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Technical Market Action After reaching highs of 187.00 on the industrials and 62.07 on the rails on Wednesday, the market backed away from the overhead resistance and drifted lower on reduced volume. Independent strength in Santa Fe and General Motors failed to arouse the market on Thursday and volume of trading declinec'. to 750,000 shares. Barring some sudden shift in the news, would expect further backing and filling and a test- ing of last week's lows. Continued below is the revised list of recommended issues with favorable technical patterns. As mentioned in my last letter, the present seems a propitious time to switch out of issues that have either about reached their near term upside objectives or have developed uncertain patterns. With this idea in mind, I am adding a number of issues to the list and also removing some. For the reasons outlined above and because other issues appear to have more attractive technical formations, the following issues are being removed from the list bf technically attractive stocks — American Express, Atlas Corporation, Crane & Company, Dome Mines, Interlake Iron, Iternational Tel & Tel, Johns Mansville, Lone Star Cement, Minneapolis Honeywell, Oliver Corporation, Pepsi-Cola, Rayonier, Simmons, Visking Corporation, Westinghouse Air Brake. About half of these issues are selling above the price at originally recommended. Gains total about 50 points and losses about 40 points. Previously, since the first of the year, sale of twenty-two issues was recommended. All of these issues showed some price appreciation, totaling approximately 270 points. Believe the issues listed below, together with the group listed in my last letter and those to be reviewed in the letters to follow, have technically attractive patterns. At around current prices, the stocks mentioned in the medium grade group have a long term upside potential of at least 50 and the issues in the speculative group have a long term upside potential of around 106. Issues marked are new additions to the list. Medium Grade Last Sale 1948 Range 1946 High American Cyanamid Atchison,Topeka & Santa Fe C.I.T. 1l'inancial Celotex Chain Belt Chicago, North West Commercial Credit Commercial Solvents Crown Cork & Seal .l..,…. 38 114 45 301. 28! 20 3/4 50 22 3/4 21i 41t – 33t 63 3/4 1151 – 84 121 3484Je – – 36 22 3/4 58t 38 1/8 33 – 24 43 22 14 3/4 43 511 – 36i 59 3/4 29 – 20 32t 26 e – 17i 31 (a) Speculative American Radiator American Seating Byers (A,M.) Canada Dry Carrier Corp. Certain-teed Products Chicago & Eastern Ill. R.R. A Chicago Gr.Western cum.pfd Chicago,Ind. & Louisville A Chicago,Milwaukee & St.Paul pfd Colorado Fuel' Columbia Gas Consolidated R.R.of Cuba,pfd Consolidated Vultee Copperweld Steel 16 26t – 1126 23 331. 26151 – 1162 351 19 3/4 (a) 19 3/4 – 14 34 20 – 13i 25 II -i!V. – 7i …t4 – 127 261 3135 35//84 ,Be – 30 82 3/4 192 – 12 3/4 23 3/4 '8 – lOt 14 27 3/4 – 19i- lj.7 16i – loi 33 20 e – 13 23; (a) adjusted EDMUND Wl TABELL July 29, 1948 SHIELDS & COMPANY P.S, The freight rate increase, announced after tne close, may provide the needed news item to change market sentiment. EWT The opinktn' expressed In this letter ere the personal Interpretation of charts by Mr. ldmund W. label! and are not presenled as the opinions of Shiekh & Company.