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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.