Technical Market Action Today's letter is navoted to the technical action of the averages from early 1946 to date. Our discussion – for the sake of brevity – will be confined to the Dow-Jones industrial aver!.,e since it is the most universally known. The industrial average, during the first half-of 1946, was in a distributione phase and was building up a heavy top pattrn. The hit',h of 213 Vias reached in late May. The warning that the heavy volume in a relatively narrow range was distribution, was given in early July 1946 when the industrial average penetrated the important 200 resistanCe level 011 the downside. At this stage, this letter turned bearish. This \laming sienal was later confirmed in September, 1946, when market gave its famous bear market Dow Theor.y signal at 185. By combinin,i the various downside count indications of the three point, one point and half point fluctuations of the industrial average during the January to July distributional phase, the 170-160 area was arrived at as the indicated downside objective for the decline. 'This is the area which, for the past year or more we have conSistently ad- vi SEd as a longer term buying range. Since Septembr 1946, the market has dipped down into the 170-160 area on several occasions. Thus, the downside implications of the broad 1946 distribution he.vc, been reached. The actual 10Vis Vlere reached at 160.49 in October 1946 and 161.38 in May 1947. On three occasions thc, market has rallied back to the approximate Dow Th80ry bear market signal at 185. The February high was 184.96, the July high VIUS 187., and the October hif!h was 186.2.3. )'The industrial averag, as a result of the swings of the past year, has built up a twenty-five point trading range between, roughly, 185 and 160. The same pattern is present in the other market averages. Is this trading rtmge a period of accumulation or distribution The pattern is a broad one and a Sizeable move is indicated whe.'1 the range is decisivc,ly penetrated. An upside penetration would indica 210-215. A downside penetration would indicate somewhere around 145. The answer will not be given until the runge is penetrated in one direction or the other, eithor at 185-187 or at 160. This letter, has taken the stand, d continues to do so, that the eventual penetration will be on the upside. It believes that waiting for the averages to give a Dow Theory signal will result in losin, if present count indications are correct, at least half the nove. That is why stocks have been recommended for purchase in the 170-160 area rather than waiting for a bull market signal. If such a Signal is awai ted, it could result in such a buyinG Vls.ve that purchases could take place in the 190-195 one rather than the 185-187 zone, just as the DoVi Theory bear market signal r8sulted in such a selling wave that sales were closer to the 180-175 level thrul , Our' main reason for anticipating an upside penetration .is based on the alLlOi of indivicual stocks. Just as the averages built up distributional areas in the half of 1946, so did individual stocks. Just as the averaGes reached their downside objectives, so have the vast majority of indiVidual common stock issues. I would, vnture the opinion that 90 of individual common stocks have reached the objectives outlined by their 1946 distributional areas. The remaininc few are, at their lows, very close to the objectives outlined. The third feature of the technical action of the averages, and this is the Lportant point, does not hold true in individu21 stocks. The third fes.ture is that the averages have built up a long trading range that has not yet been penetrated either upside or dovmside. This is not true of individual issues. Here the patterns' are exceudingly diverse. Some stocks reached their 10Vis in October 1946, while others broke sharply below October lows and reached their,lows in May. A much smaller number hav. made their lows in the past few weeks. tso, some issues have built up substantial base areas, in 11 great mnny cases indicating relatively higher levels than a comparable 210-215 in averages. Others have built up only relatively small range and are in need of considerably lnore backing and filling before an important move is indicated. Still others have formed little or no range areas and require conSiderably more time before a move is indicated. Also, a great many individunl issues have reached their dovmside objectives, formed substantial base areas and heve penetrated them on the upside thus indicating individual bull markets of their own. These issues, on the base count indications, still have considerably hiGher price objectives. Individual issues with this pattern include such important stocks as American Sneltin, Chrysler, Deere & Company, Gulf Oil, Standard Oil of New Jersey, Union Earbide, Union PaCific and Youngstown Sheet & Tube, to mention only a few. On the other hand, I cannot recall, offhand, one single issue that has reached its.dovmside objective as outlined by the 1946 tops, then formed a wide trading range and then penetrated the range on the downside to indicate that the range was distribution rather than accumulation. This type of action on individual issues hardly indicates, at this stage, an e.rea of distribution and lOVier prices. It rather indicates (1) higher prices and (2) extreme selectivity. EDMUND W. TABELL November 5, 1947 T. Mr. op;.;o ..p…..d ;n Edmund W. label! end tM. arlit lett a the not presented as'l'ltlJ1.en\o.p.ii;nlti;orn'ws .Oetfl'Slfja1YJJu1q/s,o1fJ'eooamrpt.&nbyy. 'z-

