Tabell’s Market Letter – September 18, 1946

Technical Market Action The market was weak again on oml a gTeat ;,10ll! issues, includi.ng .' General Motors and sold t.o 11&tl 101 However, at their I level ,)1' .09, off 59 on the do.;T, tb i.ndU;trial a..rage was 8-/;111 libo',e t1C prcv10llu 1),' closiEg of 167.30. TIlE ,-hy's lCi! of 16.'3.1,0 ViaS above Uk pre/ious Int!'a-day ,Low of 65. 56. On th othel' w,, rliil av;r3!;l', at i tho closirg pries e,f 48.39 end th intro.-day low of 48.0r fracti onally ;enetl'ated the previous lows of 43.59 ar.cl 48.39. V'Jlumc, totalJ.c.d ;;,l90,000 share-I;. The indu aVf'1'3gr is noVi in j,he proecss f trlG low of ! ast Abilitr to h\)ld above this potnt. 'v,rf)ulr1. be a c()nstructivc dsvelopmE'nt an() intticate t,h possibility of formation of aCCllt'u1ation base in 167-176 arc- Factors faVoring this cre (1) Vohlme has declined each 3UccessivEl decline. 17018 ;as on Septenlbel' J,th when 'the ffip.rkeT. rechcd a lov' of 173.64. On Septc.ilbr 10th 7;hw t',6 m,rice;t rec.ched t.he low of 166.56, 'volume wac,; 3,100,00(1 sharps. Wedn6siay'; volume '8,5 2,190,000 s,a!'8s. It wf)ulcl SG';;'. that thE urgc!1cy of sf111ing j G dying dovl'I'.. (2) The fnarke t. j,.d not an thin as in the early par'J of tlE rlec.in(; B.!id bids seem to be e,,idence. I)..;clin(.s on Wednesday, in 11loet cas83, lerc eight!1.s of a point 'betwcpn sales in stand of poin toz. / If the low of last we.l in penetrate' it. mlu bE.' difJapPDinting inasmuch an accumula Lion would to frJrmc..cl at f,! level. HOo'l- ever, still eXJlGct thE' decline would not Cf;.l'l'Y much furthGr and vlould expAet, suppo-,.t, above the l;0-15'7 arc'!. ftu(ly of the tcclmical pttcrn of i.ndl viuuu cuZgcst th1)t. '–4bc,t!t 40 rr'echcd b.pproxiriate 1Yuy.ng leyels, about indicate only 2. fu!,tbe– decline ')f a few ptJinlis tile reltdndc lower levGls. This \-Quld l)c.;..r out the hypothes1 S t low ')oint in the DGW-J01l0S industrials Should be SOmeW!lt'.ce b,- twe,; 167 Ilnd 157. Comparable figuros on other averages would bu 11/.. -10,..' OIl York aV8rj.ge and 118-110 on the Hcrald- Trirun8 Regarding indiVidual In la.st s lEtt'3rs. Ot.her reached. sUll suggest the ranges published ….i11 bE.. '.f buyiob lGvels are St'ptGmber 18, 1946 EDMUND W. TABELL SHIELDS COl.iPANY Clo9iJ2g Inmlstrials D0-J onve Hails Dow-Jones 65-Stock If.9.07 48.39 61.39 The opinions eIpressed in this letter are the personal interpretetioQ of cherts by Mr. Edmund W, Tabell and afe not presented as the opinions of Shields & Company.