Tabell’s Market Letter – December 23, 1946

Technical Market Action After five days of advancing prices, the market eased off fractionally on Monday on reduced vOlume of 1,170,000 shares. Continue to like technical action and consider the market a purchase on minor corrections. Belated tax selling may result in some irregularity over the neAt few days, but lifting of this selling pressure and large re-investment demand should result in higher prices by the end of the year and into the first of the new year. Several of our recommended issues such as hnerican Cyanamid, Doehler- Jarvis, Rayonier, Reynolds MetG.ls and Standard Gas 4 pfd. have advanced sharply from their lows while others have shown less resiliency and are still relatively close to their buying levels. Consider such issues attractive. stocks are American & Forei Power 2nd fd. with a high of 44 1/8 and a low of 18 as compared with a last sale of 23 5 8, Baltimore & Ohio, pfd, at 23 1/4 with a 1946 range of 47 1/4 and 18 1/2, National Supply, which closed at 15 against a low of 11 7/8 and a high of 25 and Union Bag & Paper at 30 1/4. This last issue is particularly attractive technically and is Quite close to its upside breakout point of 31. Its pattorn indicates a priCe above the 1946 high of 39. if MERRY CHRI STMAS December 23, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 54-Stock 177.36 51.84 64.97 The opinions expressed in this letter are the perlOnel interpretation of charts by Mr. Edmund W. Tabell end are not presented as the opinions of Shields & Company.