Technical Market Action , The arket continues to act in accorance with normal technical procedure. This letter has ceen expecting strong resistance to the decline at slihUy above the September highs of 180-179. The current correction reached a 10\7 of 179.93 on Thursday, October 30th and rallied be,ck to 183.57 on Wednesday, NoveJ11bcr 5th. The dip of the plst fev; days has been on sharply reduced volutle crlQ succeeded in reaching a low of only 180.61. Atility to penetrate h.st we8k's hibh of 183.57 vlOuld be cmstruotive and indicate a nearby testing of the July highs. Mon;ay's market was encouraging, particularly in individual issues. This action, coupled with the ability to hold abo the Octocer 30th 10\7, strengthens our correction that the next move will be toward hiGher levels and a nearby penetration of the 1947 hiehs. However, in this tlarket one can be correct in diar.nosing the moves of the averages but still realize only mediocre price appreciation unless the right stocks are selected. Seldom has such extreme selectivity been witnessed. As mentioned in a recent 18tter, the technical patterns of individual issues show extreosly diverse patterns. A ;;rGat many issues, probably 50, have built up tremendous base patterns and h!ive either broken out of thse ranges on the upside or seem on the verge of so doing. iillother group, possibly 40 of the market, requires sor.te further backin,; t'nd filling cefors the pattern is ,complete and the nnge penetrated on the upside. A third group, probably less than 10, have formed little or no hase patterns and still indicate lower levels. We have tried,in our recom!Jended list of issues, to select the stocks in the first group. The tlajority of recommendations have recently reached new high territory. A fevi h&ve betn disappointing hut the list has been above averag-e. Three issues, Phelps Dodge, Rayonier nnd Sharon Steel, reached or bettered the year's hibhs. list. For purchase at this point, suggest the following from our recommended Alleghany, pfd. Atlas Corporation Celotex Colorndo Fuel General Cable Cities Ser,!ice Chrysler Doehler Jarvis Sharon Steel Youni.istovm Sheet & Tube Ohio Oil Wheeline Steel U.S. & Foreibn Securities Worthington Pump November 10, 1947 EDMUND W. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 182.21 47.59 64.25 Th. opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. labell and .r. not presented a. the opinions of Shields & Company.

Technical Market Action ThursdY6 Mnrket drifted slollly back to the 180-179 level. At the intra-day low of 179.60, the industrials Vlere b8low the 179.9; 1011 of Octoter 30, ar.d thus confirmed the dOlmtrend in the rail averar;e. Tne incustrial avercte has tuil t up on1;r a small C'.istriutional top at the October hibhs and this is also true of the mc.jority of individual i.ssues. Also, tne 179-175 ZOL8 is en area of heavy support. The technical pattern seems to indicate a further period of irrq,ularity with the possibility of a slow comdrift into the 179-177 rE.l16e. The rail f..vera!o, \7hich ree.chec1 an intra-day lovi of 46.49 on Thursl.ay, should meet support around 45 1/2-45. Durin/; this period, Vloule. acid to holdings of recommended issues during periods of softness. A numoer of such issues are noterJ. below. YoungstOlm Sheet & Tube was oriGinally recommenced for purchse in the (,2-60 buyinb zone. The stock recently broke out of its lon,; e.ccum1l1ation rfmgc in the 72- 54 area and reccld 0. high of 83. Our last n0.1Y5is sUi';Gestec thct 80-B3 arw would be a temporaI')' heitation paint. A small top patturn has been built up 1n the 80-83 area that suggests a dip to 77-75. A.lso the 73 top of the base area should dso furnish excellent support. Thursc' ;.ys low was 76 7/8. Tne long tern pattern on Y0Unl,stOl'.'n is excellllt. Earnir,.s for the iir.st nine months of the year totaled 11.61. Believe t.'lC issue in a buyin,., rande in the 77-'73 area. Sh2.f.lrock Oil & Gas as recolfuundecl for purch.se at 24 in June. For a ti!'le, the stock id little jlarketwise;. In the past feli c.ays, ho,ever, the stock has !'loved r.gainst the .n!crket. A 118\7 hitsh of 29 1/8 was roc-ched on Wodnesd.y anee Thursd.ys close f;as 29. T1e stock hcs nn sttrrctive technictcl j)attern with an ultir.mtE. objec- tive above 40. ViC)uld ald to holdinGs on any sell-off. J Sharon Steel vms ori,;inally added to our list ret 31. The stock rocently broke out of ' lo,g accumulation aree. and reluched a high of 40 5/8. ThurGdeys close was 35 1/2. The stock is a. volatile perfori18r, Cut its technicpl pattern is extremdy favorable. Earnings for the first nine f.lOnt's of 1947 tote.led 7.71. BelieVE the stock attractive on any ext0nsion of the prosent dip. Other issues that o.ppear attractive technice.lly on further dips, include Celot6x, Chrysler, Doehler JarviS, IlheE.ling Steel, Worthington Pump, Cit.ies Service, Pepsi-Cola, AlleGhany, Pi'('. end Ohio Oil. . EI1V!UND W. TABELL Nov8mber 13, 1947 SHIELDS & COMPANY Dow Jones Closil!& Incustrials Ralls 65-Stock 180.00 46.56 63.36 The opinions ezprened in this letter ere the personal interpretetion of charb by Mr. Edmund W. T.bell end ara not presented as the opinions of Shields & Company.

