Technical Market Action Quoted below are excerpts from an editorial in Life Magazine. It is from the issue of September 13th. The editorial is entitled Fear of Plenty and peaks for itself. . In the year of the first Thanksgiving in 1621 the little band of Pilgrims who had lived through the starving time must have had their first inklings of good fortune along about this time in September. Whatever went through their minds, it could only have ranged from humble gratitude to surging happiness. 'The modern fear of plenty had not yet been born, the word 'deflation with all its connotations of bread lines and mortgage foreclosures, was not in Governor Bradford's lexicon. And there was no worrying about the rediscount rate on Massasoit's wampum. This year, two months before Thanksgiving, we have another excellent harvest. It is probably the best in the 341 years of our history. Our 3.5 billion-bushel corn'crop, the lineal descendant of the Pilgrims' 20 acres, is the largest ever, our wheat crop is just under the all-time record. We have raised more rice and soybeans this year than ever before, and little Louisiana is actually exporting rice to China. Soon the cattle in the feed lots and dairies will be champing on the cornj meat, milk, butter and cheese will increase accordingly. As for cotton, the 15 million-bale crop is the largest in a decade, it tops last year's yield by more than 3 million bales. But do we give whoops of joy because of all this Do we even give sober thanks in the manner of the Pilgrims We do not. City dwellers, mindful of agricultural price supports that run into 1950, can't really believe the whopping harvests will make much dent in .the food bill. Farmers, on the other hand, are in a damned-if-we- do-damned-if-we-don't mood. With the nation mulling about in an economic brown 'stUdy, the newspapers feed the popular mood by displaying a schizophrenic morbidity. The front pages are splashed with lamentations about the probability of continuing inflation. Prices on the front pages are going up, up, up. Steel is short, General Motors has had to raise wages to keep pace with the cost-of-living index. But on the fln'nancial pages of the newspapers one can find an entirely different set of woes. Here the murmurs of deflation grow louder each passing day. The price of yellow pine is off at the mill. Real estate dealers complain that houses in the lO,OOO-and-up brackets aren't moving with any speed. Cotton textiles are cheaper and s'oap is down. What we have, then,is a mixture of inflationary and deflationary portents, and the mixture has everybody mixed up. Like the donkey of antiquity who was immobilized between two equidistant bales of hay, we are immobilized between our equal fears of continuing high prices and of a down-spiraling deflation in the economy. Granted that it is no fun to pay through the nose tor things, it still remains true that the last few year's have been relatively good years for the U.S. citizen. The utopian concept of '60 million jobs' has long been a sober reality. Income has been distributed more equitably among the various segments of the population than ever before. If steak has been high, that is partly because more people than ever have been eating steak. So we can't really cry over the recent past. But, apart from the international Situation, have we any more reason to cry over the future In the face of the bountiful 1948 harvests, it strains credulity to believe that the grocer.'s bill can go higher in 1949. The pOliticians are aSking us to vote against inflation this November, but by the time the next president assumes office inflation will, barring war or a crazy increase of paper money, be a dying issue. Deflation will at 'last be on the front pages. .- – The oplnklm expressed in this kltter are the personal interpretations of (harts by eo..,……Mr. Edmund W. labell and are not presented illS the opinklns of Shields & , ( –,'JI … —-,,r——,——–,-.——..- .- J. – – — — .-.s- Technical Market Action -2- How much of a bogie must it be The GI who, fought at Anzio or Okinawa, remembering his father on WPA, may fear it more than he fears another war. As a nation we have a psychological trauma left over from the '30s, when deflation meant unemployment, lost homes and 'Brother, can you spare a dime' But, like generals who make the chronic mistake of preparing for the last war, we may be making a mistake in getting ourselves mentally prepared in 1948 for the depression of 1932. ' Our economy has changed a lot in 15 years. Wages, held in place by new social mechanisms, will not drop suddenly, which means that certain industrial prices will fall only as man-hour efficiency permits. And, since the farm parity principle is here to stay fora while, with agricultural prices linked to