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.

Technical Market Action 'The issues in the oil group were among the first to penetrate the upside of their trading ranges and indicate favorable technical patterns. Like the steels, they are selling at price to earnings ratios' that seem quite out of line when compared with 1937 prices d earnings. There are nine oil issues in our recoended list. They are tabulated below together with 1937 highs and earnings and the esti- mated earnings for 1947 based on earnings for the first nine months. Barnsdall Cities Service Gulf Oil Houston Oil Ohio Oil Pure Oil Seaboard Oil Standard Oil of B.S. Texas Pac. Coal & Oil 19'27 High Earnings 35 1/4 1.26 62 1/2 17 5/s 227/8 24 3/8 i 1/8 165/S 3.51 1.01 1.31 2.15 1.97 5.64 loll 19.!I1 AEErox.Price Estimated Earns. 32 3.80 36 8.00 70 9.35 26 3.25 27 4.40 24 4.S0 34 4.75 76 10.50 42. 4.50 As we noted in our recent letter on the steels, if the optomistic appraisal of earninEs that prevailed in 1937 were translated into present earnings it would mean fantastically higher prices. For example, on the basis of the price to earnings ratio at the 1937 highs, the highs for 1947 would have been as follows Barnsdall Gulf Oil Houston Oil Ohio Oil Pure Oil Seaboard Oil Standard Oil of N.J. Texas Pacific Coal & Oil Actual 1947 High 34 1/4 74 3/B 26 1/2 27 3/4 28 3/4 35 3/8 SO 44 3/4 High on Basis 19.37 PiE 64 166 55 77 53 106 141 67 Obviously, these prices appear ridiculous and are not to be interpreted as a forecast. The purpose of the projection i6 simply to contrast the extreme optimism of the market ps,ychology in 1937 as compared with the pessimism of today. The optimism of 1937 proved to be unfounded. It is possible, is it not, that maybe the gloom of today is also just a bit unwarranted and that earnings in 1948, even if moderately lower, may be valued somewhat more realistically than they are at the moment. If market psychology changes to that extent, it should result in sharply higher stock prices. From a technical viewpoint, all of the nine issues listed above appear headed for higher price levels. Would uso periods of market weakness'to add to holdingst Wednesday's intra-day lows of 179.18 and 47.31, the market was testing ! last Friday's lows of 178.87 and 46.99. The industrial average, last Friday, pene- trated the previous November 17th low of 179.57 but the rails held above their November 14th low of 46.32. This ability of the rail average to hold above a previous low after a downside penetration the industrials is rather interesting action. Since early 1946, the rails have been the leaders on the downside. ThiS, I believe, is the first time in a long while that the rails have shown better market action than the industrials. A continuation of this action might prove SignificantAbility of both averages to hold above last week's lows would be distinctly encouraging for the near term. A joint penetration on the downSide Vlould indicate a continuance of the 'slow down drift under the influence of tax' selling and switching. However, the leaders have built up only minor distribution areas and there is good support in the 177-175 area – just bal.ow our previously indi cated 178-180 'Support area. . December 3, 1947 EDMUNDW. TABELL SHIELDS & COMPANY Closings DOVi-Jones Industrials Dow-Jones Rails DOW-Jones 65-stock 179.63 47.49 63.15 The opinhnts expressed in thi, letter BAlI the personal interpretation of charts by Mr. E4mund W. TRen and are not presented as the opinions of Shields Company,

Technical Market Action The market broke sharplY on Friday to reach a low of 175.46 on the industrials and 46.00 on the rails. Volume increased, particularly in the fourth hour when the tape was several minutes late. Total volume for the day was 1,290,000 shares. The sell-off in the industrial average was accentuated by a 7 1/4 point drop in Allied Chemical which declared an extra dividend but failed to split the stock as ruQored. Friday's sell-off appeared to have soe of the characteristics of a selling climax. While the comeback fro the lows was not particularly impressive, several groups that have hitherto been weak seemed to meet good support. This was particularly true in the rails, utilities and some of the merchandising issues. While the decline was sharp, the industrials held in the 177-175 eupport range mentioned in our preVious letter. Our recent comments on indiVidual issues have centered on issues that have been acting better than the market. These stocks, even at present prices, are conSiderably above the originally recoended prices and the lows of the year and are not targets for tax selling. It might