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Technical Market Action aille Hershel was recommended for purchase at 14 3/4 in our letter of June 11th. This automobile accessory issue reached 17 5i8.1ast week. Wednesdays close was 16 1/8. The stock has built up a potentially strong pattern and ability to cross the February high of 19 7/8 would be constructive. Hold purchases and buy in periods of market irregularity. Hou.ston Oil wqs recommended for purcha'se in the 17-15 buying range in our letter of September loth, The October low was 14 1/8. The stock was again recommended at 20 1/2 in our letter of April 24th. A new high for)the year was reached last week at 26 1/4. Wednesdays close was 24 1/2. The issue has an excellent technical pattern and indicates an intermediate term uptrend to the 40 level. Recommend retention of holdings and purchase during periods of market irregularity. Howe Sound was recommended for purchase at 36 in our letter of April 7th. The range for the year has been 38 3/4 high and 31 1/2 low. Wednesdays close was 35 1/2. A large potential base area has been built up and indica tions point to an eventual upside penetration. Hold committments and add to hold- ings during periods of market irregularity. Illinois Central haS one of the most favorable rail patterns. It is one of the few rail issues whose May low held at or above the October low. Illinois Central reached a low of 18 1/8 in both October and May. The stock was recommended for purchase in the 22-20 buying range in our letter of September 11th. The February high was 30 and last weeks high was 28 3/4. Wednesdays close was 26 3/8. A large potential base area has been built up in the 19-30 range and an upside penetration would indicate substantially higher levels. At Wednesdays intra-day low of 179.77, the industrial average had reached the upper part of our downside objective of the 181-177 area. We have advised caution in our recent letters due to the rapid rise from the 'May low of 161.38 to last weeks high of 187.66, Whether the averages have reached their actual low at 179.77 ()r work a little bit closer to 177 is unimportant, Consider u-. 181-177 as a buyir.g 1'9.n;e. Believe after some poscible further irregularity, both the 187.66 high (,f last week in the industrials and the 53.65 February high in the rails will ue penetrated on the upside. The intermediate term objective continues to be the 196-201 level. EDMUND W. TABELL July 30, 1947 SHIELDS & COMPANY CLO.';I!lG .-J;;;;;,jones Industrials low-Jones Rails Cow-Jones 65 Stock 180.91 4',0!,. 640 60 Th. opinions exprelMd in this I.tter are the pet50nal interpmation of ch….. by Mr. Edmund W. Tahel1 end at. not prnt.d .. the opinion' of Sh..ld. & Compeny.