. After such a sharp rise, the normal expectation would be at least a period of consolidation,if not a minor decline. As yet, the rail average has not confirmed the rise in the industrials with Inst Wednesday's high of 68.42 exactly equalling the February high of 68.42. However, consider the fact that the three combined averages decisively penetrated previous highs of greater importance. Based on the pattern of individual rail issues, expect a confirmation by the rail average shortly. Some of the utility holding company issues show excellent technical action. American Water Works at 28 indicates a resumption of the uptrend and a move to the 33-3 area over the, intermediate term. The close was 27 1/2. Continue to like the technical action of selected rails and heavy industry issues. Like steels, railroad equipment, machine companies, farm equipment and metals, and advise purchase on minor sell-offs. From a technical viewpoint, the formations suggest much greater profit possibilities in this group than in the consumer type issues such US stores, liquors and amusement issues. These issues had sharp price advances and in most cases, have about reached their longer term technical objectives. At best, a long consolidation period is indicated before a possible resumption of the advance. Switching from this into heavy industry shares seems indicated. June J, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials DOVi-Jones Rails Dow-Jones 65-Stock 211.47 66.92 78. 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 – June 11, 1946

Tabell’s Market Letter – June 11, 1946

Tabell's Market Letter - June 11, 1946
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Technical Market Action Tuesday's session turned reactionary after Mr. Truman's veto message on the Case Bill. The industrial was particularly hard hit to close 1.63 lower at 209.05. The low of the day was 208.92, in comparison to last week's low of 208.33. rail average also closed lower at 66.54, down 32 cents. However, the rails acted much better than the industrials and, during month of the day, sold above the previous close. At the day's high of 67.64, the average was in shooting distance of the bull market high of 68.42,- reached both in February and May. The nay's low of 66.44 compares with last week's low of 65.64. Volume at 1,080,000 at about the average of recent sessions, although there was a pickup in activity in last hour sell-off. Believe the clue to near term market action will be given by the rail average. A penetration of the bull market high of 68.42 would be a distinctly encouraging development. Based en the technical action of individual rail issues, believe the barrier will be penetrated shortly. However, until that event occurs, Would be only partially invested in intermediate term trading accounts. Below are listed recent recommendations. Purchase is advised on soft spots. Last Price When Sale Recommended Also like the market action of Burroughs Adding Machine. At Monday's close of 21, the stock is selling close to the years high of 21 1/2, but technical pattern is very favorable. June 11, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails 65-Composite Stocks 209.05 66.54 78.02 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 – June 13, 1946

Tabell’s Market Letter – June 13, 1946

Tabell's Market Letter - June 13, 1946
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Technical Market Action The rail average reached a new bull market high on Thursday with a gain of 1.21 for the day. The closing price of 68 .31 was 8 cents above the February high of 68.2.3 and the intra-day high of 68.47 was 5 cents- above the previous intra-day high of 68.42 reached both in February and May. The industrial average also closed higher at 210.56, up 1.60 on the day. Volume showed a slight at 1,150,000 shares. While the penetration of the rail average wap only fractional, it is a distinctly encouraging indication. 1JzIder the Dow -theory, the rail average has now confirmed the previous penetration of the industrial average in indicating a continuation of the major uptrend. To the writer, it does not necessarily mean on immediate sharp upswing but it does mean that special situations can be bought on minor price recessions. Advise continued retention of recommended issues and adding to list as the opportunity offers. Prefer the rails and heavy industry shares along with special situations. Would add to the list, two low priced rails that seem behind the market. They are Delaware. Lackawanna &Western Erie Railroad. D. L. & VI. closed at 13 5/8. The high for the year is 16 1/2, while Erie closed at 18 7/8 against a high of 2.3 1/8. neither issue has as yet reached the point that, technically, would indicate a resumption of their individual uptrends, action of the averages and other rail issues indicates that these bullish points of 14 for D. L. & Wand 21 for Erie will be reached. Ability to reach these figures would indicate higher levels. Purchase of both issues is recommended. June 13, 1946 EDMUND W.- TABELL SHIELDS & Closing Dow-Jones Industrials Dow…Jones Rails 65-Stock Composite 210.56 68 .31 78. 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 – June 17, 1946

