Tabell’s Market Letter – March 23, 1949

TABELL'S MARKET LETTER 35 WAll STREET. NEW YORK 5, N. Y. Digby 4-4141 The market's technical action is becoming increasingly encoura- ging. The first favorable sign was the ability of the Dow-Jones industrial average, at the February 25th low of 170.56, to hold above the November 30th low of 170.35. The fact that the rail average made a new low on February 25th strengthens rather than weakens the picture because this divergence of the two averages is quite often present at important turns of the market. The second encouraging sign was the ability of . the in- dustrials to surpass the previous February high of 175.62 and reach a high of 177.66 before encountering resistance at the 178-180 overhead ly area. The third encouraging sign was the ability of the market Id in the 174-176 support area. Wednesday's low was 174032 and the market has rallied back to 176.20. So far, the market has shown perfect intermediat-e uptrend action. The next move should be a testing of the ire 178-182 overhead reSistance. The fourth favorable Sign is the ility of the high grade investment issues to hold or even advance in face of sharp declines in situations like American Woolen and Magnavox. Continue to believe that the better grade dividend paying stocks be the market leaders of the next aQvance. I am reprinting my recomm.en.oed list below. This list contains a large number of better issues. American Cyanamid Amero Home Products rican Seating March 23, 1949 Closing 3/23/49 40 1/2 26 26 3/4 6 1/4 33 7/8 29 7/8 46 3/4 43 3/4 51 27 1/4 23 45 3/4 15 7/8 22 5/8 49 15 1/2 25 1/4 19 1/4 19 1/2 23 1/8 25 1/4 '26 Johns Manville Joy Manufacturing Kresge (S.S.) Lowenstein Niagara & Hudson Paraffine Companies Penn-Dixie-Cement Pressed Steel Car Radio Corp Reynolds Metals St. Regis Paper Schenley Sears Roebuck Shamrock Oil & Gas Sharon Steel Shell Union Oil Sperry Corp Standard Steel Spring Sylvania Electric Wheeling Steel White Sewing I'lachine Youngstown Sheet & Tube ClOSing 3/23/49 37 1/8 39 36 7/8 21 5/8 9 3/4 17 3/4 20 3/8 6 12 20 1/2 8 1/8 26 1/2 36 3/4 30 3/8 33 1/4 34 3/8 27 7/8 15 21 7/8 44 3/4 22 70 EDMUND W. TABELL viALSTON , HOFFMAN & GOODWIN Thl. memorandum I. not to be construed at an offer or ,allettatlon 01 offen to buy or sell en., '.curltl… From time to tlrM Walston, Hoffman & Soodwln rna, have an lnte,est In lome or all of the securltle. mentioned herein. The loraoolnq mat.rlal hu been prepared by us III a matter of Information only. It I, based upon Information belleyed rellabl. but not necIIIlSarlly complete, 1s not 9uaranteed as accurat. or fInal, and II not Intended to foreclole Independent InquIry.