Technical Market Action After a continuation of Friday's rally to an early morning high of 172.15 on th industrials and 48.09 on the rails, the market turned dull and irregular until the final two hours of trading when a new deluge of selling brought the averages down to intra-day 10Vis of 166.09 and 45.45. The closings were 166.56 on the Industrials, down 2.50, and 45.69 on the rails, off Both averages held above last week's lows of 164.09 and 45.37. Volume was 2,110,000 shares, with trading heaviest in the final hours. As to the action of the market, see no change from the last para- graph of our last letter dated September 19th , -, / ItWould hesitate to mention a possible buying point in the averages other than '1. t would be between here and approxi- mately 157. Would rather Ii-atch action of individual issues as it usually happens that all stocks do not make their lows at I 'the same time. It J \That we are witnessingI, in my opinion, is II building up of a base formation. In the process, some issues may sell somewhat lowr and the averages also may go into new low ground, possibly as low as the 160-157 range in the Dow-Jones industrials and around 107 (now approximately 112) on the New York Time; averages. However, a great many other issues have held at or above the lows of the last two weeks and may have already reached their objectives/, Advise purchases on weakness into the 'buying ranges mentioned in previous letters. Only a comparatively few such issues have reacted substantially below the Oller point of their buying areas. Addi tional buying ranges wi.ll be men ti oned shortly. . After the lows are reached, and in my opinion that point will be between present prices and 157, expect after a possible period of irregularity, a technical rally that should retrace one-third to two-thirds of the decline from the highs of 213 on the Dow-Jones industrials and 148 on the New York Times average. September 23, 1946 EDMUND W. TABELL SHIELDS & OJMPANY Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jonae 65-Stock 166.56 45Jf) 59.73 Th. opinions expressed in this lett.r 4r. the personal interpretatiOll of chart by Mr. Edmund W. Tabell and are net presented as the opinions of Shields & Company.

Technical Market Action The market continued the ro.1ly at a ;llghtJy reduced pace on Thllrsduy. Tho clos vms near the; highs of we day. The industrials closed at l74.,)6,llp 2.01 on the day', while the ruils closed 6f, hiGher at 48.68. From the September 19t.h 10,1 of 164.09 to Thursday's high of 175.45, t.he mnrkct '11'-8 rDlJi,)d eleven poL'lts. Percento.ecl1ise, tlrLs il3 th best ,'ally 'he industrial ,,Grage has h.G since April of year. T8chnicnll;, the murkct c.ppcf..rs to lUl.ve reactwd its low at l-.st Thurs- day's 1011 of 164.09. 'As pointed Llut in this j.etlE'l', tl1e selling since tile high volume dac' of 3,620,000 shares on SeptemlJer 4th V;c.s seemingly much ,maker than the buyinG. This Via; evidenced by tho fact thd i'roJll the ll'id-August top of approxima.tely 205, the markc t deClined, i n fourteen trc;.ciing to a low of 17/. on Septembpr 4th. This decltne molmtcd to 31 points or 15. In the next three weeks, regardlese 01' the heavy volume fl..'lC general pessimism, the market declined only ten polnts'from the 17/. 10'01 or D l03J then 6. actIon startin.g from 4th ,tae of t base pattern. A of all technical of individual ism8s show, thet of those with clc(!r cut about t.l ill''1'' their dOf'nside objectives, e.nother 14 arc Iithin a fe\, points of tne.l., ob,iective ;;hile t.he remaining 25 still shm sorne\;hat lower prl.cGs. Past expe-iellCL ha.'3 ShOhTI ..tions to be npproxLLUtely 70 correct. N')rml'l t.(-clmical ,.etlon ;'10111d cc.l foJ' retrac(,ment of' one-third to blo-thirds of the dccJinC'. Dcpcnding on I1hehcr the Mey top of 213 or the; August top of 205 ill uSbd, t!1i8 would call fcr , r1'11)' to somollh'3l' betllf'en 1'78 end 196. Obviously, it may G,k1 some time before T,'leRc objectives are re3.ched. Th, idec.l pattern \lOu1d be a rllly to thE. 178-180 crua follm-led by .C ti.on to the 174- 172 area – followed by a to l.rnild up D. futhcr base pattern. In any even t, the m1lricet nov; appears to be r. purchas,.. on X'cci,j.Ol).s. Of the nlneoy-nin8 buying ran,-;es lbtecl OVEr the past weeKS, cightysix reached the buying area. Of these ej ghty-p.l..c, only tw,.,'' recoted moru than 10 below the lOVier limit of th buying range. September 26, 1946 EDl1UND \!. TAEr..LL SHIELDS & CO;PANY Closing ….. DOVi-Jones In&lstrials DO'i'I-Jones Rails Dow-Jones 65-St.ock 174.96 48.68 62.83 The opinions e ..prolSed in this letter are the personal interpretation of chem by Mr. Edmund W. Taboll end are not presented as tho .opinions of Shields & Company.