be appropriate at the moment to draw attention to a number of issues that have been heavily depressed by tax selling but appear to be at or near their downside objectives as measured by the broad distribution areas of early 1946. As tax selling abates later in thA month these issues could have a good technical rebound in the process of building up their base patterns. The list follows L' Alle gheny Ludlum American Cyanamid Atlas Corporation Consolidated Vultee Eastern Air Lines Evans Products Fansteel General Railway Signal Pepsi-Cola Seaboard Airline Twentieth Century FOX 1946 High 61 1/8 63 3/4 34 3/8 33 5/8 33 3/8 33 3/4 42 JJ3 40 1/2 37 3/4 63 7/8 t947 ' liigh 48 1/2 54 1/2 26 1/2 17 7/8 24 1/4 24 1/2 22 3/4 31 1/2 34 LIs 24 5/8 38 3/4 1947 b!2!I…. 27 3/4 39 21 5/8 101/2 16 18 12 19 22 11 1/4 21 5/8 Last Sale 28 39 1/2 22 ' 12 161/4 18 5/S 12 21 22 1/2 13 1/2 22 While these issues m be SUbJect to some further tax selling as the month goes on, would take advantage of any weakness to add to the list. December 5, 1947 ElXIIUND W. TABELL Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock SHIELDS &, COMPANY 176.10 46.28 61.92 The opinionl flxpreued 1n this letter are the personal interpretation of cham by Mr. Edmund W. Tabelland IIIr. not presented as the opinions of Shield. & Company.

Technical Market Action -. How much risk is involved in holcing stocks at present price levels Obviously, there is always risk involved in holding equity securities but is there an inordinate anount of risk at the present time In other worG.s, what are the possibilities of a severe decline of, let us say, irty-five to fifty points from present levels Those inclined to the bearish side of the picture cite the following technical factors – (1) Earnings are high and most likely at or near 11 peak due to narrowing profit margins, completion of inventory buying, etc., etc., etc. Stocks should be sold when earnings are high as witness 1929 and 1937. (2) Stock prices are historically hibh. They are selling right now at the highest price level in the past fifteen years with the brief exception of 1937. (3) Bond prices have started to decline. A decline in bond prices occurred before the market breaks 'of 1929 and 1937. These appear to be an ominous array of facts. Let us analyze each of them – (1) Earnings are high and may be at or near a peak just as they were in 1929 and 1937. That could be true. But that is about the only point of similarity ,with 1929 and 1937. In 1929 and 1937 stocks Vlere selling, in the najority of jnstances at 15 to 20 times earnings. Today even highgrade stocks are selling at five to eight times earnings and, in the case of more speculative issues, at three to four times earnings. In 1929 and 1937 everything vms optimilltic. Today, there is extreme caution and pessimism. In 1929 and 1937, there Were high speculative positions built up. Stocks were held on slim margins and even a slight drop in prices touched off a wave of forced liquidation. Today th6re is little or nothing to liquidate in the stock market. Mrgin positions are negligible and amply protected and most houses haVE large free credit balances. In fact, the market seems to be in a position more like 1942 than 1929 and 1937. In 191.2 stocks Vlere also selling at extremely low price to earnings ratios and pessimism was rife. From 1942 to 1945 earnings declined in many companies, yet prices advanced. (2) The market is hibh historically. That is true. But only on the basis of a 1939 dollar. Almost every comr,lodity hes advanced 75 to 150 in price since 1939. The stock market hasn't. The dollar today has a purchasing power of N only 50 to 60 of the 1939 dollar.OJ;) the basis of a 50 cent-60 cent dollar, the market is selling at 88-115 or around not only the 1942 lows, but the lows of mid1933-1935. To expect a decline to 140-125 in today's prices or an equivalent of 70-63 on today's dollar value, seems just a'little bit out of line witil the facts. The only time that level was reached in the last twenty-five years was in the depths of the 1932 depression. (3) Bond prices have started a decline just as they did prior to 1929 and 1937. However, the situation today is quite different. In 1929, many stocks were yielding less than AAA bonds, and in 1937, were yieldin only a little more. Today, even after the decline of the last month in the bond market, the spread in yield between stocks and bonds is the greatest, with the possible exception of 1942, in twenty-five years. / The market has held in a relatively narrow trading rangE between, roughly 160 and 187 for over fifteen months. !any individual issues have broken out of