Tabell’s Market Letter – September 07, 1948

Technical Market Action -' The industrials decisively penetrated the August high on Tuesday and confirmed the uptrend signal given by the rail average last week. Tuesdays highs were 185.64 and 63.25 as compared with 184.54 and 62.14 on August 5th. This indicates that the secondary correction of the February-June advance from 164 to 194 has been completed and the next,step is a testing of the 1948 highs of 194.49 and 65.23. If both averages succeed in reaching new high territory, the major uptrend, which is now in effect, will be confirmed. Failure to penetrate the 1948 highs by both averages, followed by a downside penetration of the August lows of 177.40 and 58.25 wouId indicate a bear market. It is the opinion of this writer that the major uptrend will be confirmed and that we are now in a broad upswing of two, to four months duration. The advance should reach the 205-215 level in the industrial average'- While the rails pOint higher, it is difficult to figure the exact objective except in individual issues. First resistance to the advance will be met'at the 188-190 level. After a minor technical correction, would expect a penetration of the 1948 highs. As for groups, believe the rails, steels, automobiles nd machinery equipment issues show the best technical patterns. As for individual issues, suggest the list in my letter of August 11th entitled Stocks With Favorable Technical Patternn. September 7, 1948 EDMUND W. TABELL SHIELDS & COMPANY Closings ,. Dow-Jones Industrials 185.36 .. Dow-Jones Rails Dow-Jones 65-Stock 63012 69.82 ,. — ,. The opinions expressed in this leiter are the personef interpretation of eMrt, by Mr. Edmund W. Ti!lbell and are not presented as the opinions of Shiefdl 6. Gornpeny.