Tabell’s Market Letter – June 17, 1946

Tabell's Market Letter - June 17, 1946
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Technical Market Action , After early firmness, the market turned irregular in later trading on Monday and the closing was mixed with the industrial average showing a loss of 23 cents at 210.13 while the rails closed 20 cents higher at 68,22. During the course of the day, the average reached 68.77, a new bull high. Trading continued restricted at 1,020,000. . The lack of follow through by the rail average after penetrating the old highs by only 0. slight fraction, is rather discouraging. At Monday's intra-day high of 68.77, the average was only slightly above the old 68.42 high of February. On the basis of closing prices, last week's closing high of 68.31 was only 8 cents above the February high of 68.2). Some Vow theory followers require a fuller penetration and do not believe that a new bull Signal will be given until a more decisive penetration Personally, believe that the action of individual rail issues portends an eventual larger penetration of the previous high and a confirmation of the bull market. However, believe such action may be delayed momentarily while the market consolidates around present levels or slightly lower.. Do not believe that any reaction, at' this stage, will be other than relatively minor. On Such a reaction would purchase rails, heavy industries, and other special-situations previously recommended.. Do not look for a broad upswing from this level but rather a very selective rise with many groups failing to participate to any great extent. Believe selection at this point,. will be of greater importance than heretofore. Hesitate to name a price objective on the Dow-Jones industrials for the intermediate move. The New York Times average, now at approximately 147, indicates an eventual 155-157 with support at 144-147. Comparable prices on the Dow-Jones average would most likely be around 220 on the industrials and 73-75 on the rails with support at 206-20 and 67. June 17, 1946 EDMUND w. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-J ones Rails 65-Stock Composite 210.13 68.22 78.79 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 – June 20, 1946

Tabell’s Market Letter – June 20, 1946

Tabell's Market Letter - June 20, 1946
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Technical Market Action The market sold off in the final hours of trading on Thursday on increased volume. The industrial average was down 5.22 and closed at practically the days low. Eastman Kodak which was dol'1Il 19 1/2 points, and duPont which was down 8 points were mainly responsible in causing such a steep decline in the average. The rails were down but acted relatively better than the industrials. Transactions totaled 1,310,000 shares, with more than half of the total turnover (670,000 shares) occurring in the final hours sell-off. Thursdays close of 200.52the market had decisively penetrated the 206 support level. If the reaction is nothing more than a correction, it should hold in the 200-197 area. Failure to hold in this support area, would be a rather ominous development, and would cast considerable doubt on the validity of the recent fractional confirmation of the rail As stated in the last letter, the fact that the rail penetration was not more is in it- self a disturbing note. However, several point to the possibility that the decline may be halted in the 200-197 support area. First, the shelf formation formed during the past two weeks and penetrated on the downside on Wednesday, indicates a reaction to points not much below present levels.' This is true for example of the New York Times average, which indicates 140-142. It is also true of a number of individual stocks, notably the steel group, which have just about reached the indicated reaction level, and also are near or at support points. Also, the market has now declined for five successive days, and the steepness of the decline of 9.61 in the last three days suggests the possibility of the approach of a selling climax. Would venture trading purchases on further \1eakness into the 200-197 area, Favor' the rails and heavy industry group together with selected specialties. Believe the possibilities good the decline will hold in the above mentioned area. However, a break below this level would be an unfavorable development. Suggest issues recently mentioned plus Wheeling steel (close 53 1/2) Rayonier (close 27 5/8) and Revere Copper (close 26 3/4). All these issues show bullish long term patterns. . June 20, EDMUND W. TABELL SHIELDS & COMPANY DO\'J-Jones Industrials Don-Jones Rails 65-Composite Stocks ,200.52 '66.05 75.63 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 – June 24, 1946

Tabell’s Market Letter – June 24, 1946

Tabell's Market Letter - June 24, 1946
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Technical Market Action After Friday's recovery the market turned dull and irregular on Monday with the industrials showing n gain of 47 cents at the close while the rail average lost 17 cents. Volume fell below the million share mark at 990,000 shares. Last week's reaction low was 198.98 which was Within the 200-197 support range. An long as this area holds, would not be concerned about the nearby trend. Breaking out of this range, however, would be 11 cautionary signal and indicD.t a possible testing of February low of 185. Regardless of the uncertainty of the term outlook, the longer term technical patterns in certain and individual issues indicate consider- ably higher prices over a period of In most cases, the issues that fall into this category are in the heavy industry or durable goods group end include steels, railroad equipment, machine and equipment, metals, building and ailied lines and office equipment. For long term these issues would seem to offer much better profit possibilities than those in the consumers goods group. The latter type issues have already advanced sharply and in most cases are already selling at or close to their long term technical objectives. also, in most cases, are selling considerably above their 1937 highs while the durable goods issues, in most instances are below their comparative highs. Below are listed a number of heavy industry issues whose technical patterns warrant consideration for long term appreciation. Purchase is recommended for patient holding regardless of minor fluctuation, rather than for intermediate term trading, although of the issues have also been recommended recently in the trading list. The issues are listed below. The balance will follow shortly. EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials 203.56 Dow-Jones Rails 66.33 Dow-Jones 65-stock 76. 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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