Tabell’s Market Letter – June 18, 1948
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Technical Market Action The rails have turned stronger but, as yet, have failed to penerate the May intra-day high of 63.07 and the May closing high of 6.27. cent strength carried to a high of 61.91 on Thursday and 61.54 on y. The rail average, for the last twenty-seven trading days, has in a relatively narrow trading range bounded by a high of 63.07 a low of 59.10. The strength of the last two days has brought some the relatively laggard issues into the picture. One such issue is Chica 0 Milwaukee St. 'Paul & Pacific fd. ch was recently recommended at )2 7 The stock turned active on y and reached a high of 35 3/4 and closed at 35 3/8. Western PacifiC, another laggard issue in our recommended list, a bit more active and reached 34 1/2. Would like to see the May highs in the rail average penetrated ly. In that event, would expect the secondary rails to attempt catch 'up some lost ground. The industrial average continues to hold around the highs with vidual issues showing diverse action. As yet, regardless of the of upside progress, no distributional tops of importance have been ilt up. Until that occurs, there seems to be no indication of other minor corrections. I still am of the opinion that any worthwhile orrection will come from a somewhat higher level. Individual issues in our recommended list continue to show exellent market action. Radio Corp.of America, which this letter has een consistently recommending in the 8-9 range, reached a high of 15 Friday. From the February low of 7 7/8, this issue has shown almost 00 appreciation. The ultimate objective is above 20. The advance s been rapid however, and some consolidation may be needed. Zenith RadiO, which was recommended at 24 3/8 in our letter of 10th, has been acting nicely and reached a high of 30 5/8. The ssue still looks attractive technically with first resistance levels t 35-37. Copperweld Steel, recommended on the same date at 15 5/8, a new high at 28 3/8 on Friday. The technical pattern continues attractive.' For new purchases, there are two issues that appear to have tively attractive patterns. One is a better grade issue and the r a speculative situation. The first issue is Commercial Solventso The stock recently sold s high as 29 3/8 and, at Fiday's close of 27, seems to have had sufficient correction. The 1946 high was 32 1/4. 'Since the September 946 break, the stock has built up a good base pattern in the 19-26 This area was recently penetrated on the upside. Purchase is ed. The other issue is Raytheon Manufacturing, listed on the New Curb. Friday's close was 9 1/4. The stock is seculative as ness the 1946-1948 price range of 30 high and 5 5/8 low. The high since the'September 1946 break was 13 1/2. Raytheon has built up a potential base pattern between 6 and 10. Purchase is advised on a speculative basis. EDMUND W. TABELL June 18, 1948 SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 191.65 61.n 70.75 The opinions expressed In 'his leHer are the personal interpretation of charh by Mr. Edmund W. labell and are no' presented as the opinions of Shields & Company. — , I –