industrial prices at a point deemed equitable by Congress, the coming retreat from high crop supports will be'a graded one. Anyway, the main' point to be made about deflation is that it is particularly un- bearable to the individual only when he is badly in debt. A per- son can digest a loss of income when he has to payout less to live. But if he has interest charges, then it is another matter. Well, just how badly are we in deb in 1948 8S compared with 1929 We havenSt gone into elaborate skull practice with the experts, but some things would seem to be pretty obvious. Take the farmer, who would feel the first brunt of falling prices. In 1929 farm mortgage debt was 9 billion plus; in 1947 farm debt was only 5 billion. So this time the farmer can't be scissord quite as easily as he was in the '30s. Nor will the financial community be caught napping by falling prices. The stock market has discounted the comin 'depressions long ago. As for brokers i loans, they were a mere 375 million in July of this year. In 1929 brokers l loans were 8 billion and over. A deflation-in 1949 would hardly be accompanied by panic in Wall Street, for ' the financial community has not been going into debt either to buy tokens of ownership or to bet on continued high prices. Farmers and brokers don't make up the whole nation by any means, but our recent rate of general instalment buying is below that of 1929 in relation to national income. And, where falling prices in the early '30s brought out few cushioning I purchasers, falling prices in 1949 would tempt those individuals among us who still have wartime savings in the bank. Aside from the problem of the national debt, which is a special story, the U.S. economy is in far better shape to weather the change from one price level to another than it was in 1929. This time a deflation might turn out to be one of the traditional boons of capitalism more goods for less money, with people still at work earning the money with which to buy.n . (The above reprinted from LIFE by permission. Copyright TIME Incorporated) September 15, 1948 EDMUND W. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 180.62 60.43 67.81 The opinions expressed In lids 'etter are lhe personal Interpretations at charts by Mr. Edmund W. labell arlCl are not presented as the opinions of Shields &. Company.

– – – -r———-'.,1' . .., -..- — Technical Market Action The weekend foreign news showed no improvement and the market continued its slow down drift on Monday. The industrial average reached a new low both on the closing and at the intra-day lows. The close was 177.37 and the intra-day low was 176.96. This compares with a closing of 179.27 on August 11th and intraday low of 177.40 on the same date. The rail average, however, failed to confirm the downside penetration of the industrials. Monday's closing was 58.89- against a closing of 58.66 on August 16th. The intra-day low of Monday at 58.61 was also above the comparable August low. If the rails continue their favorable action, it could be the indication of an important turning point. Volume indications still continue relatively favorable. Monday's volume of 1,260,000 shares, while above the September 13th total of 680,000 shares, was still less than the previous volume of 2,560,000 shares on July 19th and 1,310,000 on August 11th. Both of these days were days of decline. A downside penetration of both averages would indicate a continuation of the secondary downtrend. It would not, in my opinion, indicate a bear market. By stretching out the May-July distribution tops as far as possible, the worst, downside indication given is a decline to 172-171 in the industrials and 55-54 in the rails. I would be more inclined to favor 176-174 and 56. As against the comparatively moderate distributional top, there is a huge accumulation area in the 160-170 range. It is ,this range that I have considered a buying area ever since September 1946. It has been tested on over a dozen occasions. The potential upside indication on this two year old base is around 250 in the industrial average and 80-85 on the rails. Whether the rails hold above the August lows and form another bullish divergence pattern or whether they break through to new lows depends entirely on the news and the state of mind of an already jittery trading public. However, would consider the level between 176 and 171 to be the worst possible downside objective. Ability of the rails to hold above the August lows and a penetration of the recent highs would indicate a rally to a minimum objective of 195-205. September 20, 1948 EDMUND W. TABELL SHIELDS & COMPANY TIte opinions upressed in Ihls lttor are the persona' Inferpretation. of charl. by Mr. Edmund W. rebell end ere not presented .1 the opinions of Shields & Company.

