Tabell’s Market Letter – April 20, 1948

Technical Market Action Tho narlot oontinues its attol.lpt to ,onetrate the upside resistance- in the 179-181 rea, A high of 181.87 was reached on Tuesday. For the last four trading days the narket has held in a two point range with a high of 181.87 and a 10lV of 179.90. This ooncentrated turnover 1n a narrow range obviously indicates that the narket is running into strollg resi'stance. Equally obious, it indicates that there is a etrong denand for stocks as witness the fact that a considerble volume of stock has been taken on only slight price concessions, IThether the market penetrates the upside resistance inmediately, or backs dmn s1ightly before so doing, is of minor significance. The nc.in trend is indicElted IlS upward, In trqding accounts, would buy on slight technical dips. If 182 is reached before a dip, would consider suoh on event as a strong upside signal. I am re-listing belm7 the thirty stocks listed as outstanding purchases in my letter of February 11th. llost of these issues hElve Shown better action thnn the 1larket. Addressograph Bigelow Sanford Bliss, E.W. Borg Warner Chio.Uorth Western Columbia Gas Doehler JElrvis EIec.Power & Lt. Elliot COl'lpany Fnnsteel Flintkote Gulf, llobile & Ohio Hewitt-Robbins Illinois Central Industrial Rilyon App roxinnte Recent App roxino.te Price Feb 11 Price Price Feb,ll Z9 Inter .Nin & Chom. 25 56 63 Kansas City So, 24 24 28 lie st EI Hachine 38 44 52 l!ontgonery Ward 49 15 17 111ltional Supply 19 10 12 lTe York Air Brake 36 30 35 Phelps Dodge 41 13 19 Radio Corp. or ler 8 15 21 Seuboard Airlino 14 11 14 Sharon Steel 30 31 37 Southern Pacifio 44 13 17 Squilre D 15 21 25 U.S.& Foreign 17 28 33 Wheeling Steel 39 39 46 Youngstown S & T 67 Reoent Price 31 30 40 58 23 40 55 10 18 36 55 21 23 44 78 These issues havo nlrendy shown oonsiderable price appreciation but considerably higher price objectives nre indionted in event of nn upside penetration of the long nineteen-nonth trading range. So rar the leaders of the advanoe havo bean the bettor known stocks. At this time, it would not be suprisl.ng if sono of the secondary issues and now groups c into the picture. Those issues ho.ve dono little marketwiso. Would consider BElltimore & Ohio (12 5/8), Certain-teod (16 3/4), St Louis-San Francisco (10 1/4), Chicago l1orthwost (16 3/4), Rqdio Coproation (10 1/2), Seaboqrd Air' Line (17 5/6). as issues in this category. EDHUllD VI. TABELL April 20, 1948 SHIELDS & CClIPllllY .1Thill tv( Eodpinions d' ,esID In th'II ,Cffter .re fh. porson.' intefpretation of eheri, b .b.nr. mund W. T end are not pro'jlnted a, the opinions of Shields & Comp.' ,