Tabell’s Market Letter – March 17, 1948

Technical Market Action Both the industrial p.nd rail averages, at Tuesday's lows of 165.03 and 48.83, succeeded in hol(1inG above the February intra-clay lows of 164.07 and 47.48. On hednesday, the oarket turned stronger and both averages closed higher with the industrial overage up 85 cents on the day and the rails 56 cents higher. /A co;nparison of Tuesday's decline with th.t of February lOth and 11th brings SOlJe ra'vher interesting facts to light. On February lOth, the Inarket sold off sh;.rply. The industrial average declined ;)4.17 and the rails were down (/2.00. Volune totalled 1,460,000 shares. The aV8Tags reached intra-day lows of 165.2.6 and 48.04 and 181 issues rf'ached nel7 10\vs. The decline continued in the first hour of February 11th E.nd the eVerages n!lched intra-day lov!s of 164.07 and 47.48 ;.nd 204 issues reached nelV 1m,s. The narket rallied later in the dny End closed a few cents higher. Total volurle for February 11th was 1,490,000 shares. On the other hand, the decline of Tuesuay, i,larch 16th, shows a definite lessening of selling pressur8. The volurle was lESS than a rlillion shares at e. total of 940,000 shares for the day. The industrials declined ,2.23 and the rails t1.21. Th intra-cay 10ViS vrre 165.03 and 48.83. Only 161 issues reached nel lov;s. ,;edncsday's intra-da;)' lows Vlere 165.03 and 48.99 and on the advance, the volulJe of trading, at 930,000 shares, vms 8.1nost equal to that of the previous day' ,; decline. In cddition, 28 issues ;lade new hirhs for the year against 84 new 10Vis. r,hile the eVidence is far fron conclusive, it points to a graduc.l exhaustion of selling pressure. In fact, the sellino; pressure h'28 been gradually declininB since Fcbruar'J 11th. The irregularity of the past rlonth has been ccused by lack of buyinG inter8st rather thr.n selling pressure./ However, as I've nentioned before, it S8erJS nore advisable to follow the patterns of individual issues at this stage-of the narket rather than the m8aninbless neanderings of the averaes in this last phase of the accunulation pr.ttern. Individual issues continue to show excellent r.ction as witness Electric Power & Lil-ht, one of our recorulended iSSUeS th,t reached Go new high for the YCClr. Pure Oil, cJlother rccorl!1ended issue also showed independent strength as did Elliot Conpany on the New Yor\( Curb. Continue to like thb action of recorlmended rails. Also, in the 10Vier priped group, Colunbia Gas aDd Radio Corporation continue to 3ho.l improved technical action. March 17, 1948 ED1iUND II. Tf,BELL SHIELDS & COMPANY ClOSings Dow-Jones Industrials Dow-Jones Rails DOVi-Jonl'S 65-Stock 166.24 49.46 60.49 The opinions expressed In thiS leiter are the personal inlerpre'ahon of charts by Mr. Edmund W label! and are not presented as Ihe opinions of Shields & Company.