Technical Market Action The rail average has, as yet, failed to break the August low of 58.24 and thereby confirm the secondary downtrend signal given by the industrials. Similar divergence in the past has often signalled a reversal in trend. Another favorable portent, is the fact that the industrial average, at Tuesday's low of 176.94, had only fractionally penetrated the August low of 177.40. Firmness on Tuesday and Wednesday brought the averages further away from the lows. The industrials closed at 179.16, up 55 and the rails were 58i higher at 59.78. It is too soon to be certain, but the action of Tuesday and Wednesday so far favors the constructive side. As mentioned before, a downside penetration would indicate, at the worst, a continuation of the secondary downtrend to '176-171 in the industrials and possibly 56-53 in the rails. While the b'etter than market action of the rails has been quite evident, another group, the steels, have also shown excellent resistance on the decline. An average of the five leading steels reached a low of only 50.06 in September, against a low of 49.6 in August. This isoted in the tabulation below. August Low September Low 1948 High Dow-Jones Industrials 5 Steels U.S. Steel Bethlehem Steel Republic Steel Jones & Laughlin Youngstown Sheet & Tube 179.16 52.0 79 1/4 35 3/4 29 5/8 35 1/4 80 1/2 177 .40 49.6 75 1/4 34 26 5/8 33 3/8 76 3/4 176.94 50.6 77 1/4 34 7.,/8 28 1/8 33 5/8 79 1-9-4.49 83 1/2 38 3j431 7/8 37 – 87 1 2 The following steels are in my recommended list. They are Armco (28 1/8), Byers,A.M. (20 3/4), Colorado Fuel (18 7/8),Copper- weld (18), Eastern Stainless (15 3/4), Inland (44), Jones & Laughlin (35 1/4), Sharon Steel (38), Wheeling (49), Youngstown Sheet (80). Due to its improved technical pattern would also add U.S. Steel (79t) to the list. Any weakness in the general market should be used to add to holdings. EDMUND W. TABELL September 22, 1948 SHIELDS & COMPANY The opinion, ellipressed in .hlli laHer ere the personal interpretations of charis by Mr. Edmund W. Tabel! lind ere not presented liS the opinions of Shield. & Company. o

Technical Market Action This letter is of necessity a short one as it is being dictated from a hospital bed to which an infected foot has consigned me. Some unkind people may say that I stubbed my toe on the 450 average, but I assure you it was just caused by a tight shoe. Monday's market, by reaching an intra-day low of 175.84 on the industrials and 57.42 on the rails, jointly penetrated the August lows of 177.40 and 58.24 respectively. However, today's market recovered from the opening and the penetration was fractional. I consider this action merely a continuation of the secondary downtrend and while at this time it is problematical whether or not the market will work somewhat lower than yesterday's levels, I strongly feel that we are in or approaching a very favorable buying area. The worst that can be envisioned at this time would be the lower part of the 176-171 range mentioned in my letter of September 22nd. My opinion as to what will be the leading groups on the recovery remains unchanged. The steels and the rails look particularly attractive. This continues to be an almost entirely psychological market in my opinion. A sidelight on this fact is the circumstance that over the last fifteen weeks the market has declined on 14 Mondays and recovered on 10 of the Tuesdays following. This can only be accounted for by the state of mind engendered by the weekend papers and Sunday night commentators. Despite the continuous alarums and ecursions of the last two months, yesterday's lows were only 3.74 and .97 lower, industrials and rails respectively, than the intra-day lows reached on July 19th. To summarize, I feel that we are at or approaching the end of this intermediate downtrend and the turn when it comes will result in much higher prices over the next few months. September 28, 1948 EDMUND W. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails 65-Stock Average 177.54 58.17 66.27 Th. opinion. expressed In this letter are the pananol Interpretation. of chert. by Mr. Edmund W. Tab.1I end are no' presented as Ihe opinion. of Shield. & Company.

