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Technical Market Action In the letter of June 27th t reviewed mY recommendations of the prev10ua ten months and selected appr6mately sixt,y stooks that ppeared extremely attractive from a technioal point of View. Since that time a few additional issues have been added. The list is large ilfla is composed of all sorts and varieties of issues. Some are ill the high priced group and lsome are in lower priced catego17' Some are semi-investment in chlll'acter while others are extremely specule.tive. Some are selling near the highs of the year and others are near the year's low. How- ever, from a teohnical point of' view, they have two points in common. First, at some time during the past twelve months they have reached their downside object- ives as outlined by the broad distribution tops of early 1946. Second, they have formed large, potential base areas that would indicate substantially higher levels 1 penetrated on the upside. In some instances, the upside penetration has alrea occurred. These issues have been underlined in the list below; – Adams Express, American Cyanamid, JIIiIer1eEll'l Pells. 1\ b1g\l, Amei9sR !lata';. JI!l!eIi.canWll-terVlorlta,. Atlas Corp. ,Barnsdall Oil, Bliss (E.W.), Borg Warner, Campbell Wyant, Chicago NorthWest, ChrYsler, Cities Service. Colorado Fuel, -GPIIB8 , Crown Cork & Seal, Deere & Co., Doehler.larv1s, Eagle Picher, Eastern Airlines, E9setRB iiMteJoitIi, Electric Power & Light, Elliott Co., Evans Products, Fansteel, Fl.intkote, General cable, General Motors, General RailwEW Signal, Gulf' Oil, Houlle Hershey, HOUSton Oil, HeWi S8, Illinois Central, Interlake Iron, International Mineral, Jones & Laughlin, Joy Manufacturing. IstetuS–e w9!P Ford, Mullins ManufaCturing. MurrEW Corp., National Supply, Ohio Oil, Oliver Corp., Pepsi-Cola. Phelps Dodge, Pure Oil,Rayonier. Revere Copper, Seaboard Airline, Seaboard 011, Shamrock Oil, Sharon Steel, Simmons, Standard Oil of New Jersey, Standard Gas 4 pfd., Texas Pacific Coal &Oil, Union Bag & Paper, Union Carbide, Union Pacific, United Aircraft, U-. S. & Foreign Securities, U. S. Pipa, U.S.Steel, Westinghouse Airbrake, Wk .11ng Steel Worthington Pump, Youngatown Sheet & Tube TIeatinghouse Electric. The list does not pretend to be all-inclusive. It does contein what appears to be the most attractive issues in the most attractive groups. Most of them have .been recommended in the past during dips into our often recommended 160-170 Dow.Jones industrial average range. Two neVI issues, Union Carbide (closing 104i) -and Union Pacific (closing l.3Qt) are mentioned for the first time todfW as additions .for the semi-investment t;ype account. Wednesd81's market action was very impressive. On volume of l,260,OOO shares, the first over-a-million day since July .30th, the industrial average advanced 2.0.3 to close at 178.7.3 and the rails olosed 6.3 cents higher at 48.8;. Monday's reaotion to 174.82 and 47 .38 tested last week's lows of 174.02 and 46.91. Wednesday's rally sharply penetrated last week's rally highs of 177.ll and 4S .40. The minor trend is now indicated ns up. This is first change of trend since the seven week correction from the July highs. It seemingly indicates that the .correction has been completed and the uptrend resumed. While it is too so, to'. state that the public psychology has changed, Wednesday's action was a step in. th right direction. Perhaps the needed spark to start the latent buying power will, be a Dow TheoI7 bull market signal. That signal will be given when the industrials q rails panetrate the July highs of 187.66 and 51.92. Continue to repeat our thought that recent decline from the July highs was a correction of the sharp, twenty-SiX point rally from the MEW lows and that the July highs will eventually be penetrated. EDMUND W. TABELL September 17, 1947 SHIELDS 8 COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-8tock l78.7.3 48.84 64.08 The opinions llI.pressed in this leHer ere the penel Interpretation of c.herb by Mr. Edmund W. Tebel! end are not presented u the opinions of Shields & Company.