Tabell’s Market Letter – July 21, 1947

Technical Market Action Deere & company rea.ebed a high of 42 3/4 last week and broke, out of the long accumulation range between 31 and 41 in which it has held since the September-October decline. This is a significantly bullish technical development and indicates that the issue is in both an intermediate and long term uptrend. Intermediate term indicatons point to a price objective of 56 and a longer term possibility of above 80. Advise purchase on dips. The stock was recommended in our letter of March 25th at 38. Mondays close was 41 1/2. lli2!illlearvis was recommended for purchase at 24 to 2l j.l'l our letter of September lOth. The subsequent low was 23 3/4. The February 1947 high was 37 1/2, just a fraction below the 37 7/8 high of 1946. The May decline held at 28 3/4. The stock is again near the double top of 1946 and 1947. An excellent potential base pattern has been built up and ability to penetrate the old highs would be extremely important technically. Advise holding committments and additional purchases on price dips. Mondays close waS 36. Earnings for 1946 were 4.83 a share, The 1947 first quarter earnings were 2.07. Eagle picher WaS first advised for purchase in our letter of September 10th in the 19-16 buying range. The subsequent low was 19. The stock has built up a strong base pattern in the 19-24 area, This area was penetrated on the upside last week when a new 1947 high of 25 1/4 was reached. , Technical indications point to a price objective of 37-39. The 1946 high was 30 J,8 Hold committments and add to holdings on technical corrections. Mondays close was 24 5/S. , The market appears to be a bit tired and in need of a little further correction before the intermediate term advance to the 196-201 level is resumed. The rails were strong on Monday and reached a new high for. the move at 50.64. This is still 3.01 below the February high of 53.65. The industrials, after reaching a new high at 187.15 early last week, reacted to a low of 182.51 in the later part of the week. Mondays low was 183.02. Can still see the possiibility of a further dip to the 181-177 level followed by new highs. EDMUND W. TABELL July 21, 1947 SHIELDS &COMPANY f!QlNQ Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65 stock Avg. 183.52 50.24 65.57 The opinions e.p,.oued1ft mi.&.L' l I.. re he personeA 'Interpretation of dlerts by Mr. Edmund W TbeJl end .I,. not prented a- the opinion. of Shitl'd, Company. 1