Technical Market Action My enforced vacation due to an infected foot, while rather boring; is at least giving me the opportunity of reviewing my portfolio of charts in a quiet atmosphere away from the usual distractions of a busy office and a moving () tape. While I have not completed the entire list, there are several conclusions that can be deduced from the patterns of the averages and of individual stocks. (1) In the face of the disturbing and confusing foreign news, which the headlines and radio have fully dramatized for the past two months, the market has held remarkably well. IAt the extreme lows of last week, the market was less than five points lower than the July lows. (2) In the face of a downtrend, quite a few individual grous have shown better than market action. These groups can be sub-divided into two classifications. In the first classification are groups that have shown excellent technical action for a long time. ,The steel and rails are an example. In the second classification, on the other hand, are groups that have had unfavorable patterns for a long time but now seem to have reached their lows and are beginning to build up fairly sizeable potential base patterns. They are in industries that appear to have about completed their readjustment period. The rubbers, retail issues, liquors and others are in this classification. More about this second classification in our next letter. Getting back to the steels, they continue to show excellent technical action. In fact, the patterns of individual steel stocks are now similar to those of the oil stocks before they started their spectacular rise which 'culminated in July. The tabulation below shows that an average of five leading steel stocks failed, in Septem- ber,to break to the lows of August. Last August Low Week Low Week Low Sfl12t 12th Se12t.26th 1948 High Dow-Jones Ind. 5 Steels u.s. Steel 179.16 52.0 79 1/4 177.40 49.2 75 1/4 176.94 50.6 77 1/4 175.84 50.05 77 1/4 Bethlehem Steel 35 3/4 34 34 7/8 34 1/8 Republic Steel 29 5/8 26 5/8 28 1/8 27 1/2 Jones & Laughlin 35 1/4 33 3/8 33 5/8 33 1/4 Youngstown Sheet 80 1/2 76 3/4 79 78 1/8 Misprinted as 49.6 in Sept.22nd letter. 194.49 83 1/2 38 31 7/8 37 3/4 87 1/2 The rails also have excellent technical patterns. Listed below are the rail issues in my recommended list. Medium Grade S12eculative Atchison,Topeka & S.F. Baltimore & Ohio Atlantic Coast Line Baltimore & Ohio,pfd. Chicago,Northwest Chicago &East. Ill. R.R. A Northern Pacific Chicago Gt. West Cum. pfd Southern Pacific Chicago,Ind. & Louis A Chicago,Mil. & St. Paul pfd Consolidated R.R. Cuba,pfd Delaware,Lack. & Western Denver & Rio Grande W. Gulf,Mobile & Ohio Illinois Central Kansas City Southern Rwy. Minneapolis, St.Paul & S.S.M. St.Louis San Francisco Seaboard Airline,common & pfd. Western Maryland,common & 2nd pfd. Western Pacific Railroad October 4, 1948 EDMUND W.TABELL SHIELDS & COMPANY The opinions expressed in this lett.r are the personal interpretations of charts by Mr. fdmund W. Tabell and are not presented as the opinions of Shields & Company.

Technical Market Action The market continued its advance on WednesdaY and reached new high territory on the advance from the September lows of 175.84 and 57.42. Wednesday's highs were 184.25 and 60.55. Volume was 830,000 shares. Ability of the market to advance on volume of a million shares or over, would b a very constructive indication. Continue to believe that the steels will be the market leaders of the next advancing phase of the market. Even with Wednesday's upswing, the market has been a pretty affair. C. Norman Stabler, New York Herald-Tribune financial editor, summed it up very nicely in the edition of October 12th when he said -Trading is dull in the greatest securities market place in the world, there is a complete pblic apathy toward the selling prices of shares in the corporations that are supplying the goods the world lives on. Just who should be abused for this condition is a questiQn, and there are those'who would suggest as suitable candidates the members of the Securities and Exchange Commission, the 'money lenders' of Wall Street, the Communists, bankers or some other indefinite group not currently popular with the speaker. The fact remains that the present situation is amazing, and also disturbing, for the capitalistic system exists on a plan of continual reinvestment in enterprise. The reinvestment must come from those who earn money. It rests on savings and the reinvestment of such savings. It involves risk, with justifiable rewards when the risk turns out to have supplied society with something it wants. This is all copy-book stuff, familiar to all, but apparently forgotten,at the moment. The stock market, which is supposed to point the way the big financiers are going, is failing miserably. Yields and high earnings against low selling price, apparently mean nothing. There is a lack of willingness to take a risk. There is a disinclination to reinvest savings. There is doubt as to whether the giant of all times, the American industrial empire, which won two wars and gave its people a higher standard of living than ever even dreamed of before, will be able to keep it up. The explanation for such anomolies will have to come from,those who believe them, it cannot come from one who regards such thoughts as mental meanderings in a maze of misinformation. It Regardless of temporary minor fluctuations, I am firmly conthat the market at today's prices is greatly undervalued held back only by intangible fears. When this situation will change or what will change it, 1 do not pretend to know. Putllic psychology is a funny thing and anyone of twenty things could change it overnight When it changes, the present prices, yields and priceto-earnings ratios will not remain at these abnormally low levels for very long. EDMUND W. TABELL 1948 SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 183.84 60.46 68.65 \, The opinions expreued in this letter are the personlll IntefpretalioM of (harts by Mr. Edmund W. Tabell and are not presented as the opinions of Shiekb & Company.