Technical Market Action After declining to a lov; of 170.4'4 on Mondt,y, doom ).65 from I the previous close, the indllstrial ave-c.ge recoveted a go,)d portion of tIle day's losses in th final hours of trading Dnd closed t' 72.42, dO\ID on the'dJ.Y. The- mil D.verJ.ge reached 10\, of 47.14, dom e1.28 rom the pFEvious close rind closed Ct 47.72 off 70 cents. VolUla. was c'nal1 r, L 1,020,000 shllres. , Believe the r.larket action of both Monday TId I 'ms definitely encour,ging. At the day' 5 10,5 of 170.44 and 47.14, the. industric.ls hrd lost of I.he rully from the or rO;gh1y 44. The rails retmced 1.75 of the . 13 rrJ,ly, or arproxi,i,tcly 1/2. The correction 11'5 held v;ithin nOl'mal boun'ls md has been on exccoedj,ngly small ,'olullle. The three advcine; of last week avero.od sl1o.res hile tl,lC to days of de- eline averaged bela' the million sharr; j!1ark. tion Industrials 'Ihe action of the recvnt me.rlmt is shown in the follovling tabula- 1946 High 213.36 191.6 LOl' 164.09 Dcclille 9/26, High 175.45 Advance' 11.36 , 'd Ad- 9/0 De-' – – -vance LO;7s cline Decline 23 170.44 5.01 44 Rails 68.77 44.76 24.01 48.89 4.13 17 47,141.75 42 Believe the market will have a full second9.ry correction of at' least one-third to one-half of the declines of 1.9.27 !U1.d 24.01. The market, to be in the process of formi.ni5 !l basE'. BeliE've the bast' area ma,,, be built up in the 170-180 area. Would expect thc'next' move to, carry to the up;er part of the range. September )0, 1946 EDflWND if. TABELL SHIELDS & COMPANY Closing Do,,-Jones 'nm strinJ.s DOlhTonell Rails Dow-JonCiJ b;,-Stock 172.42 47.72 61.86 ,. The Clpinios e.pressed in this letter are the penonal interpretation of cherts by Mr. Edmund W. label! end Ire not pre,entad 8' the opinions of Shields & Comp.ny. ,

Technical Market Action The market continuos to back fill and, in the .rriter's is in the process of forming a bas, or accumulati.on aren prior to a !'uly -.,hat rill retrrce one-third to two-thirds of the decline frOl the bull market hlghs. This process may take some further timc bafore emelging out of the posfible base formation on the tipddc. The background u5ulllly found in nccumulatior, periods is pn'sent today, namely, nervousness and general bearishness, lOll volume and lck of )Jublie interest. In the process, some further time may be consumed tmd prices may work r. little lower. However, continuod backing and filling within the con1'ins; of thG nccumulation increc.ses ,.he rally possibili ttl'S. The patt.';rn not yet bC' complete and, therefore, it is not possible t.o suggGst upside objectives for indiVidual issuc.;G. Ho,lever, a great mnny issues have built up sizeable (lreaS thnt have the l1pjJoarance of Dr.Se formations. /,merican Rolling Mills is a case in point. . The high for the y,e.r is 42 3/8. Tha stock spEnt considerable time in the 41-39 Illld built l.'P hat turned out to be a dlstributional are!) around pricEs. The top count of t.hiG distri- bution zona indico.ted a decline to the 32-26 IU0a and the previous TJattern aIM ,indicated support at 29. ThE' stock's buying i.n our list of early September \las 32-29. The low of the reCGn t d(3cline ,12.5 30 1/8. The fluctuations of recent flo'eks ha'te built up a pattern betwPGn tho full figure points of 35 and 31 thlJ.t st.ggests a strong formation. At 'the mompnt, oi.lity to rench 36 be bullish signal e.nd confirm the opinion that the pattun in re-accuffiulation n.rea. If the stock continues to hold abovc 32, the pattm is especiall, as the head and shouloGrs form2t.ion nO\7 prEs!'nt El posslble rE.lly, if 36 is reached, to a ne'l high in the 45-47 area. Even if tile stock declines i.o the 32 or 31 arce., the base vould still suggest a rally to 39-41 if 3( is reached. Of course, a contilluance of fluctuations in above areas ';,olud furthar broaden the ba.sc and suggest even !1ic;her rally pos5ibilit.j.e3 if 36 were penetrat.ed. A dedi8 below the recent low of 30 lis would nocessitate Ie. new base puttern at lower levels. This probably would delay the for a consLdcrable tim period. There are l.1any other iSSues thai, he.ve, in the last few wueks, built' up si.milar pll.tterns t.o AmErican Rollirlg 1,1Uls. In fact most of the issues th&t reached the buylng are'l.S aentioned in the SPoptember lutt.crs hlwe such patterns thcugh in many cases 'they do not suger-t qui. to as much percc.n te ge appreciation, October 4, 1946 Closing Doye-Jone L!1dustrials Dow-Jones RD.ils 65-Stock EDMUND Ii. TABELL SHIELllS &. ANY 169.80 47.10 61.09 Th. opinionpressed in this letter ere the personal interpretation of chtll' by M,. Edmund W. Teb.II lind e'. nof presenfed as tfle opinion. of Shield. & Complny. . -.

