Tabell’s Market Letter – September 02, 1947

Technical Market Action Many individual issues have, in the past tHO months, succeeded in reaching new high terri tory for the year and a rare few, such as Mullins Manufacturing on Tuesday,have even bettered the 1946 highs. However, many individual n.il issues are still quite a bit below their 191,7 highs and considerably below their 1946 highs, as witness the list below High 1 High 1947 Last Sale Atchison, Topeka &Santa Fe R.R. 121 Atlantic Coast Line Chicago,Milwaukee & St.Paul, common Chicago & Northwestern Erie R. R. Great Northern, pfd. Gulf, Mobile & Ohio 83 38 49 1/2 23 1/8 65 3/4 30 1/4 Illinois Central Kansas Ci Southern 45 1/2 401/4 New York Central Northern PacifiC Pennsylvania R. R. 35 3/4 36 47 1/2 Seaboard Air Line Southern Pacific Southern RailViay Union PaCific 37 3/4 70 65 168 1/2 Reached High in late 1945. 99 59 14 5/8 27 5/8 12 1/2 49 5/ 14 7/8 30 28 1/2 22 3/8 22 7/8 26 7/8 24 5/8 47 1/4 50 1/2 147 83 5/8 51 1/4 9 1/8 19 3/4 9 3/4 40 1/4 12 1/2 26 5/8 22 1/2 15 1/4 20 1/2 19 167/8 44 38 1/4 139 5/8 The individual technical patterns of the rail issues are quite different Vlith some showing favorable patterns and others indic.ting that more backing and fillingund present levels is needed before much of a move is indicated. We have used only three issues in our recommended list. They are Chicago & North- western, Illinois Central and Seaboard Air Line. All three of these issues have favorable technical patterns. On the other hand, Nen York Central and Pennsylvania appear relatively unattractive and, as far 8.S price appreciation is concerned, prefe the three issues above and Northern PacifiC. The market on Tuesday continued Friday's pre-holiday rally but the volume continued small. The railS, at Tuesday's high of 45.53, were within a small fraction of the 49.62 high of August 18th Vlhich was the high after the August 11th 101V of 47.55. Ability to decisively penetrate 49.62 would be a favorable indication. The comparable figure on the industrials is 181.58. Tuesday's high was 180.56. Continue to advise purchases in 181-175 buying range. September 2, 1947 EDMUND i'f. TABELL SHIELDS & COMPANY ClOSings Dow-Jones Industrials Dow-Jones ReUs DOrl-Jones 65-Stock 179.81 49.32 64.54 n.. opinions eKpreued in Mlil I.tter ar. the peonal ,nterpretanotl of eharh by Mr. EJmuttd W. Tabell and are not presented as the opinions of Shield, & Company.