Technical Market Action The market continues to move ahead on slowly 'increasing volume. Despite the fact that since the September 27th lows the market has rallied over eleven points, the advance has been orderly and, as yet, there are no signs of an overbought position. The pace of the advance has been truly remarkable. In the last twenty trading days, the industrial average has advanced on sixteen days and declined on only three. This average has closed higher for the last nine successive trading days. The action of the rails has not been quite as impressive. The rail average, during the same period of time, has advanced on twelve days and declined on seven. In addition, while the industrial average at Wednesday's high of 187.00 has decisively penetrated the September 7th intra-day high of 185.64, the rails at Wednesday's high of 61.41 were still quite a distance away from the comparable 63.25 high of September 7th. However, the rail average has had an equally good percentage advance from the September lows and over the longer term, the rail average is ahead of the industrials. Per-haps it is only normal that they pause and wait for the industrials to catch up. After an advance such as we have witnessed for the last three weeks, it could be in order for the whole market to pause and consolidate. However, recent market action indicates that at this stage, such a consolidation would be minor and of short duration. The action of the steel stocks has been very impressive. Almost every important issue has reached new high territory — not only for the year but for over two years . Most of the steel issues have held in narrow trading ranges for the last four or five months. U. S. Steel, for example, has held in the 76-83 range. In most cases, these ranges have been penetrated on the upside. The upside price objectives for the intermediate term suggest higher levels. Listed below are some of the leading steel issues in my recommended list together with thei'r upside objectives if the 1948 high is penetrated. 1948 HU!ih Wednesday's High Upside Ob,jective Armco Steel Colorado Fuel & Iron Jones & Laughlin Republic Steel Sharon Steel U. S. Steel Wheeling Steel Youngstown Sheet & T. 32 3/8 20 5/8 37 3/4 31 7/8 44 1/8 83 1/2 56 1/4 87 1/2 31 1/4 21 39 32 3/8 45 1/4 84 1/2 56 3/4 86 3/4 41 43 25 – 29 49 39 52 88 – 90 63 – 65 99 – 101 U.S.Steel also has a 101 objective that could be reached during this intermediate advance. The steels are in a definite uptrend with only minor dips indicated. I October 20, 1948 EDMUND W. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 186.51 61.09 69.53 , ,- , The opinions expressed 1n this leHer are the personal interpretations of charts by Mr. Edmund W. labell and are not presented as the optnions of Shields & Company.

Technical Market Action The market had a mild reaction on Monday with the industrial average closing 67t lower and the rails 51t down. Since, prior to Monday, the industrial average had advanced in eleven out of the last twelve trading days, Monday's correction should come as no great shock or surprise. In fact, the mildness of the correction was quite sur- prising. From the action of the various graphs and indicators, it would seem that the market has not quite yet become sufficiently overbought to' indicate more than nominal-corrections at the moment. The industrial average is, of course, just below very heavy overhead resistance of the May-June top. During this period, an extremely large volume of trading took place in the 190-194 range. Obviously, it is going to take some time for the average to penetrate. However, individual groups and stocks, have alreadY penetrated this resistance and I expect this selective action to continue. The steels are a case in point. As you know, this letter has been mentioning the steels as the best acting group eve'r since the September lows when U.S.Steel was almost ten pOints lower. The steels, at that time. had a formation similar to the oil stocks before that group started its sensational rise which culminated in July. As noted in the last letter dated October 20th, the upside objectives for the shorter and intermediate term still indicate higher prices for the steel group. Would expect other groups to join the uptrend as the market broadens out. The rails were also one of my favored groups .. So far they have been rather disappointing. Whi1e, percentagewise, they have advanced as much as the industrials, thy have not yet 'been able to penetrate the September 7th high of 63.25 or the September 2nd high of 63.36. However,. I believe the rails will shortly penetrate the September highs and become one of the stronger groups. Believe the following rail issues in my recommended list are attractive Atchison, Topeka & Santa Fe (117t), Baltimore & Ohio,pfd. (24t), Chicago North Western (19-li-) , Chicago,Milwaukee & St. Paul,pfd, (36), Gulf,Mobile & Ohio (17i), Illinois Central (37-li-) Northern Pacific (2Qf), St. Louis-San Francisco (14i), Seaboard Air Line (24-li-), and Southern Pacific (6ot). October 25, 1948 EDMUND W. TABELL SHIELDS & COMPANY Closings Dow Jones Industrials Dow Jones Rails Dow Jones 65-Stock 189.52 61.73 70.39 The opinions .JIlpressed in this '….r …. the p.noMI Interpretation. of cherb by Mr. Edmund W. labell end are not presented as the opinions of Shield. 6 Company.