Technical Market Action market continues to back and fill and gives the appearance of building up a area between the recent high of 175.45 and the September low of 164.08. These two figures are the important points to watch for the moment. Abili ty to rally above the 175.45 level woul.d indicate an intermediate uptrend in the primary bear market. A reaction below the 164.08 level would indicate a continuation of the downtrend to the Last week ..e mentioned the technical pattern of American Rolling Mills and its possible base pattern. The confirmation of the base and the indication of an uptrend would be a sale at 36. Listed belon are a number of issues with formations somewhat similar to that of American Rolling Mills, together with their favorable pen8tration point and their recent low. All of these issues suggest possible accumulation – AAllegheny Ludlum Allied Stores Allis Chalmers American Foreign Pro 2nd pfd. Anaconda Copper Bliss (E.W.) Crane & Company Jones & Laughlin Locr.heed Mead Corporation National Distillers Rayonier Republic Steel Revere Copper Reynolds Metals Union Bag U. S. Rubber u. S. Steel Recent Low 38 36 36 5/8 19 35 1/8 181/2 33 1/2 33 1/4 26 1/2 18 3/8 21 1/2 171/4 25 18 24 1/2 23 51 5/8 66 Favorable At 45 42 42 24 40 23 39 40 33 22 26 21 30 23 31 30 62 73 Last Sale 42 1/2 39 1/8 37 21 1/4 37 1/4 201/2 35 1/2 35 3/4 28 1/4 22 1/4 231/2 18 26 1/2 19 3/4 26 1/4 27 1/4 571/4 68 3/4 A very small group of issues have already penetrated favorable upside levels, but the number is so small that there is the possibility of a false signal, Prominent in this select group is Bethlehem Steel which penetrated upside resistance at 96. Its base pattern suggests a rally to the 109-111 area. EDMUND Fl. TABELL october 7, 1946 SHIELDS & COMPANY Closing Dow-Jones Industrials DOIJ-Jones Rails Dow-Jones 65-Stock 168.87 46.65 60.71 The opinions expressed in thiS letter are the perlonal interpretation of cherh by Mr. Edmund W. iebell end are not presented liS the opinions of Shield. & Company

Technical Market Action After an early morning rally led by the stGels, weakness in General Motors and Chrysler startGd another selling wave on Tuesday and the industrial -laverage sold off shnrpl,v'to close 1.53 10Vier at 167.34. Tne rail average at 46.32, off 33 cents, acted relatively better thnn the industrials. Volume was 1,220,000 shares Vii th trading increaSing on the last hour sell-off. Tuesday's action was discouraging for the near term inasmuch as it casts some doubt on the ability of the averages to hold at the September 10Vis. The market has closed in seven of the last trading days and, volume has been low, the market has sho\m little ability to rally. The pickup in volume in the hour suggests the possibility of a renewal of liquidating pressure. HoV/ever, would consider any sharp sell-off from this level as a buying opportunity. A break below the September lovls of 164.013 Vlould undoubtedly some discouraged selling into the market and might cause a sharp break to the figures we have often mentioned as the ultimate downside objective, namely, 160-157 in the Dow-Jones industrial average, 107-100 in the New York Times average and 112-110 in the New York Herald-Tribune average. Would be in- clined to follow the last two averages as they both are combined averages and may more truly reflect the general picture. In other words, I7hile the market may work somewhat lower if the September lows are lJroken, would expect long term support near the figures men tioned above and 1V0uld buy on further \leruness. EDMUND W. TABELL SHIELDS & COMPANY October 8, 1946 Closing Dow-Jones Industrials 167.34 Dow-Jones Rails 46.32 DoV/-Jones 65-Stock 60.20 The opInions expressed in this letter ate the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the op1nions of Shields & Company.