Technical Market Action Personal circumstances allow me to write but one paragraph dictated from home. 1\ 5.cates Consider Tuesday's market action extremely encourQginb' Believe a change in trend and a near-term testing of the July highs. Vc \ -'To-l-l. intents e.nd purposes, Mondc.y's low of 179.57 in the industricl , J average held at about the 179.93 low of October 30th. This double testing of the important 179-10 resistcnce area, followed by a drying up of liqUidation ruld renewed buying interest, is excellent tecmlical action. Ability to penetrate decisively th early November hiGh of 13.57 would be added confirmation. Advise purchase of previously recommended issues. EDIliUND W. TilBELL SHIELDS & COMPANY November 18, 1947 CloSings Dow-Jones Industrials DOVi-Jones Rails Dow-Jone s 65-Stock 181.71 47.78 64.20 1118 opinions ellpre…d in tilis letter are the personal interpretation of cherts by ….. r. Edmund W. Tebetl and are not presented as the opinions of Shields & Company.

Technical Market Action In yesterday's letter in which we listed a number of recommended issues in a major uptrend, there wes an unfortuncte error in transposition of columns. In copying from our letter of October 8th, containing a similar list, the closing prices of October 8th were listed under the column headed Origindly Recommended At and the originelly recommended prices were omitted. As these prices are importnnt in guuging issues that mey be behind the market, we (.re reprinting the letter with the correct figures. Plese disregerd the list contained in our letter of November 20th. REPRINT OF NOVEMBER 20th I.ETTER The majority of issues in our recomnended list are in a major uptrend of their own. These issues, unlike the general market aV6reges, have been able to penetrate their previous highs and have given individuel bull market signals. They were originally selected because their individual technical patterns showed sizeable accumulation bases and indicated substpntially higher levels over the months ahead. These patterns have in no wey been altered, in fact, they haVe been strengthened in many insteces. These issues heve been recommended over the past fourteen months. They are listt.d below togethr I.i th the last sale, original recor.tmendation 16vel and the apprOXir,lE.te long term objective as outlind by the technicr.l pattern. Obvioly, such advances will take considerable time to accomplish d will be interrupted by periods of hesitation end correction. …. B a r n s d a l l Bliss, E. w. Borg Warner Campbell, l..yant Chrysler – Cities Service Colorado Fuel & Iron Crown Cork & Seal Deere & Company Doebler, Jarvis Eagle Picher Elliott Company flintkote -GlilfOil -Houston Oil Interlake Iron Internetional Paper rnt.Minerals & Chern. Joy Manufacturing Mullins Menufacturing National Supply –Ohio Oil 'Oliver Corporation Pepsi Cola Phelps Dodge Rayonier – Seaboard Oil -Shamrocl Oil ShE.ron Steel '-Standard Oil of NJ. exas Pac.Coal & Oil Union Bag & Paper Union CE.rbide & Carbon Union Pacific United Aircraft U.S.& Foreign Sec. u. S. Pipe Westinghouse Air Brake Westinghouse Electric Wheeling Steel Youngstown Sheet & Tube Last ale 33 1/8 35 1/8 53 3/8 31 3/4 63 39 3/8 16 1/2 42 44 3/4 38 1/4 23 5/8 20 3/4 37 1/4 71 3/4 24 1/8 14 3/8 56 7/8 33 39 25 22 1/4 27 3/8 25 5/8 26- 48 30 7/8 343/4 29 3/4 36 1/2 76 1/8 41 3/4 34 1/8 105 1/2 155 1/4 23 1/4 21 3/4 44 3/4 35 5/8 28 5/8 50 1/8 78 1/2 Originally Recommended At 2l 20 – 18 44 24 – 22 40 – 42 28 12 – 10 35 – 33 38 24 19 19 1/2 32 – 30 60 17 – 15 12 – 10 51 1/4 26 – 24 37 1/4 19 3/4 15 – 13 23 – 2l 23 – 21 261/4 38 1/4 19 5/8 25 – 23 24 31 66 5/8 29 28 5/8 104 1/2 136 1/2 20 1/8 18 – 16 38 – 35 27 – 25 23 – 21 43 1/2 62 – 60 Approximate Long Term Objective 41 – 45 52 – 55 84 – 87 46 – 49) 88– 90, 62 – 65 31 60 – 63 82 69 – 75 37 – 39 46 – 50 57 – 60 86 – 89 40 21 84 – 86 r 60 – 62 64 J6 – 39 36 38 – 41 49 55 85 – 87 43 – 45 42 – 49 48 – 50 64 – 68 90 -100 59 67 – 69 150 196 , 32 – 37 70 – 75 54 – 58 40 – 46 95 140 November 21, 1947 EDMUND W. TABELL SHIELDS & COMPANY The opini'O' expressed in fhis letter ere the persofto!ll interpretation of chart, by Mr. Edmund W. label! and are not prosented LIS the opinions of Shields & Compny. -', i ! – – – —

