Technical Market Action The market for the seventh successive day on Thursday. On the basis of cloling prices, the industrials have regained 7.04 poi.nts ot' approximntcly 40 of tIle 17.28 point drop from the May high of 212.50 to lc.st week's low of 195.22. Comparable figures on th' rv.ils are 1.89 points or npproxi;,l!ltely 24 of 7.90 point drop fr'om the Mcy high of 68.31 to the recent low of 60.41. The utilities have regained 1.91 or approximately 46 of the 4.11 point drop from 4.3.74 to 39.63. So far, i t is quite eVident that the c.ctinn of the rail average he.s not been as favorable as the.t of the other tV/o averLCges. For the nenr term, .;ould expect nt J ec.st a mjnor sell-off from these levels cnd possibJy c testing of last week's lows. Several recommended issues shown good technical action in th recent sell-off. iunerice.n Steel Found.ries held obove the 40 level, at which point there 1.0 good 00wnside resiste.nce. Thursdw's close oms 44. Advise purchc.se OD soft spots. Delaware & Hudson also held at th.) 42 support le.,el. This issue is down sharply from thE. bte 1945 hi!Oh of 57 1/2. Since the beginnin,; of the yec.r it hall hcld in n trading ronge be. tween roughly 50 and 38 Vii til most of the Iork in the 1JJ-42 mnge. J,n upside emerGence '.ould inMcntc much higher levels. watch the issue olosely. Also like the action of ThL stock is down from the 30 1/8 hiGh pnd at 26-24 vlould appem' to be in n buying range. Long term techniccl pc,ttern jndic' tes much hiGhGr levels eventually. Sunshine Mining also has n very interesting technic2.1 pattern. On the last reaction, support \'S evident at the old 18 resist.nce level. The pattern, if 18 holes, indicates re-nccumulation. Th( stock sold above 20 on Thursday compared wi.th the 191.6 hj;;h of 24. August 1, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing DO\v-Jones Industrials . Dow-Jones Hnils DOVi-Jones 65-Stock 202.26 62.30 74.85 me opinions expressed in this letter ere the personal interpretation of charts by Mr. Edmund W. Tabell end are not presented as the opinions of Shiekls & Company.

Technical Market Action As was to be expected after eight successive days of riSing prices, the market turned reactionary on Monday and the industrial average closed 89 cents lower. The rails, by comparison, put in a better performaBce and were only 10 cents lower on the day. Volume was small at 790,000 shares. ConSider Monday's action normal. Would expect some further irresuiarity anQ a possible testing of the recent aows,. Ability to hold above this point woUld indicate the probability of a turn in the intetmediate trend. In looking over the technical patterns of individual issues and groups, it becomes quite evident that extreme selectivity will be the outstanding factor in the market from here on. While a great many issues seemingly have reached the objectives outlined by their primary base formations, there are a great many others that indiCate substantially higher levels. An outstanding example of the latter type is to be found in the railroad equipment group. Most issues in this classification are selling near the lows of the-year and well below not only the highs of 1945-46, but also of 1936-37. With a favotable future sales outlook, this group appears extremely attractive. Listed below are several issues in this group that have bullish long term technical patterns. Purchase is advised on reactions – American Brake Shoe American Car & Foundry American Locomotive American Steel Foundries General Railway Signal Lima Locomotive Poor &Co. B Pressed Steel Car Westinghouse Air Brake High 1936-37 80 3/4 71 58 7/8 731/4 65 1/8 83 1/2 33 1/8 31 7/8 57 3/4 High 1945-46 64 1/2 72 3/8 44 1/2 50 1/2 49 88 27 1/4 30 41 5/8 Low 50 57 1/4 33 39 3/4 36 63 18 3/8 19 5/8 32 1/2 Last 56 70 1/4 34 1/2 41 3/4 40 66 20 1/4 22 1/2 35 7/8 August 5, 1946 Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock EDMUNQ W. TABELL SHIELDS & COMPANY 201.93 62.53 74.85 The opinions tlzpreled in this letter are the personal interpretatioD of eham by Mr. Edmund W. label! and are not presented IllS the opinions of & Company.