Technical Market Action The decline continued on Wednesday and the industrial average closed at a new 10Vi' of J.63.12, 0.ovm (1 22 compared with the 80ptember 10Vi closing of 165.17. The Sptemb(;r intra.day low of L64.09 rIll.S alsc pen9tre.ted at slow ef 162.80. Th. rail !lVOregb 111so clos(;0. at a 'lew 10Vl at 1.4.69, dOHn comparGd with tj',e September low closing of 45.69. The intra- dey low \IUS 44.50 IIhile til(; Sept.eL\ber low lveS 1,.4.76. Volume increftGed to 2,020,000 shares. Wednesday' ,,ctiOll suggests b. declir.e to t!1c oftm ment.ioned 10'/-100 area in the Ne; Times average. While \'!ednesday's closing is not availa!le at present I.Titing, believe t.i1e avercge closed firOlmc J.09-110. A compamble figure is 112-110 in the Herald-Tribune avcrllf.e hich believe closod around 116. i, compareble fj gure in he Ilol'!-Jones indJstr.al aVErat;e would be around 'rhes fi;uro8 arc the top count indications of the n1,ire FebruurJ to r,!ay dist.ribution period. In'li vidual issues sho a Sl.muar pat.tern. ,\ gr6rtt ,Jony have reached t.heir dormsido objectives. j, list, of these objectives or Ollying r('s was listed earl;, in Septon,br. A study of thE' list. 11111 shm thpt -Lhe majori. t.y liuvE' hold lilt thin tl,e) aonfincs of obj ecti.vfJ levels. Other indi- vidual. issues suggest some'fhat lower prices Dnd declines in these issues, while otlJrs aro holdin!s, could carry the averages do;m to the figures INmtiolled above. \'iould usc, further 'IIcamess into the 112-110 anon of the Hemld- Tribune or 107-100 in Nev, York nmes everage, to buy issups mentioned, togtlther Vlith their buying ranr.;or, in lett.ers. The decline C'f Wednesdc..'1 wal the sixth successi'e d,W of ,',eli., anu the nint.h out of thE tEn past trading days. Early wealmess on 'l'hursrl,l,\' could be foJ.loHed by at. lRst a technical rally. outsta.1ding indi.vidual issures suegt'st I.nerican Rolling Mills, Doehler-J..T'vis and Revre Copper .f t.h( averages rch t.he 2.bove mentioned areas. October 9, 1946 EDiAUN D i TABELL SHIELDS & CO;,lPAl'IY l l i l.. ! l . DoV/-J Olle S Industrials D017-J OnE'S RailS Dow-Jones 65-Stock 163.12 44.69 58.53 The opinions pressed in this letter ere the personal interpretation of charts by Mr. Edmund W. Tebel! end ate not pres,,'nted as the opinions of Shields & Company.

Technical Market Action After six days of the anticipated rally took place on Thursday. The industrial after rec.ching a low of 161. 61, closed at 164.94 – up on the day. The rail averago cl.osed 1.00 h.ighcr at 45.69 after reaching a 10w of 44.00. Volume was just equal to the previoun day at 2,220,000 shares. the averages broke out of the 175-165 truding range on the dovmside, a majori ty of the individual i SSlles still have , pc.ttern that could turn out to be It buse pattern. These patt.erns llsually take It long pcriud of time to form and cover a wide price range. l'or instance, t.he distribu- tional on averages and on individual issues for this decline Has formed betVlGon January and If/ay of this year. During thi.s period the indus- trial average fluctuated between 213 mid 185. Individual stocks in the 50 price range fluctuated in a ten point area in a buildJng up of a distribu- tional zone. It mus b be expected that the same process \li11 tlUce place in building up an base period. It is a bit too early at the moment to attempt to name the limits of this range. This mUCh, hOl'mver, can be said. In the paGt, the New York 100-Stock average has the best of price objectivee for the longer term while tho other Uleruges have been excellent in forecasting pri.ce ob,jectives for the shortrlr swings. On Wednesday, this aver;ge reached a low of 1l6.12 and presumably was somewhat lOVier on Thursday. The I'lri.ter's technical work indicates that the downside objective for the preS81T, bear markt on this average is the 112-109 ,rea. Obviously, per- . fect acwracy is not to be expected and the ultirate' l017 may be a point or two em either si.de. ,lhether this objectivb .is to be reached immediately or after a further rally is not indicated. However, the important thing to be borne in mind is that the average has reacted from a hi gh of approxima- tely 137. Thus the has already reacted 21 pain ts. It is possible thilt a furthr.r correction of frol'l 4 to 7 points may be seen but, at l16, the average has already completed 75 to 85 of the correction. In indivi- dual issues, undoubtedly mmy have reached or are 'fGry close to their lo\'/s. It is these issues that have been ment.Ioned in previous buying rnnge letters. Other stocks hav\) somewhat further to go. 'rhE.ir b1\yingrnnges vlill be listed as the levels are approached. Would use periods of t.o accumulate recommended issues as buying ranges nre reached. Expect a wide trading over the next few as individual issues and the av('rages l'lLlild up bas!) at'8RS in a yet to be defined rnnge. EDMUND VI. TABFLL October 10, 1946 SHIELDS & Closing Do\,,-Jones Industrials DOO7-JQne s Rails Don-Jones 65-Stock l64.94 45.69 59.34 The opinions e.pressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tbeli and are not presented as the opinions of Shields & Company.

