Tabell’s Market Letter – June 13, 1946

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.