Tabell’s Market Letter – December 09, 1949

TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5, N. Y. Digby 4-4141 The market contilmes its churning action In the 190-195 range. While indiVidual issues 'lave moved ahead, the ind\strial average has made little progress for over a nonth. The November 2pd high was 193.63 and the December 5th high was 195.54. That the market Should meet resistance in the 190-195 area is not unexpected. It must be remembered that there was terrific turnover of stock at this level at the May-July 1;,,48 riglls. vihether the market will overcome this heavy resistance and break into new high territory in the 1mmediate future is not certain. Technical work indicates that eventually the overhead reSistance will be penetrated but that may require more time and a moderate te!hnical c(',rr3ction first. If the upslde penetration should occur shortly, it must be remembered that here is also very hetwy supply from 200 to 210, at which level the market topped out in 1946. ' While this reSistance I more than three Jears old, it will still have some effect. While the rise in the geneal avel'a.ges rna be somewhat labored fr'om here on, tht.l.t dCrGS not &pp ly to indi',ldual issues. The technical patterns indicate extreme selectlv;,.'y. If stock A advances three points while stocks, B,C,D and E f',dvance only half a point, the ' average advance would be only one point. Regardless of this small aver- j, age advance, the price enhancement in stck A we.s very satisfactory. expect this type of acti.;n t continue for some til'!e to come. I i I am listing below two columns of better grade stocks. The first , \ column includes issues with above avera'!,;G teChlltcal patterns. '.i'his group ! should move higher over the next !lear. The 8eco.d column inc ludes issues with below average patterns. While these issues have most Jikely reached t''leir lows, any advance ''lVer the in cer,neiiate terro should be limited. Suggest tax switching frsm these issues into the first column Above Average Approx.Price Allied Stores Alpha Port Cement Amer.Ho'1le Prod. 35 35 31 American Stores 30 ,.l j Armstrong Cork Atlantic Refining 48 40 Beechnut Packing 32 Best Foods 32 California Packing 36 Caterpillar Tractor 34 Champion Paper 29 Cincinnati Gas 31 C. I. T. Financ ial Columbian Carbon Combustion Eng.Super. 59 31 26 Commercial Credit Consol.Natural Gas 59 40 Continental Baking 17 Continental Oil 61 Cutler Hammer 23 Deere Diana Stores 39 8 Doehler Jarvis 36 El Paso Natural Gas 27 Elliott Company 27 Endicott Johnson 34 ExcellO 54 Federated Dept.Stores First National Stores g Food Fair 13 General Amer. Trans. General Foods General Port.Cement 45 43'47 General Shoe 32 Hael Atlas Glass 2; Uncertain Approx .Price Acme Steel 20 Allegheny Ludlum 2 fUller .Crystal 'lug',r 19 Affier.Steel Fdries 24 I\nac 'D1l 28 Armco, Steel 28 Baldwin 10 Barker oros. 18 Bige lo; Sanford 25 Briggs Mfg 30 Brunswick-Balke 18 Can;lpbell Wyant 18 Carpenter Steel 31 Central Aguirre 15 Cerro de Pasco 18 Chesapeake & Ohio 28 Clark Equipment 25 Clev.Graphlte Bronze 27 Cluett ('c'abody 24 Ccnmercial Solvents 19 Ccntalner Corp 40 Crar,,, Co , 28 Dav j SOl' Chemical 22 DJ.a1!lOnd Matich General Refrac. 35 24 Glen Alden 17 Grl''lt,. W. T. 27 GI'oat ,orth .Paper Great ltTest . Sugar 39 18 Harbison \Talker 20 Heinz, H.J. 35 Helme (George) 30 Hercules II10tors 15 He'den Chemical 16 Interchenical Corp 18 DeCember 9, 1949 ELII1UED W.'TABELL WAT.STON,rrOFFMAN & GQQDWTN This memorandum Is not hllve 'In 1nterest In lome to or be all construed liS ,!II'J of the securities offer or solicitation of mentioned herein. The offen to buv or sell any secuTlties From foregoing materitil has been prepared by tuims easto time WalsttI, Hof!man & matter of .nformatlon only GooItd,wIinbam!eady upon Information believed reliable but not necessarily complete, Is not r;juarllnteed as lIccurate or final, and I' not Intended to foreclole Independent mqulry. ,U , …………. .. -.- At