their own individunl trading ranges t.o indicate up trenrls . In the breat maj ori ty of instances, stocks have already reached their downside objectives as outlined by the early 1946 distributional tops. It would appear that the probabilities indicte that the 160-187 range is an accumulation area. Since September 1946, this letter has advocated purChases in the 160-170 buying area. This area has been entered on numerous occasions and there is no reason that, before the advance starts, it may 'not be entered again. In fact, if the 177-175 support area of the present market is penetrated on the downSide, would expect a dip to the 171-168 area. This mayor may not occur. However, Vlould consider such a dip, if it occurs, as a buying opportunity. It would enlarge the base pattern and indicate even higher levels than the possible 2l02l5 noVi indicated as the intermediate objective if the July hiehs are penetrated! Monday's action was favorable. The averages pulled away frora the 174.02 low of September to close at 176.71, up 97 cents on the day. Ability to hold above the September 10Vi wlld indicate, after further backing and fillin5,the possibility of another testing of recent highs. EDMUND W. TABELL December 8 1947 The opiniON …r.ed In this leHer er. 'h. ,!flS'.&,rqhjljJ!,\eIJ's by , Mr. Edmund W. label! and are not presented arflie-C)pliilons Of lietal'mp.an1. –

I———————————- Technical Market Action In the rise from the low of early 1942 to the high of mid-1946, the roils led the market. That is, after each technical correction or consolidntion, the advance was resumed under the leadership of the rails. One of the first danger signs in 1946 was the inability of the rail average to penetrate the February high after the industrials ,had pushed through py over five points. From May 1946, the rails have been the weaker group. The rail averaie,from that point on,has led each decline. While the October, 1946 low in the industrial average held in the May 1947 decline, th rail average made a new low. On each advance, the rails were laggard. On each decline, they were the first to sell off and penetrate previous support levels. Since mo8mber,-bowever, there has been evidence of a possible change in this laggcrd action of the rails. The rail average reached a low of 46.32 on November 14th and the industrials reached a comparable low of 179.57 on November 17th. The subsequent rally carried the rail average to 49.28 and the industrials to 183.97. Since that time -the industrials decisively penetrated the November low to reach 175.44 on December 6th. The rail average, on the other hand, held at 46.00, just a fraction below the November low of 46.32. At Weesday's high of 48.21, the rail average was only about a point below the last rally high of 49.28. Ability to penetrate that figure,on volume, would be a very constructive sign and could possibly signal a very important turn in the market. There are four rail issues in our recoonended list. They are Alleghany, pfd. (37 7/8), Illinois Central (261/8), Seaboard Air Line (14) and Union Pacific (149). Two of the issues, Illinois Central and Union PacifiC have shown excellent action and are considerably above originally recomended levels. Alleghany, pfd., a recent recomnendation, is two or three points below our orginal recoonendation and Seaboard Air Line is quite a bit lower. Believe all four are suitable for purchase around present levels. Even more than in other groups, selection is of prie importance in the rail group. The technical patterns are quite diverse. As a general statement would be inclined to avoid the eastern roads. Some, such as New York Central and Penns.ylvania, which'have been targets for tax selling, might have a quick rebound when tax selling abates, but their longer term pattern is not favorable. '…… ……… In addition to the four iSSues mentioned above, like the technical patterns of Atchison, Topeka & Santa Fe (841/4), Gulf,Moblle & Ohio (123/8), Kansas City Southern (23 7/8), Northern Pacific (19 )/B) and Southern Pacific (44 )/4). ,/ The industrial average has so far succeeded in holdin above the September low of 174.02 and indiVidual issues, particularly the Oils, have moved into high ground. Year-end markets are noted for their irregularity and cross currents. Would use any weakness in the next two weeks to add to holdings. EDMUND W. TABELL' December 11, 1947 Closings Dow..Jones Industrials Dow…Jones Rails Dow…Jones 65-Stock SHIELDS & COMPANY 177.32 47.66 62.67 The opinion. expressed in this fetter ere the personal interpretation of cherts by Mr. Edmund W. Tabell and iIIf. not presented os the opinions of Shields & Company.