Technical Market Action The market the 1'0 1evel on Monday, Q rdly of hpproxi- 8jgh1.. points i'ram tho Ions of the .oast YlOek. Tho I.tde fluctuc..tions of thtl past month DIld e half c,mtinue to buij,d up a bro,,-d t1'Ild4.ng which, in my Opillion, 'Pill f)vGntue.Uy turn OHt to be a base forlnut.ion. Considbrably mor,o time maybe sppnt in the 'n'ea and would expect the outer limits t.o bo Ilider than til(' nt 1'75-162 ranp,8. lJe118'lG lIe -1'8 in a period the rnv()rse of' to ,qay heY1 th& jndustrid aVerHO fludullted ill tj'8 v;id(J 213-185 .. .in building up , d..lstribut,ional vho.sIJ. \ i 11 t, cftcr ..' (.If In builaing 'IP tuthe p.cosant Gyral.;ions 'lccumu2.a t.i on aroa moaf''nre thE. 6xtent ()f t.bo., nct lont. term riso. Prc.'sent il1dications POiEt to the 112-109 levl of the New Y,)rk lkrald-Tl'lbuuC' cver8.ge as the extr8f18 low but ..u extr8mf.ly sll&rp rally could take place bE-fo.tc these prices are seen. In individual l.be steel group seems to be sharline; the bGst tecmicll actic.'ll. 1'Ollld look to thi. group to funich tht clUE to the dir()ctio!l ()f th; next intermcdic'.te rnOV0. Ability of i1lnoricrul Rolling jLUlls La rend, 36, of Beth ehem 2t1)(1 t-J 100 and U. S. SteeJ to rc,ach 73, would imllca– a bl'oa-l extellGion of tilL 1'l.11y. Hc.ve compiled a list of sti –;ks togc t.J1;r with tbei.r indi.catcd reactl'Jn ll''1(,18 ao technically ',-,easnrd by the to dif-trtbution11 or()2… This lisl. 'Idll lJ,.;\ sent yo.. requ8st. . Tl'JJELL October 14, 16 DOil-jones Industrinls DOVJ-lTol1es Rai1s Dow-J 011('S 65-St0C 169.86 46.e6 61.01 1lte opiniOftS nprened iI. this I.tter ere the personel interpretetion of cherb by Mr. Edmund W. Tabell end ar. not p'Mented .s the opinions of Shields & Company.

Technical Market Action The industrial average closed 6.08 higher on Tuesday, in thfJ sharpst rally since the start of the decline. closing level of 175.94 was above the September rally closing of l74.9h. The also rallied sharply to gain 2.14 at 49.00. This closing level was-also above the comparable September high. The market looks higher. Ability of Bethlehem and U. S. Steel to rally above their former resistance is teclmically reassuring. The steels, as a group, show the best technical action. Other favorable groups are the metals, building stocks and utilities. other important penetration points are stores at 42, American Bank Note at 32, American & Foreign Fouer 2nd pfd. at 24, American Rolling Mills at ;6, Anaconda at 1.0, Bliss at 23, Jones & I,augr,lin at 40, Kc;mnecott at 48, R8public Steel at 30, Reynolds Metals at 31, \\heeling Stepl at 1.3. l'.'hile the market looks higher, would expect a consol id3tion somewhere along the line before the top is reached. The market has rallied ovet' 13 points in less than a week. EDMUND H. TABELL SHIELDS & COMPANY October 15, 1946 II Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 175.94 49.00 63.26 – ———, The opinions flxpreued in this letter ere the perOnel interpretation of charts by Mr. Edmund W. Tabn and arl1 not presented a. the opinion. of Shields & Company.