Tabell’s Market Letter – April 23, 1948

Technical Market Action The market continued its advance on Friday ane. the ind4strinl rtverage reached aJ. intra-da.y high of 184.4 Illld the rails 58.68. The close was 183.77 58.1(1. Volune toklled 2,470,000. There is no chenG in the technical patten. \;hi103 the 185-187 area nay cause sone tet.porary hesitation, there is, as yet, no signs of other than a ,linor technic,,. correction bAfore the 195-200 levf'l is rIOached. Of course, this pattern nay change r.ut that is the indicrtion at the Jlooent. The ulphabeticul revif1 of fly reconnendec'. list is continued below J.rkansas Natural Ga.s IIA was originally rccoDnended in January at 5 lie. Last s,le today was 7 1/2. The 1946-1948 range was 8- 3 1/4. Tile st.ock bis built a strong base pattern and has reached a ne; hirh at 7 3/4. The upside objtctis difficult to arrive at but higher levels are indicated over .the longer terrl, Atchison, Topeka & Sant& Fe was originally recom;ended in Dtkmber at Last sale Vias 105 1/2. Th 1946-1948 range Vio.S 121-66. This stock tas all alooft perfect bullish technical pattern I1ith a broad hec.d 2!l(; shoulders baseThe ultioate price objective is souehere around the 200 level.. The first re- sistance level is around 115-120. liould expect an interoediate correction froo th.-.t level. S!1orter tero traders shoul1 take profits in the 115-120 level. Longer tern holders should retain positions. Atlas CorporaJtL ws originally recoended at 23 1/2. Last sale was 23. 1946-1948 ranG W2.S 34 3/8-20. This speciol si-tu&tion investoent trust has a rather irregular pattern but the upside potential is great. It appears to be a very interesting longer tem specull.ti.on. The warrants, listed on the New lo.rIt Curb, and selling nt 5 1/2, ere also interesting. The warrillts rcp..cl',ed a of 13 in 1946. Thy give the right to purchase the; connon at 25 with no tine limit. Baltinore & Ohio was recoooended earlier in the week at 12 5/S. Lst sale was 13 7/8. The 1946-1948 r3nle is 30 1/4 high and 75/8 low. The stock is speculative and is subject to vlide prlce swings. It pppars to be behind the . rail narket. It reached a hi,;h (Jf 16 5/8 in Februury 1947 when the rail average vias bel or. 54 as against 58 1/2 at the loooent. The technical pattern is good with indications of a head and shoulders botto!l at the points of. roughl'Y 11, 8 and 10. Iteroediate indications have a potential of 18 to 21. Bigelow-Sanford Carpet Coopan.z. w;.s originally recoDneuded ill our special letter-of February nth at 56. The last spe was 63. The 1946-191 range ViaS 3 1/4 high and 46 1/4 low. This leading Danufacturer of ccrpets ane rugs has a very &ttractiv technical pattern. Ability to penetrate the 1947 high of 66 would be particularly encourging elld iDdieate Ii long tero objctive in the 90..100 .!!..rco.. Bliss (E. II. ) .& Co. was originally recorJl.lended in the 18;20 buying . range' wd also in uy special letter- of February nth at 2.4. L,st sale Vias 28 3/4. The 194&.1.948 range was 35 1/2 hi;h and 18 1/4 low vii th the hCh being reached in 1947. The stock is a volatile performer but substantially higher levels are indicated with the possibility froo a technical viwpoint of an eventual 50. Near tero resistance will be encountered at 33-35. Borg Warner Corporation was orisinally recoDoended at 44 anc rerecoortended ut tho saoe price in oy special letter of Fehruary 11th. Last sale was 54 1/8 and the 1946-1948 range .1as 61 3/4-36. Th stock appears to be in a slow uptrend to 80-90 level. Ter.tpornry resistance nay be Det around the 1946 high of 61 3/4. Caopbe11, liyant & Cannon was origilwlly recolJJended in the 22-24 bupn rnnge. Last sale Vias 29 3/8. ','hili. the stock still hes a r.!oderately attractive technical pnttern, there are other issu&s thQt show grenter upside potentials. Suest tring profit and switching-into Celotx (27 1/2) which indicates a substantially higher potential long terQ objective. This issue will be reviewed in our next tulletin. EDYlUND \'1. TABELL April 2), 1948 SHIELDS & COMPANY The opinions epressed In Ihi.!. leHer are the personal interpretation of charts by Mr. Edmund W. Taholl and are not presented as Ihe opinions of Shields & Company.