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Technical Market Action Last week Standard & Poor's issued their first preliminc.ry estir.late of 1948 earnings on a number of rails. The estites for the rail issues in our recom,nended list are given belo. – Atchison,Topeka & Santa Fe Chicago & North \Iestern Denver & Rio Grande Western Gulf, Mobile & Ohio Illinois Central (Syst) Kansas City. Southern Northern Pacific St. Louis-San Francisco (Syst) Seaboard Air Line Southern Pacific (Syst) Union PacifiC Last Sale 89 1/2 15 1/4 . 17 1/2 15 3/4 28 5/8 24 5/8 18 1/2 9 1/4 15 47 1/4 158 Net Per Common Share E-1948 .t.41 21.00 3.85 9.50 3.50 14.50 11.00 6.50 3.75 4.00 11.50 28.00 17.11 0.50 7.05 2.66 10.25 9.75 5.40 2.25 2.96 8.86 22.70 There nre no estimates given on ftleehany CorporQtion, preferred and common, which are also in our reconmended list. The mile continue their better than average action. Beli eve they vlill be the leaders on any, extension of the rise. A number of other issues iIl our recorlnended list are also sho17ing better than markGt action. Included in this grouping ure Arkansas Natural Gas A, ColUl'lbia Gas, Electric Pover & Li ght and Shalurock Oil & Gas in thE oob.llrt.l gas group, Dome Mines in the gold group and Consolidated Vultee,. Sperry Corporc.tion and United Aircraft in the aViation group. WEstinghoTlBe Electric scens to be 'deeting support and Radio Corporation also ppearsrto be under accuwulation. Tuesday's market continued the decline of the previous day and the industrial average closed 95 cents lower at 166.76 and the rails were dorm 48 cents ct 49.00. Most of the decline occurred in the first hour and prices 118rerelatively firn for the balance of t.he day. Pessi13ism and gloon are once 'Jore rife in the Street but considering the nature of the news and the dire forecasts by radio cOlJlr.lentators, the r.larket is not acting badly. Volune continues snall and declines are due to lack of buying interest rather than selling pressure. At tuesday's lows of 166.04 and 48.78, both averages \ere above the February lith lo'/ls of 164.07 and 47.48. Thus, stocks are still holding in their narrow range of the past month. Last vleek the rails were able to penetrate their Febru.ry 17th high of 49.37 to 50.37, but the industrials met reSistance 'at the equiv8ent high of 169.23 and were able to penetrate it only by pennies to reach 169.28. Until 169.28 and 50.37 are both decisively penetrated on the upside or until 164.07 and 47.48 are both decisively penetrated on the downSide, see no indication of an impot move. I continue to believe that the long trading range of the last eighteen months is an area of accUllUl8.tion with stocl(s p8.ssing froQ weaker into stronger har,ds. This is regardless of the near terQ action of the market. As I predicted in my beginning of the year forecast, I believe the lows for the yecr will be made in the first four months. lie may already have seen them. In the ncantiTle, advise forgetting about the neaning1ess near term fluctuations of the Tlarket and concentrate on acquiring individual issues when they are available at favorable price levels/ EDMUND VI. TABELL March 9, 1948 SHIELDS & COMPANY Closings Dow-Jones Industrials DoV/-Jones Rails Dow-Jones 65-Stock 166.76 49.00 60.45 ( \, ( , -1 The opinions expressed in Ihis letter are the personal Interpretation of charts by Mr. Edmund W. TabeU and are nol presented as the opiniolU of Shields & Company, ..