Technical Market Action The market rallied again on Thursday ane, both the industrials and rails reached new highs on the from the July 10Vis. Volume showed a sliGht incras at 890,000 shares. After eight dayo of advancing prices, the two day decline of Monday ane Tuesday was relatively small. The indus- trials reacted only 2.91 after a rise of 9.08 while the mils reacted only 94 cents (tfocr a rolly of Volume indicctions have been sli5htly favor- llblc dGO ,ith a totLl of 1,430,000 shares on Monday-Tuesday d(;cline ag..inst 1,960,000 on the liec..nesday-Thursday rdly. Mter some week-m.d irregulc.rity would expect an extension of tho advance. The market, hOllever, is in a hec,vy supply area and would expect the rise to be selective. From the action of the market, beliove t.h intermediate down- trend reached its low on July 24th whon the industrial average hit 194.33 and the rails nere at a Ion of 60.26. Tclmical rf'csons for this vim1point are (1) The decline stopped at t!.lC i'i.r&t of the three sur,ort levels mentioned by the writer in recent letters, namely – the 194 – 1912 0.1'00. in the industrials and the 60 hvel in the rail uverai;8. Incidentally, at this level, the in- dustrials had retraced approY.imately two-thirds of th FebruaI'J to May rise 17hile the rails had lost all thoir gains nnd forme'; a double bottom at the FE'bruc.ry lo..s. (2) The rally in the industrinls rotraced, in eight cays, npproximatE'ly half of the thirty-Seven d!,y June-July decline. (3) Instead of the rclly meotinb at the loCical 199-200 level, the market pushed through heavy supply to 204. (4) T'llerc han boen a frf!ctional penetration of the int6rmediQtc dO\'.'lltrend line on the Dow-Jones industrial avorage, the Dow-Jon combine, CiveTfigo aml on the Ne.; York. Tir.les averc.ge. From this reasoning it volllc' see'. the uptr(;nd has resumed anu soft spots should be used for accumula;ion of selected issues. l.s mentioned before, fa.vor the heQvy industry shares some of the conawner issus could also move up sharply from an oversold position. As to the long te,rm trend, the market continuos to point toward higher levels. l,ugust 8, 1946 EDMUND IV. l'ABELL SHlELDS & COMPflNY Closing Dow-Jones Industrials Dow-Jones RnUs Do;/-JonGs 65-Stork 204.10 62.74 75.42 The opinions expreued in this letter are the personal interpretation of charts by Mr. Edmund W. robell and are not presented 0111 the opinions of Shiekls & Company.

Technical Market Action

Technical Market Action Thursdays market. VIGS reactionary with the jndustria1 average eell- ing 1. 50 10Vier and the rai.1s down 77. Vo1u.me, hOle-,-er, was at 'lll exceed Lngly low pace Vii t.h transactions t.ot9.11ing only 620,000 sIlo.res. Since the ('igh succesfli ve up dayG of the eight point rf.lly from the July low, the mal'ket has spent. the last E'lc'lcn days in a trading shelf bounded roughly by 205 em; 200. H i.s possible that t.his consolidating period 10 t'lking the place of a eecondl'Y correction of t.he adv-ance fro, t.i1e July lows. The sm'lll volume d.,ring this tends to support thi s viP-IV. from technical vJ.evTloint, the longer t.he market holdo in this rongp., the tec()mes the that the July lew was the low of the int.ermedil).te duc'irle. Tile l1at tern now b('inG formed begills to take on the appecrance 0'; a head Dnd ilhoulders b,)t.tom, wit! the June low of around ;,00 b8ing the right sh,ouldor, the JU;.y low of 1';'5 te1ng the head llJ1d t.'e present period bei.l1g left shoulder. Tcchni caily, such a format.ion usufllly sugge,;r.s the end of 11 down tl'c,n,l and the start of a slr.e– able advance. Dropping the techlii.cal 1anlllClge, fed tho t tn.ding purchases can be made durin6 the current irregu.l9.ri. ty. Dr;-U.pve the mnrket j IJ breElk out of 1,110 present t.Iadi.ng ranee on the upS.Ldl md at test the old hi.;fJs. Favor the heavy indust.ry i.ssucs ana rails. August 19/,6 ED),IUND Ii. TASF..LL SHIFl.DS & Closing t.ri aL' DOil-Jones Ra us DJ 65 Stock Comp. 202.49 62.35 7'1. 87 o The opinions e.pressed in this letter ere the personal interpretation of charts by Mr. Edmund W. Tabel! end ore not presented as the opinions of Shields & Company. ,/ – –

