Tabell’s Market Letter – June 11, 1946

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.