Technical Market Action The rails continue t.heir excellent technical action and, at Monday's hibh of 50.15, had decisively penetrated the November hibh of 49.28. This is extrenely encouraging fron 0. tecr4lical point of view and indicates the probability of a nearby testing of the July hieh of 51.92. To SO1e students of the Dow Theory, a penetration of that level would indicate a new bull market signal because, whlle the rnils had reached a higher level of 53.65 in February, the average declined to a new low of 40.43 in May. Since that time, it rallied back to 51. 92 in July and the recent decline held at 46.00. Ability to relly above 51.92 would, therefore, indicate e new r.lajor uptrend. The industrial average Signalled a major uptrend in July when the average penetrated the February high to reach 187.66. Confir!astion of this uptrend by the rail average would complete the patte;rn of a new bull narket. However, other Dol'I Theory schools of thought vloulJ possibly require a penetration of the July high of 187.66 in the industrials as well as the February high of 5J.6 in the rails. All of this is possibly interesting but only of acadenic importo.nce. There have been a large number of individual issues that huve been in bull narkets of their ovm for the past year. The oils have been an outstandin,; example of this type of action. Ther are nil.e oil issues in our recomended list. They are tabulated below with their originally recom;aended level and approxinate longer tenil price objective as determined by their individual technical patterns. Originally Last . . Recommended At Sale Ba!'llsdall Cities Service Gulf Oil Houston Oil Ohio Oil Pure Oil Seaboard Oil Standard Oil of N.J. Texas Pacific Coal & Oil 21 28 60 17-15 23-21 23 7/8 25-23 66 5/8 29 37 1/2 41 – 45 38 1/4 62 65 71 3/4 86 – 89 27 3/8 40 31 1/8 ;8 -41 27 36 – 42 37 1/2 42- 49 76J1-4 44 1/ 8 – – .. 9509– -100 Several, mostly producing issues, made new highs for the year on Monday. In some instances these issues have reached a higher price level than at the bull market top of 1946. It l'Iill be noted also that some isSues have moved ahead faster than others and are closer to their ultimate price objectives. The industrial average, at Monday's hi,h of 180.56, was in the lower part of the 180-185 range in which the market held for most of October and Nover.lber. This area may furnish some upside resisGance and would expect a consolidation and a shifting and rotatint; of strength as the narl,et attempts to break throubh this resistance. . Continue to advise purchase of reco;amended issues during periods of market irre5ularity. Believe that eventually both averages will be penetrated upside. If this occurs, would expect 210-215 and 65-70 to be the ultimate intermediate term objectives. However, Vlould continue to concentrate on the technical patterns of individual issues rather than the averages. EDMUND W. TABELL December 15, 1947 SHIELDS & COMPhNY byThe opinions exptened in hi, letter ere the penanal interpretation of chert. Mr. Edmund W. Tab1I end ere not presented as the opinions of Shields & Company. \