Technical Market Action The market continues to be swayed by conflicting forces and cross currents, While some issues are reaching new high t.errit.ory on news of extra dividends and increased earnings, other issues are making new lows on tax loss selling and less favorable prospects. Such action is typical of yeal'-end markets and may continue somewhat longer. Concentration on jndividu&l issues rather than the market as a whole continues to be a necessary course of procedure in this extremely selective market. With the exception of a handful of issues, most of the stocks in our recommended list continue to show excellent market nction and indicate higher levels. The few stocks showing below average action are in the rail and utility groups, Individual rail issues show extremely diverse technicnl patterns. For example, Union Pacific, one of the four rail stocks in our recommended list., recently reached a neVi high while Chicago &NorthV/estern, another recommended issue, made a new low. Illinois Central and Seaboard Airline continue to hold about midway in their recent range. Would continue to hold all but Chicago & Northwestern which may continue its lethargiC action due to further tax selling. The utility section of the list has also been hit by tax selling and changing of proposed plans of dissolution. Of the four utility issues in our recommended list, American Water Works and lectric Potier & Light have sho\'m relatively favorable action and are holding fairly close to the year's highs. Retention is adVised. On the other hand, American Power & Lie'. and Standard Gas 4 pfd. are showing relatively unfavorable action. They may be held back by further tax selling. Switching to more attractive issues in our list is recommended. Radio Corporation has been showing good techni.cal action. Af,ter reaching a high of 19 3/8 in late 1945, Radio built up a distributional pattern in early 1946 in the 19-17 area. The top indicated a decline to the 1077 area. A low of 9 was reached in October 1946 and a low of 7 1/2 in May, 1947. F'or the last fourteen months, the stock has been fluctuating in approximately the 11-8 area. A substantial base pattern has been built up that would indicate, on an upside penetration, a return to around the 1946 high of 19. Tuesday's close was 10. Advise purchase of the issue which is being added to our recommended list. Contin\le to advise purchase of previously recommended issues during periods of market irregularity. Particularly like recent market action of E.W.Bliss, Colorado Fuel & Iron, Deere & Co., Doeh18r-Jarvjs, Houston Oil, Interlake Iron, International Minerals & Chemical, Mullins Manufacturing, lIational Supply, Ohio Oil, Oliver Corp., Rayonier, Shamrock Oil, Sharon Steel, U.S.Pipe, Wheeling Steel and Youngstown Sheet & Tube. November 25, 1947 EDMUND VI. TABELL SHIELDS & COMPANY ,, – , Closings Dow–Jones Industrials Dow–Jones Rails Dow-Jones 65-Stock 181.35 48.25 63.90 Th. opinions pressed in this l.tter are the personal interpretation of cherts by .r.Mr. Edmu6d W. r.. b.1I end not presented as the opinions of Shields & Company. , / — —– —- , Technical Market Action This letter has consistently stressed tl10 points since the decline of September 1946. The first lias that the decline fron the 1946 high of 213 in the industrial average would halt in the 160-170 area and the second, that the ensuing rise, after a buildup of an accur.lulation area, would be extremely selective and would fel'.ture, in the main, the heavy industry shares. Nothing has happened in the subsequent fifteen months to alter that . opn10n. The rnarkAt reached a low of 161 both in Octoher, 1946,aud May 1947 aDd the 160-170 area has been entered on numerous occasions. A large trading range has been formed in, roughly, the 160-185 arsa which, in my opinion, is an accur.lulation base for an extended rise. This rise hus a primary objective of 210-215 to be followed by substantially higher