Technical Market Action After reaching intra-day lows of 198.90 on the industrials and 61.Bl on t,he rails, tIle market rallj ed on Monday and recovered a good portion of the losseG. Volume was small, both on the decline and the subsequent recovery and tfJtnllp.d only 660,000 shares. Mon(lay's decline was the fourth successive day of decline for the industrial average and the thl rd fur the rails. This is about the usual time durE.tion for mtnor moves and would expect further recovery starting in thE' next, day or so. A1l'o at the dlLY's low, the industrial average hud Itg11.in reached the important 199 1e-vel, at which pcint the average met support in the May and in the JUnE. declines. Tae ,July di.p was the only t.ime in almost four months v;h'm thls sur,port level dld not hold. /The decline of the last three days has not destroyed the poterotially favora.ble technical patt..,rn mentioned in lost week's letter. In fact, if the level aroun(! 199 holds, the p'ltt')m has strengthened7 Monday's intra-day low of 1913.90 vlith the 198.98 low of md, 17hn matched up wHh the July 101' of 194.33, the forma-t;ioll still suggeA1;c the possibility of a head md shoulders bottom. As mentioned l,efore, this would be an extremely strong pattern ane; lndlcate the probability of n very important point in market. Ii, on the other b.nd, the av('!'().ge breaks sub&tantialJ.y b.)low the 199 level, a testing of the July low would be in order. \'Ilile this would destroy the poten- tir.lJ.y fav')I'able pattern above, i. t would not tecome disturbing until the ,Tuly low was pene t.atGd. In thut event, the lndication vJOuld 11e a continuut.ion of t1P aowntrend and a t.ef.tin(; of the February low. Still fa-vor trading purchases on cur-Lmt irregularj ty in anticjpation of thl market h01riing r,round )Jresent 10Vis and the July low being th bottom of the int.eTIllediatc d.,cline. Ap. to tradine mE'dium3, still favor hel.v; lnc.utry iSGu80 and rails. The action of th,' rails has bf'n impressivE' in the P'.l, rlecline. A of utiliW issues have also improved tr,chn-Lu,,, action )'ecently; Like l'Jner.ican Power & Lit'.lIt whieh, at Monday's clOSE' of 18 3/B, i3 available 4 1/8 points below the yea.-' s high of 22 1/2. August 19, 1946 ED1F.UND 1'. TABELL SHIELDS & COMPMIT Closing Dow-Jones Industrials Dow-Jones Rails Dow-Joner c.5-Stock 200.19 62.26 74.34 .The opinions expressed ;… thjl lett.r are the personal interpretation of cherts by Mr. Edmund W. Tab.1I lind are (It prflS8nted as the opinions of Shields & Company.

Technical Market Action After a sharp reaction in the final hour Wednesday, the market conti- nued its decline with increasing volume on Thursday. A partial recovery in the afternoon regained 2.14 of the maximum 5.47 loss in the industrial average and 72 cents of the 1.66 drop in the rail average. Transactions totalled 1,530,000 shares \IIi th the heaviest volume of tradine on the decline. . , Thursday's action ViaS discouraging inasmuch as the potentially favorable pattern built up since the July lows was destroyed.,, However, at the day's lows of 194.53 and 60.50, both averages held above the comparable July lows of 194.33 and 60.26. This leads to the possibility that, ,if the lows hold, the market is building up a double bottom in both averages. Some confirmation of this possibility is given by the action of the market itself which, on Thursday, showed earmarks of a selling climax with volume double that of recent sessions, the tape late and a large number of issues traded. Technical action suggests trading purchases around present levels with stops below Thursday's lows. If the market fails to hold at the July lows, it would laean a conti- nuation of the intermediate decline. In that event, the indication would be a testing of the February low of around 185. Even if level were broken would not expect more than 182-174 as the maxinmm. If the rail average reacts below 60, would expect a further correction to 57.54. Even if t.'JE.se levels are reached, and there is no indication that this will happen until the July lows are broken, still expect higher prices over the long term. Consider the present long trading range, in which the market has made little progress since early in the year, a hesitating phase rather than major distribution. Would continue to use weakness to accumulate, for long term holding, issues recently recommendeo.. These include steels, railroad equipments, machinery issues and others in the heavy equipment as well as selected rails. August 22, 1946 EDMUND vi. TABELL SHIELDS & COMPAlfY Closing Pow-Jones Industrials Dow-.Tones Rails Dow-Jones 65-Stock 196.66 61.22 73.08 j The opinions oll'pressed in this letter are the personel interpretation of chart. by Mr. Edmund W. lebell lind ere not presented as the opinions of Shields & Company.

