Tabell’s Market Letter – September 19, 1946

Technical Market Action Thursday's decline decisively penctre, ted the lows of last week and continued the previous dOlmtrend inMcations. The industrial avel'age lost to close at 165.17. The close WEW near the day's low, of 164.09. The rr,il average closed 2.28, lower at 46.lJ.. The low of t.he day on the rail average was 45.7S, Volume WIlS heavy at 2,S90,000 shares. While the penetration of last week's lows is discouraging, this does not seem to be the time to become unduly bearish. The smart selling in this market took place twenty to thirty points higher and it would 3.ppear that present sell- ing is of the weak and forced variety. This uocs not say that tne market will not work lower at this stage but would expect, as mentioned before, a strong support level at or sbove the 160-157 level in tbe Dow-Jones industrials. This 'aould mean, at the lower figure, a to'tal decline of 56 points from -the buD market highs. At. Thursday's closo, the market already dnclined 4S points. Comparable 1071 counts on the New York Times aerag, is 107,100 (now about 110-112) and 112-110 on the Herald Tribune average (now about 117). / It is to note thef, of the apprOximately 100 stocks mwtioned Ln last week's letters, together wi th their buying areas. only a very few have sold below tha lower limits of the buying runge. Listed below are the downside indi.cations in a number of market laaders. 191.6 !igh Racent Lo'.'l Last Sale Dovmside Objectve Anaconda Copper Bethlehem Steel Chrysler duPont Eastmun Kodak General Electric General Motors Kennecott Copper Intornational NiCkel Monteomery Ws.rd Pennsylvania R. R. Union R. R. U. S. Rubber u. S. Steel Westinghouse 51 '1/8 114 3/4 141 227 263 52 LIz SO 3/8 60 1/4 42 7/8 1041/2 471/2 168 1/2 80 97 3/8 39 3/4 35 1/8 89 S2 1/2 169 205 37 5/8 51 41 29 1/2 ' 65 5/S 30 1201/2 51 1/2 66 24 1/4 361/S 89 82 5/8 170 205 l!S 37 5/8 51 1/2 J,2 29 5/8 66 5/13 30 1/4 120 1/2 52 3/4 661/13 24 J/S 33 – 30 87 – 81 S4 – 80 170 – 160 205 – 195 3S – 36 ),3 50 43 – 40 31 – 29 64 – 59 31 – 2S 122 – 117 50 – 47 67 – 64 23 -, 2l Would hesitate to mention a possible buying point in the nverages other than it would be between here and approximately c 157. Would rather wat-ch action of individual issues as it usually happens that all stocks do not make 'their lows at one tim. EDMUND W. 'l'ABELL September 19. SHIELDS & COMPANY Closing Industrials Dow-Jones Rails Dow-Jones 65-Stock 165.17 ' 46.11 59.50 ', The opinions 811pressed in this letter are the penonal interpretation of chem by Mr. Edmund W. labell and .re not presented as the opinions of Shlelds & Company.