levels. The technical action of indiVidual issues has been somewhat different with some groups already having formed large accumulation areas while others are still in the process of forming such base areas and a relative few still indicate slight.ly lower levels before starting the process of building an accunulation area. The most favorable patterns, broadly speaking, are to be found in the stels, oils, farm implements, building, machinery , automotive and chemical groups. The issues in the steel and iron group have formations that suggest the largest percentege price rise. kt present lvels, th steels lire selling at extremely low price to earnings ratios. A comparison of present levels and the 1937 highs is quite instructive, as noted in the table, below. The improvement iIll fiean- cl.. condition, as shovm by working capital, is also' rather illuminating. The figures below are in millions of dollars. The 1947 figure is actually that of December 31, 1946. The earnitlgs for 1947 are un estimat based on actuel earnings for the first nine months. 19 37 High Earnn'gs tal American Rollings Mills 45 Bethlehem Steel 106 Interlake Iron 28 l/ Republic Steel Sharon Steel 47 42 1/2 U.S.Steel 127 Wheeling Steel 65 Youngstown Sheet 101 7/8 2.55. 7.64 1.20 1.74 2.83 8.01 4.14 6.79 6.0 121.9 12. 8 76.5 5.0 36;!.4 33.4 57.2 Approx. Prce 34 98 14 27 35 75 45 75 1947 Earnings 6.50 15.50 2.36 5.75 10.00 12.75 14.00 13.00 8aoprE1 tal 22.1 308.1 20.0 128.4 18.2 629.0 48.3 109.8 If these issues were selling at the same price to earnings rat,1o as pre- vailed in 1937, AII'erican Rolling Mills would have sold at a 1947 high of no rather than 37 1/2, Eethleherc w01.1ld have sold at c. high of 20() rather than 101 7/0, Inter- laKe Iion WQ1;l.ld bav, f,o d at a hh. of 5'4 1'atJJer t..hP!) J. l/tt 'P.r!J'..blj ( S-'eel. wr,vlrl J ha\T sld at a higrJ. of .49 1'cttr02.t t..ho.n ;() 7/ SrH11'orl 't(el o1lJ.ld hJ.ve i.)J..d It a high of 150 rather than 40 5/8, Wheeling Steel Vlould have sold at a hi,h of 210 rather thJl 53 1/3, and Youngstown would heve sold at a high of 182 rp.ther than 83. The obvious anS\7er to this reasoninb is that the 1937 ap;raisal was grossly over-optimistic as earnings and prices fell sharply in 1938. It nay be pOSsible, however, trt 1947 sentiment is, on the other hand, orossly over-pessimistiC. Market psychology usually goes to extremes. In 1937, th expectction Viae higher prices end earnings. It proved to be wrong. In 1947, the failure of prices to follow the trend of earnings end dividends is evidently based on ,the expectation that present earnings are temporary and wili shortly be not only moderately lower, but sharply lower. This expectation may also prove to be wrong. If it is, the extremely pessimistic public sentiment could be replaced an equally extreme opti- mism, even in the face of a moderate decline in earnings. The technical pattern indicates, as it did in similar circumstances in 1942, that the market is evaluating present earnings at too Iowa price ratio. Thre aG 6 steel,issues in our recommended list. They are Colorado Fuel & Iron, Interlake Iron,Jones & Laughlin, Sharon Steel, Wheeling Steel and Younf'stown Sheet & 7ube. A seventh issue, also in our list, U.S.Pipe & Foundry, mi(ht also be included in this broad classification. Jones & Laughlin has been the least satis- factory performer in the group. le it indicates an uptrend, greater price appreciation should be obtained in the other issues in the-list. Suggest taking the few points profit available in Jones & Laughlin and sm tching into Shc.ron Steel which is selling et around the same price. These stocks were selected because their technical patterns suggested the largest possible percentage price appreCiation in a group that, as a whole, indicate considerably higher prices. The recent softness in the general mark8t has brought these issues back to a buying range. Their purchase is suggested around current levels. The opinions eXpressed in this letter 8re the mSR9lJninfP.rpremtt charb by Mr. Edmund W. label1 and are not presented aWifJ6trtfonV t)f -5y…. Company.