– – – – – – – – – – – – – – – – – – — – – – – – — —– – – – – — Technical Market Action At Thursday's low of 187.29, the industrial average had declined 3.29 from the recent high of 190.88. Considering the rise of more than fifteen points from the September 28th low of 175.84, the correction has been very moderate. -It is possible that it may carry a bit lower to 185 which would be a one-third correction of the month old advance. However, I am more inclined to favor the 187-186 area as the correction objective. This area is approximately the top of the broad July-September trading range and should furnish strQng support. In other words, the market at Thursday's lows was very close to what should be a logical rallying point. Of course, the area between 188 and 194 is not going to be an easy one to penetrate. In May-July, the industrial average held in this area with a heavy volume turnover of over 70 million shares. Obviously, it may take some time and certainly increasing volume before this stock is absorbed. However, it is significant that quite a. few market leaders have been able to penetrate the year's highs. Bethlehem Steel, General Motors, U.S. Steel, Dow Chemical, Youngstown Sheet & Tube are all in this category. Believe this selective type of action will continue. Consider the steels and motors as the most attractive groups. The rails have been laggard but could easily swing into the picture. I believe the market, subject to some very minor weakness, is at a buying point for another assault at the 190-194 resistance area. The following issues, among others, are showing better than average technical action. Alleghany Corp.Pfd., Colorado Fuel, Consolidated R.R. of Cuba, Pfd., Copperweld Steel, Cooper Bessemer, Central R. R. of N.J., Electric Power & Light, Jones & Laughlin, Penn-Dixie Cement, Republic Steel, Sharon Steel, A.O. Smith, Seaboard Air Line, Standard Gas 4 pfd., U.S. Pipe, U.S. Steel, Wheeling Steel and Youngstown Sheet & Tube. October 28, 1948 EDMUND W. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials 187.73 Dow-Jones Rails 61.23 Dow-Jones 65-Stock 69.76 tn. opinions .xpreued In ,hi. letter .,. 'h' ptlrlonal Int,rpretMlon, of charb by Mr. Edmund W. label! end are not presented es the opinions of Shield Company.

– – – – – ———————————- Technical Market Action . As suggested in last week's letter, the 187-186 range proved to be a strong downside support level. The average reached a low of 186.99 on October 29th. At Monday's high of 190.45, it had regained practically all the correction from the October 26th high of 190.88 Monday's high of 62.11 in the rail average compares with the October 23rd high of 62.37. Thus both averages are again at practically the highs of the move. The 190-194 area is not going to be easy to penetrate. It may require the assistance of good news and increased volume. Whether the election of Mr. Dewey,which according to the polls is a forgone conclusion, will furnish the necessary spark is open to question. Perhaps that, plus a Republican Senate and House, will result in bringing the further needed buying into the market. Market leadership has been excellent and there are practically no signs of distribution as yet. Once the averages succeed in penetrating the overhead reSistance, and many individual issues have already done so, the advance could easily carry above 200 before any worthwhile resistance is met. As mentioned before, there is no need to built up a further base pattern. The whole October 1946 to May 1948 range between 160 and 187 in the industrial, averages is, in my opinion, an accumulation area and indicates an ultimate objective of 240-260 over the longer term. Obviously, such an advance will be punctuated by numerous corrective reactions. From a timing viewpoint, it should be reached in late 1949 or early 1950, Still continue to believe the steels, motors and rails offer the best profit possibilities. In the unlikely event of a Truman victory the market would undoubtedly sell off. However, there would be no change in the longer term pattern. The fundamental formation is too strong. It would only necessitate a delayed start from a lower base. In event of a loss of the Senate, or a possible tie, I would expect an uncertain market with a backing away from present levels before a penetration is again attempted. November 1, 1948 EDKUND W. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 189.76 61.97 70.56 The opinions expressed in this lettor 11(0 the personal interpretation of charts by Mr. Edmund W. labell and are not presented as the opinions of Shields & Compariy