Tabell’s Market Letter – April 01, 1949

TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4-4141 After two day of heavy volume on Tuesday and Wednesday, with the averages reachin highs of 179.19 and 49.86 (up 4.20 and 2.05 from Monday's close), the market lost about half of the gain on Thursday and Friday ,on reduced volume. Date March 29th March 30th March 31st April 1st Industrial Averag;e Advance Decline 2.40 .06 1.35 .82 Total Volume 1,800,000 1,850,000 980,000 850,000 ,' ''\.. – Tuesday I s and Wednesday's volume was the largest since the NDvember decline. The fact that the market was unable to move ahead more than six cents on Wednesday's heavy trading indicates that the 178-182 upside resistance will be difficult to penetrate. The,declining volume on Thursday's and Friday'S sell-off is a favorable factor. The market is wedged between the January 7th to February 3rd upside reSistance and the March 7th to March 28th downside support. During the first period the market held in a range between 182.50 high and 177.88 low for twenty-four trading days. During the second period the market held in a range between 177.66 high and 174.30 low for nineteen trading days. At Friday'S close of 176.28, the market was off the top of the downSide support area. The hope that the upside gap at Tuesday's opening would prove to be a breakaway gap was destroyed when the gap was closed on Friday. It would appear that more time may have to be spent in the broad 175-182 area before the advance will be resumed. The market continues in the uptrend channel from the February 25th lows as witness the table below Date High Low February 25th March 14th March 23rd March 30th 177.66 179.19 170.56 174.32 We have issued recent thumbnail sketches on Brooklyn Union Gas, Commonwealth & Southern, Sharon Steel and White Sewing Machine. They are available on request. The first two issues are being added to our recommended list. The last two have been part of the list for some time. April 1, 1949 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN 1lIT, memorandum II no. to b, contfrued 1111 en offer or ItOllcitatlon of off. to buy or 11 any securltl… kom tIme to tlmo Walston, Hoffman & Goodwin may r.haft an Int.rt'st In some or all of the IKurtties mentioned her,ln. The for'4011'l; mat.rlal has been prepared by us ill II; matter of Information only. It based upon InformatIon bellend reliable but not necessarily compl.t., II not ;uo!Irent..d as accura or final, and I, not Intended to foreclose 1ndependent Inquiry.