Tabell’s Market Letter – January 29, 1947
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Technical Market Action The industrial average, on Wednesday, moved into new high territory since the September decline. Volume increased sharply to total 1,530,00 shares. The industrial average closed at 180.17 up 1.49 and the rails were up 56 at 50.86. The industrials decisively penetrated the previous intermediate rally top of 179.25. The rails are still below the December intra-day high of 52.96. In our letter of January 9th, we mentioned the excellent action of the steel group and the extended base patterns that have been built up. The steels have been amotlng the market leaders for the past several sessions, so we are reprinting the list we published on that date. It will be noted that in most instances, individual issues have reached the downside objectives outlined by the early 1946 distribution areas. In, only two instances, American Rolling Mills and Youngstown Sheet & Tube has the upside penetration been reached. Reaching these penetration pOints would indicate an advance to the rally objectives noted. However, several others such as U. S. Steel are very close to reaching these points. The group shows an excellent technical pattern. 1946 !illlli. Allegheny Ludlum 61 1/8 r..mer. Rolling ran 42 3/8 Bethlehem Steel 114 3/4 Granite City Steel 27 1/4 Inland Steel 45 5/8 Jones & Laughlin 53 7/8 Lukens Steel 30 3/4 Midland Steel 62 1/2 Pittsburgh Steel 22 1/2 Republic Steel 407/8 Sharon Steel 40 3/8 u. S. Steel 97 3/8 Wheeling Steel 62 1/2 Youngstown S &T 83 7/8 Downside ObjectNe h2l! 35 – 33 32 – 26 8f' – 81 10 33 33 – 31 15 – 13 34 – 29 6 24 25-16 67-64 38-32 60-55 38 29 5/8 85 5/8 12 1/2 33 1/2 31 5/8 14 32 9 5/8 247/6 23 1/4 65 1/8 36 1/8 57 1/2 Upside Rally Penetration Objective 48 67 37 45 – 51 99 119 16 21 – 24 41 50 – 53 39 48-57 19 23 42 54-58 13 18 30 42 34 45 76 9L 44 69 89 Last S-1.e 457/8 37 961/4 15 39 5/S 367/8 17 7/S 39 3/4 11 1/2 29 1/4 33 1/4 75 7/8 42 1/2 691/8 Advise continued retention of recommended issues which were adised for purchase on weakness over the past four months. EDMUND W. Tr..BELL SHIELDS & COMPANY January 29, 1947 CloSing Dow-Jones Industrials Dow-J'ones Rails Dow-Jones 65-stock 180.17 50.66 65.17 TN opinion. expreued In th;, t…… ere the p.nonal 'ntet'pretatioa of cherts by Mr. Edmvftd W. Tebelt .nd ere not presented as the opinions of Shields Ie Company.