Technical Market Action Monday's' market opened sharply higher but, after the first hour and II half, the pace subsided and by the close most of the gains had been substantially reduced. Volume of trading in first hour was 570,000 shares which was over one-third of entire day's transactions. At the high of the day, the industrial average reached 208.59, up 2.97 over Friday's close, while the rails at 66.90 were up 1.09. At the close, the industrials, at 206.47, had retained only 85 cents of the gain while the rails, at 65.78, retraced the day's gains and closed 3 cents lower. The last hour action was rather discouraging but, at the day's high, the industrials had reached the early June distributional area of 208-212. The market stayed within this range for fifteen trading days prior to the recent sharp sell-off and overhead resistance is to be expected as the market approaches this area. The of the rail average to rally more strongly was also a rather discouraging factor. Most favorable action over the near term would be a Sidewise movement for the next few days, followed by a above Monday's highs. The only thing that would change the writer's constructive attitude toward the intermediate trend would be a decline that carried below the May and June lows. consider a closing below 199 as a bearish signal.;! Still favor the heavy industry group over the consumer group. Advise retention of recommended issues in both intermediate and long term list. July 1, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 206.47 65.78 77.03 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.

Technical Market Action In a dull session, the averages closed fractionally lower on Monday with the industrial average down 10 cents and the rails 19 cents lower Volume distinctly below average at 680,000 Monday's was meaningless as far as giving any, clue the near term trend of the market. The market is in between the near term overhead supply at 208-210 and the support level at 203-205. Patience may be required before either area is penetrated. For the intermediate term, the market continues to fluctuate within the 213-200 area in which trading range it has held for over three months. Technically, it would appear, that this range is a consolidating phase prior to an up- side penetration and a rally to the 220-225 area. The only technical happening that would cast any doubt on this hypothesis would be a reaction to below the support level. However, unless that event occurs, would continue to assume a constructive attitude marketwise. Listed below are issues recommended for lntermediate term appreciation. All of these, issues have attractive near term technical patterns. Purcho.se is advised around recommended leve11! and during periods of market weakness. Alleghany Corp pfd, American Metal, American Water Works, Atchison Topeka & S.F, Baltimore & Ohio, Bliss EW, Bridgeport Brass, Burroughs Adding Machine, Continental Can, Davison Chemical, Delaware & Hudson, Delaware Lack & West, Erie R. R. General Railway Signal, Hercules Motors, Inspiration Copper, Jones & Laughlin, Lima Locomotive, Miami Copper, Missouri Kan Texas, Natl. Walleable Steel, NY Chic & St. Louis, Northern Pacific, Rayonier, Revere Copper & Brass, Southern Pacific, Western Pacific Wheeling Steel. Also continue to advise retention of long term heavy industry recently published. EDMUND W. TABELL July 8, 1946 Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock SHIELDS & COMPANY 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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Technical Market Action Has the market, reached its bull market high is a question asked quite frequently these days by investors who ere worried by the uncertain action of the market. Of course, ll11ything can happen, but if the bull market has ended it has ended in a manner strangely different from other bull market endings. Most bull markets end in a tremendous wave of enthusiasm in which the vast majority of investors and traders are serenely optimistic about the future. These periods are usually marked by heavy volu.me of trading. The traditional tail-enders – the steels and other durable goods issues – have sharp price advances . To be transcribed later

Technical Market Action Since reaching l'.I! intra-day 10Vi of 194.33 e(l.rly last \7eek, the market h('5 rnllied to a hi.Gh of 199.11 on Monday. Directly overheac is the heavy resistance area. of 199 to 203. It will he interesting to note hot the markE,!; acts as this area is entered. Norr.1Il1 expectation pould be D. backing anay from the CiverheD.d resistllllce area and a testing of the lows of lo.st week. Last week's lows were just off the first support area of 194-191t. Consider the near term picture too uncert,'lin to rGcommend trc.ding purchases at this time. Regardless of whether the lows of last \'leek e.re to be the 1017S of the intermediute decline or whether onG of t11G t,iO 10weF support levels mentioned in last week's letter ni11 be rec.ched, still feel that eventually hi6her prices are indicated for the longer term. Believe that any further decline in the nvero.r;es will be selective and that SOIne individual issues and croups r.\ay alrec.dy have reached their lows. One group that seems. to already bo very near to its indicated down- side objective is the airline group. In most lnstQnces, the i.ssues in this co.tegory made their hiShs in late 1945 and have bew ir, c. declininr, pht.se since thct The four issues listed be10Y! 'prem' interesting for lon;; term hol'.1- inc. Advise purchl8e in periorls of mo.rket 80f';11oss. 1945-46 1946 High LoOl Mor,dr.y's Do'.vnside Close Objective Americun Airlines T.W.A. United Air Lines fur Lines 19 7/8 79 62 1/2 4D 1/2 14 5/8 44 3/4 35 1/8 20 1/8' 14 7/8 45 3/8 38 1/2 20 1/4 14 42 36 It rlill be noted that most of these-issues show substo.ntial declines from their hi;hs and at r()cwt 10IVs have just about ret'.ched their dOl'mside objectives. No objective is given for Western Jiir Li.nes as the objective is not clear. July 29, 1946 EDMUND W. TABELL SHIELDS & Cm.iPANY Dow-Jonos Industrials DOI1-Jones Rails Dow-Jone s 65-S;tock 198.23 61.40 73./4 The opinions expressed in this I.tter IIr. the perlonal interpretation of cherts by Mr. Edmund W. Tebell and ore not presented as the opinions of Shi.ld, &. Cornp4ny.