Tabell’s Market Letter – November 01, 1946

Technical Market Action The Market continued its pn Friday With the rails leading the parade. The rail average has penetrated the previous resistance levels and now indicates an intermediate uptrend. The rail average cdvanced 1.57 to close at 50.63. This is the first time in almost a year thct the rails have shown better than market action. All during the February-May distribution, the rail average hEd been the laggo.rd. The industrials also close.d higher at 171.76, up 2.61 on the day. This averv.ge has rallied over 11 points in 11 hours and it would be normal to expect soml) slowing up shortly. . It would appear that we are in an intermediate uptrend. The rails have already confirmed this. Expect the industrials, after further backing and filling, to follow. Objectives for the rally on the Dow-Jones averages are not clear. However, expect the New York Herald-Tribuna-average, now about 120, to reach 126-129. The 1946 high was 137 1/2. Expect a selective adVtlllCie with some issues showing much better than average action.; , each is sue Listed has buHt below are tVlenty-five stockl. up a strong base pattern wi.th They were indications os ef l ea.cltaerdg ebercaaul lsye , percentagewise if the formation is penetrated on the upside. In a number of a cases this has already happened. If so, it is noted b,y next to the upside penetration pOint. From a technical viewpoint, these issUes' appear to offer better profit possibilities than the average iepue and would suggest switching other issues into this group. Most of them ha've already been recommended as they reached their downside objectives during the past few weeks. Purchase is advised on soft spots. Technical developments in each issue will be noted in this letter from hereon. American o.r anamid Amer. & Foreign Pro 2nd pf American Rolling Mills Atchison Baltimore &OhiO, pfd Bethlehem Steel E. W. Bliss J. I. Case CertBin-teed Cities Service Doehler Jarvis Eagle Picher Evans Products General Cable Illinois Central Inter. Minerals Mead National SUpply Rayonier Revere Copper Reynolds Metals Simmons Union Bag U. S. RUbber U. S. Steel 1946 High 63 3/4 44 1/8 42 3/8 121 47 1/4 . 114 3/4 33 1/4 55 25 7/8 41 7/8 37 7/8 30 1/8 33 3/4 16 3/8 45 1/2 45 30 5/8 25 33 31 3/4 45 1/2 56-7/8 39 80 97 3/8 Recent Low 41 1/4 18 29 5/8 78 18 1/2 88 1/4 18 1/4 33 15 1/2 20 1/4 23 3/4 19 15 1/4 8 1/2 18 1/8 27 18 '3/8 12 1/8 17 1/4 18 24 1/2 33 1/4 23 51 1/2 65 1/8 Upside Breakout Point 50 23 36 91 25 102 23 41 20 27 29 23 22 12 24 34 21 18 21 23 31 42 31 62 75 Last 47 24 35 7/8 90 1/4 24 96 2l 1/4 363/4 18 1/4 26 1/4 28 2l 1/2 19 11 24 3/4 30 5/8 22 14 1/4 19 5/8 22 30 7/8 37 1/2 28 5/8 56 1/4 73 5/8 November 1, 1946 Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock EDMUND W,. TABELL SHIELDS & COMPANY 171.76 50.63 62.94 The opinions ezpreqed this letter ete the personal interpretation of cherts by Mr. Edmund W. rebell, end er. not presented as the opinion. of Shield. Company. —, '.