Tabell’s Market Letter – September 09, 1946

Technical Market Action The averages failed to reach the indicated 185-190 selling level and after reaching a high of Un.Sl on Thursday, /J. rally of 8.17 from Wednesdsy's low of 173.64, the market started a slow decline on Friday which gathered momentum on Monday to cause a drop of 7.93 in the industriaI average and in the rails. Both averages at the day's lows of 170.53 and 50.0B were in new low territory for the current decline. Volume increased to 2,B20,000 Monday's action was discouraging inasmuch as it destroyed the possibility of last week' Il lows being the low point of the decline. However, a study of the technical pattern of bath the averages and individual issues the conclu- Sion' that we have already witnessed the larger part of the decline. Hesitate to suggest a stopping point for ,the' averages due to the extremely thin market and the distortion of bw our.or fivefilgner priced fluctuate widely on sales of a few hundred shares. Believe; hOviever,thatthe low.is Ilomewhere between 170 and the tap of seven year Ilccumulation range of late 1937 t.0194Z-;-This– level is around 160-157 on the DOVi-Jones industrials. Comparable figures on the New York Times average are 114 (now around llB)'and 110 on the Herald-Tribune (noVi arounl '118) However at this stage of the market would forget the averages and concen- trate on finding buying levels on individual issues. A great many issues are at or near technical buying areas. Listed below are a number of stocks that all show attractive longer technical patterns and are ncar indicatcd downside objGctives and support levels. Would buy only on wealmess into the buying range. Buying ranges of will follow shortly. Believe after the low is reached, the market will turn dull and hold in a narrow trading area before the advance is resumed. ' 1946 !!i,gh Recent LoVl Last Sale Buying Area Addressograph 41 3/4 26 24 – 22 Alleghany LudlUIII 61 liB 41 41 38 – 35 . ' American Chain -, ….. …,… 24 1/B,-,,24 – 22 ' American Metal 43 5/8 27 1/2 27 1/2. 26 – 2.3 American Radiator American Rolling Mills American Seating 2.4 7/8 42 3/B 33 1/2 14 liB 1,-/ 14 3/8 14 – 12 32 1/2J'5/.'lo ,33 32- 29 '2-'2.' f ,i 23 1/4 20 – 17 t Anaconda Copper 51 7/8 35 1/2 '!.5'i 36 1/2 33 -,30 Anchor Hocking Glass 621/4 38' 38 3B- 36 Atlantic Refining 51 1/2 36 1/2 ), 37 37 – 35 Baldwin Locomotive 38 7/8 23 '2.I'M 23 3/4 21 – 18 Barnsdall Oil Bendix 31 21 22 1/2 l – 19 5B 35 31 35 l/B 34 – 32 Blaw Knox 30 7/8 IB 20 19 – 16 Bliss (E.W.) 331/4 203/8 l.O 20 3/4 20 – 18 ,. Bucyrus Erie 25 3/8 15 15 15 – 13 California Packing Campbell Wyant 47 3/4 40 3/8 32 24 I 32 1/2 32 – 27 24 24 – 22 Certain-Teed Clark Equipment 257/B 71 l/B 16 -4Q.Y4' v 163/4 17 – 15 46 42 – 40 Collins & Aikman Colorado Fuel Consolidated Vultee Container Corporation —'Col'ltinental Di-amondFibre 63 1/2' 23 3/4 33 5/.B 54 IB 3!B' 42 11 20 33//44 9 1/2 9' 43 12 21 1/2. 9 1/2 39 – 35 12 – 10 21 – 19 – 34 10 – 9'- Crane Company Crown Cork Cutler Hammer 49 5/B 33 1/2 \ 62 36'11 45.28 35 35 – 30 361/4 35 – 33 29 29 – 26 – September 9, 1946 EI\'AUND w. TABELL SH!ELDS & COMPANY ClOSing DoYl-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 172.03 '50.45 62.77 The opinions exprelUtd in this letter ara the penonal interpretation of chatb by Mr. Edmund W. laball and ara not presented es the opinions of Shields & Company.