Technical Market Action The ra.ils continued their leadership on Wednesday and advanced 1.18 to close at 50.50. The industrials gained only 37 cents. At the days high of 50.63, the rails were less than a point and a half below the July high of 51.95. As nentioned in a recent letter, this is very encouraging technical action. It is the first tir.18 since early 1946 that the rails, the leaders of the 1942-1946 advance, have lead un advnce in the IJP.rket. Frotrl February 1946 to early this IJonth, they have been the leaders on each decline. Listed below is our conplete list of recot1.111ended issues. These issues have been advised for purchase c.t various ti;,Jes fron Septetrlber 1946 to date. A great Dany have been recoIllfJended during the nunerous descents into our lonf, advised 160-170 buying rang'. Others have been recomr.Iended as recently as the past ten days as possible beneficiaries of the abatefJent of tax selling. Also listed below are the 1946 highs for each issue. It ll be noted that in nutrlerous instces several of our recomended issues are now selling higher than their 1946 hiehs while the industrial average is 33 pOints lOVier. We expect a great trlany trlore issues to reach levels above their 1946 highs. Others, obviously will not reach thes levels. Lack of space precludes giving the indicated technical price objective of each issue. These will be given in subsequent letters. 'Adans Express Allegheny, pfd. Allegheny LudlutrJ Amer. Cyanami41 luner. WaterWorks Atchison, Top Atlas Corp Barnsdall Oil Bliss (E.17.) Borg Warner Campbell Wyant Celotex Chrysler Cities Service Colorado Fuel Consolo Vul tee Crovm Cork & Seal Deere & Co Doehler Jarvis Eagle Picher Eastern AirLines Elec. Pro & Lt. Elliott Evans Prod Fansteel Flintkote Foster Wheeler General Cable General Motors General Rwy. Gulf Mobile Gulf Oil Houdaille Hershey Houston Oil IllinoiS Central Interlake Iron Last Sale 17 41 30 3/8 39 1/4 16 1/.4 87 3'/4 22 1/4 37 31 1/4 54 30 26 1/2 63 38 15 1/2 13 44 1/4 44 3/8 37 21 5/8 17 7/8 17 3/8 18 3/4 20 12 7/8 36 30 3/4 12 1/4 57 3/8 25 13 3/4 72 1/2 17 1/2 27 1/4 28 1/4 13 7/8 1946 lWh Last Sale 24 3/4 D1ternational Paper 54 7/8 69 1/4 Inter.Minerals 32 3/4 61 1/8 Joy Manufacturing 39 3/4 63 3/4 Kansas City So. 27 1/4 28 3/4 Mullins Mfg. 25 121 Murray Corp 161/4 34 3/8 National Supply 22 5/8 31 Northern PacifiC 2l 3/4 33 1/4 Ohio Oil 30 7/8 61 3/4 Oliver Corp 26 5/8 40 3/8 38 1/8 Pepsi Cola Phelps odge 24 1/2 48 1/8 70 1/2 adj.Pure Oil 27 41 7/8 Rr.dio Corp 9 5/8 23 3/4 Rayonier 29 7/8 33 5/8 Revere Copper 19 1/4 62 Schenley 33 3/8 58 1/2 Seaboard Oil 38 1/4 37 7/8 Shanrock Oil 29 3/4 30 1/8 Sharon Steel 35 1/4 33 3/8 adj. Siml'lons . 341/4 29 1/2 Southern Pacific 47 1/2 39 1/2 Standard Oil N.J. 77 33 3/4 Texas Pac. Coal 45 42 adj. Twentieth-Cent.Fox 22 3/4 46 49 7/8 1/2 Union Bag Union Carbide 33 1/4 102 3/4 16 3/8 Union Pacific 153 80 3/8 48 United Aircraft U. s. & Foreign 24 1/8 8 1/4 39 1/4 U. S.Pipe 44 78 Westinghouse Air B. 37 1/2 28 3/8 WestinghoBse Elec. 29 3/4 30 Wneeling Steel 46 45 1/2 Worthington PutrJp 62 20 1/4 Youngston Sheet 763/4 1946 ll.i.gh 55 1/2 45 34 40 1/4 22 1/4 22 25 36 29 5/8 36 40 1/2 48 28 7/8 19 33 31 3/4 100 39 1/2 32 1/2 40 3/8 56 7/8 70 78 3/4 32 5/8 63 7/8 39 125 168 1/2 37 3/8 32 1/2 60 1/4 41 5/8 39 3/4 62 1/2 74 83 7/8 Foster Wheeler is a neVi addition to the list. December 17, 1947 EDMUND IV. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials DOVi-Jones Rails Dow-Jones 65-Stock 179.81 50.50 64.11 The opinions expressed In this leHer are the personal inlMpreleilon of charts by Mr. Edmund W. Yabell and are not presented as the opinions of Shields & Company. . ..,.—.-