Technical Market Action the industrial average broke thy199 support level on J uly 23ru, the intermediate trend waG i.ndicated as down..The next day, on July 24th, we iSGued a letter which we are reprinting in full'because, after over a month, the pattern ('ut.Lind then otill applj es now/ The letter fo110ws- By th 199 support level on 'l'ue3day, the .intermediate trend is now indicated as dOI'm, At 195, the industrail has now reacted approximately 18 point.s from the May top. How more decline is indi- cat.ed Tle question is not. easy to answer. l'11.ere are three possibili- ties. (1) COlmt indications point to the 19/,-191;' area as the first port level. t.t hwsday I S low of 194.79, the aver8ge was close to tl8.t level. If the market. turns aLlll and thL,; runge holds, (lnd the rail aver- age holds above 60, the bottom might be near present. levels. (2) The next. support point. is the Februaly lovi around, 185. If this point is lr! the industrials, it wouln seem that the rail average will also break 60 and in that event would indicate a reaction to 57-51.. (3) The third possibiLty is t.hat the Febt'llary low will be broken. In that event, the indjcations would be 182-174 on the Dow-Jones industrials, 57-',4 on the rails and 126-120 on t.he York TiMes average. T'le February low on this latter average waR 129. From the action of individual issues, would be more inclined to favor the second and third possibility, although the f.rst cannot be entirely rulen ou.t. Several indivirlual ioslles have broken out on the dovmside and indicate lower levels. Prominent in this category are automobiles auto accessories. Othl'r groups, including steels and metals, have held above support pointe but are very close to giving ,intermediate down trend Signals. TIl(' picture is uncertain enough to warrant R sideline poaiUon in all intermediate te-rm trading accounts until the pattern As for the long term trend, technical patterns still indicate hi,3her levels after the intermediate correction has passed. This is particularly true of thf' dUT'able goods issues and raj.ls. The prima! baStS en these groups indicate that prices considerably above the 1946 highs should eventua.lly be seen. Would not disturb long term holdings. , As i t turned Ollt, the first p03sihUlty worked out at that time as the market made a low of 194.33 on July 25 and then ralli en to 205.01 on . AU6'uot 14th. Last week the market reacted to 194.53 and July loVi. If this point. holds and the average sells 'lbove 205.01, the intermediate trend would bl' indicated as up. If tho' ,July low is penet!'utcd, such action would indi.cate a, continuat.ion of the intermediate declLnyand point to t11e second and thi.rd possibilHies outlined above. August 26, 1946 EDMUND W. TABELL SHIb'LDS & ClOSing Dow-Jones Indust.rials Dow-J lmcs Dow-Jonps 65-Stock 196.99 60.64 72.99 ,\ 1, & .,,, , ; ;. Lm ….. , ;……. Mr. Edmund W. T.bell and ere not pN,ented as the opinion' of Sh,eld. & c.o.,..p.ny.

Technical Market Action , After reaching new low territory in the mid-day sell-off an Wednes- day, the market rallied in the final hours of trading and recovered a good portion of the extreme losses of the day. Losses of 3.77 in the and 1.35 on the rails were cut to 1.01 and 45 at the close. Transactions were 'extremely heavy and totalled 2,190,000 shares. However, for the first time, volume indica- tions were favorable. The heaviest period of trading was in the hour between eleven o'clock to noon when 540,000 shares were turned over. During this period, the tape was not only behind on the downside, but after the decline was haJ\od, also was behind on the rally. In the third hour rally, volume was 420,000 shares and in the final hour rally, 480,000 shares were traded. Tuesday penetration of the low of 194.33 on the industrials and also of both the February and July lows on the rail average, indicated a conti- nuation of the intermediate downtrend. The doWntrend was first signalled on July 23rd when the 199 level of the industrial average was penetrated. HOViever, at Wednesday's lows of 187.27 on the industrials and 56.69 on the rails, the objectives mentioned as the second possible stopping point for the decline were reached. These figures, outlined in the letter of July 23rd and reprinted on August'26th, were a testing of the February industrial low of 184.05 and a reaction to the 57-54 area in the rail average. Wednesday's action might be seid to have met these objectives. Furthermore, several important key issues, notably U.S. Steel, met support at the proper level and failed to confirm the downtrend in the averages and in other individual issues. Also, some of the issues that have already signalled downtrends, either reached their first downside objectives or their first support levels. Thus, it would seem a good that at least a good technical rally or even a termination of the intermediate downtrend might have started from Wednesday's lows. A decline below Wednesday's lows VTould bring about a further of the extremely important February low of 184.06 in the industrial average./, August 28, 1946 EDMUND W. TABELL SHIELDS & COMPANY gosing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-stock 190.03 57.59 70.01 The opinion, elpressed in this letter are the personal )nterpretetion of cherts by Mr. Edmund W. Tabell and .ue not presented as the opinions of Shlekl, & Company.