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TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4-4141 Action of the market strengthens the conviction that He are in the final stages of the thirteen-month decline. While the major trend of the averages is still downward, the intermediate trend has indicated an upward reversal. In fact, market action is satisfactory enough to warrant the advice to purchase on all minor setbacks. The present strength in the market should carry somewhat further. I would expect some resistance in the 169-171 area. Normal technical action after such an occurrence would indicate a correction back to 167-165, from which point the market advance should broaden sharply. Friday's Journal of Commerce starts its editorial with the following comment One fallacy of our times is to think too much in terms of aggregates and averages. The public opinion poll takers are not the only ones to go wrong by carrying such thinking to extremes. While this editorial relates to industrial averages and over-all business statistics, the . same comment could also be applied to the. stock market. Possibly we think too much in terms of stock market averages rather than in indi- vidual stocks. For example, the Dow-Jones industrial average closed on December 31st, 1948, at 177.30. At Friday'S close of 168.08 the averages were down 9.22 points for the first six months of 1949. It is interesting to compare this average market performance with the performance of some of the issues in our recommended list Dow-Jones Industrials American Cyanamid American Home Products American Pro & Lt American Pro & Lt. 5 pfd American Seating Brooklyn Union Gas Carrier Corp Cities Service Commercial Credit Continental Baking Distillers Seagram Federated Dept.Stores Kresge, S.S. Kress, S.H. Lowenstein Niagara Hudson Penn-Dixie-Cement Sunshine Biscuit 1948 Close 177.30 38 5/8 25 7'7/8 73 3/4 24 1/8 19 1/2 13 43 5/8 48 1/2 13 1/4 15 27 3/4 38 54 1/2 22 3/8 7 1/2 19 1/2 38 Last Sale 168.07 41 3/4 ,28 1/8 10 1/8 78 l/2 29 3/8 28 1/4 13 1/4 43 7/8 49 5/8 13 7/8 15 28 3/4 39 5/8 57 1/4 22 7/8 10 1/2 21 1/4 43 I have included in this compilation only those issues which show favorable current action. In fact, would concentrate purchases in these issues. Would add the following to our recommended list during periods of market correction Combustion Engineering-Superheater (25) Standard Gas 4 pfd. (23 7/8) and U.S. & Foreign Securities (21 1/2). July 1, 1949 EDMUND W. TABELL WALSTON, HOFAN & GOODWIN Tbls rMmcrondum II nClt to b. construed a. on offer Clf tollettatlon of off.,. to buy or ,.n an, curltle.. From tim. to tim. Wollton, Hoffman' Goodwin may hon an lnte,t In some or all of the leeurltlu mentioned he,.ln. Th. fore;otnQ mat.rlal hal b'.n prtlpored by us al ill matter of Information only. It r. baled upon Information believed NIT.bl. but flot necessarily complete, 11 not Quatnt..d oil accurate or final, and Is not Intended to foreclale Independent Inquiry.