Tabell’s Market Letter – September 02, 1949

TABEll'S MARKET lETTER 3S WALL STREET, NEW YORK 5, N. y, Digby 4-4141 The market concinues in a correctionary phase of the twenty-two point advance from the June lows. At the moment, tecqnical evidence pOints to the prot ability that the correctionary phase will be more in the nature of a consolidation than a reaction. I would expect any decline to reach its low not much below the 175-174 area. Obviously, this slight downtrend will be interrupted by occasional rallies. However, it would be better technical action if most of the work were concentrated in the lower area of the contemplated 183-174 trading range rather thar. around the top. The latter action might possibly build up a broader distrLbution area and indicate a decline of greater magnitude than now indl.caed. While the minor and near terla trend indicators show signs of doubtful or unfavorable act 1.0,-. the longer term'studies show no signs of deterioration. If the advice of the past few weeks has been followed, stocks in unfavorable groups have been liquidated in the 180-183 area and issues wjth favorable long term action have been retained. Would do no new buying until either a signal of the end of the correctionary phase is given or until the industrial average declines below 175. The following are in my recommended list and are attractive on prIce setbacks Better Grade Issues Stock Last Price A4l-ressogl aplr-lV'rlii-tigraph 33 5/8 Allis Chalmers 28 3/4 America Cyanamid 44 1/2 American Horne Products 27 '7/8 Amer-ican-geat-ing….. 35 3/8 ,A.t;.ctr1SOil,l'op-&. 88 3/4 Borg \arner 48 1/4 C.I.T.Financial 55 1/4 Commercial Credit 53 7/8 Endicott-Johnson 31 1/2 F'ederat!d Dept.Stores 29 General Time 21 1/2 Hewitt-Robins 14 3/8 Intertype 26 3/4 .J.ohns-Manv4-l-1e- 39 7/8 Kresge 41 1/4 Phelps Dodge 41 5/8 Shell Union Oil 36 3/4 Sperry-C0I'P,——-257i8- tahdard Steel Spring 15 Stock Speculative Issues Last Price American Airlines American Pr & Lt Avco Bro,ok-ln-)Jj'd;on-e-as Budd CompaflY Carrier Corp C1t-ies-Serv-ic-e Combustion Engineering Continental Baking Denver & Rio Grande Distillers Seagram Eastern Airlines r-ITl0-Gentr Inter. Min.& Chern. Lowenstein McKesson , Robbins lI!iagara Rudsor. Penn-DIxie-Cement Pressed Steel Car Radio Corporation Reynolds Metals st. Regis Paper Schenley Shamrock Oil C, Gas .,-st-ann'aPEi-Gas–4-p,f,!Q. Studebaker Sunshine Mining United Mer & Mfgrs We stern-P-ae-i-f-'i-c- 9 3/8 12 1/8 5 1/8 33 51'; 97P 14 1/2 1/2 15 23 16 14 5/8 26 1/2 28 1/2 24 36 7/8 13 21 5 1/2 11 lilt 20 6 3/lt 28 1/8 27 1/4 30 7/8 22 3/8 9 1/lt 12 1/8 26 lilt September 2, 1949 EDMUND W. TABELL WALSTON, HOFFl'LN &, GOODW I; T This memorandum Is not to be construed as an offer or solicitation of offers to buy Of sell any securities. From time fo time Walston, Hoffman & Goodwin may have an Interest In some or all of the securities mentioned herein. The foregoino material hal been prepared by us as a matter of Information only. It Is baled upon Informahon believed reliable but not neceuarlly complete, Is not guaranteed lIS accurate or final, and is not intended to foreclose Independent Inquiry. — t-