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Teehnical- Market -Action .. 'U The rails rallied sharply in the final hour of Tuesday's lrket and closed 1.20 higher at 61.76. The industtal average recovered most of the day's earlier losses and closed only 5 cents lower at 189.66. . The weakness of l9 early Tuesday had brought both averages near the lower part of te trading range of the past five weeks. In the industrial average, the market has held between the June 14th high of 194.49 and the May 19th low of 187.46. Tuesday'S low was 188.41. The range of the rail average has been the May 15th high of 63.07 and the June 7th low of 59.10. Tue sday,ts low was 188.41. The range of the rail average has been the May 15th high of 63.07 and the June 7th low of 59.10. Tuesday's low was 60.35. I consider Tuesday's action very encouraging for the nearer term. The rails seem to have again assumed the leadership of the market. This is important. The rails were the leaders in every important advancing phase of the 1942-1946 bull market. Their im- pressive action in the.early part of this year also signalled the twenty-point rally and the bull market confirmation. The rails,at Tuesday's intra-day high of 62.00 had penetrated last week's high of 61.91 and were close to the May high of 63.07. Tuesday's closing of 61.76 was even closer to the May clOSing high of 62.27. A penetration of the May highs would inicate a renewal of the intermediate uptrend in the industrials to our anticipated 200-205 rally objective. While the rail average did not penetrate the May high, individual rail issues reached new high territory. Prominent in this category was Reading Company which was recommended only ten days ago at 21. On news of a dividend increase the stock reached a high of 26 3/4 and closed at that price. Two other issues in our recommended list, Chicago,Milwaukee,St.Paul & Pacific pfd. and Denver & Rio Grande Western, also made new highs for the past twenty months or more. – The complte list of recommended rail issues is reprinted below. The stocks were recommended at various times. The list includes speculative as well as better grade issues. Recommended At Last Sale Alleghany Corp Alleghany Corp,pfd Atchison,Topeka & Santa Fe Baltimore & Ohio , Chicago, Mil.St.Paul & Pac.pfd Chicago North West Denver & Rio Grande Western Gulf,MQbile & Ohio Illinois Central Kansas City Southern Minn.St.Paul & S.S.Marie Northern Pacific Reading Company St.Louis & San Francisco Seaboard Air Line Southern Pacific Western Pacific 3 41 1/2 84 1/4 12 5/8 32 7/8 18 3/8 18 12 3/8 22-20 23 1/8 12 1/2 19 3/8 . 21 9 3/4 23 1/2 44 3.1-4 34 3/8 3 5/8 49 1/4 113 15 3/4 36 1/2' 19 5/8 33 1/2 20 llli\.8 40 3/4 43 12 3/4 26 26 3/4 14 5/8 24 5/8 59 1/2 34 All of these issues have attractive technical patterns and indicate higher levels. In addition,would add Delaware,Lackawanna & Western. to the list. It closed at lIon Tuesday. June 22, 1948 EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in thIS letter er.fl the pel'Onal interpretation of cherts by Mr. Edmund W. Tabell and are not presented u the opinions of hields & Company.