Tabell’s Market Letter – July 07, 1950

. '- Wolston,Hoffmon &, Goodwin SAN fRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. – – —1 LOS ANGELES. CALIF. BAKERSFIELD BEVERLY HillS EAST ORANGE, N. J. HARTFORD, CONN LONG BEACH MODESTO OAKLAND RIVERSIDE SACRAMENTO SAN DIEGO SAN JOSE EUREKA FRESNO HAGERSTOWN, MD. HARRISBURG, PA. PASADENA PITISBURGH, PA PORTlAND, ORE. SANTA ANA SEAnLE, WASH STOCKTON VAllEJO TABELL'S MARItET LETTER ,.' 35 All STREp1. NEW YORK 5, N Y. Digby 4-4141 HOTEL WALDORF-ASTORIA PLaz.!l 96860 The market reached a condition of relative stability in the past week as compared with the hectic fluctuations of the previous week. Since the sharp drop of June 27th,' the industrial average has held in a trading , range between 216.99 and 205.92. Friday's close was 203.59. The rails have held in a range between'53.84 and 50.66. Friday'S close was 52.29. , My technical work continues to indicate that the current decline is an intermediate correction in a major uptrend. At the lows of last week, the industrials had retraced about one-third of the approximately sixty- eight point advance from the June, 1949 lows. That is the minimum correct- tion. One-half to two-thirds is regarded as the maximum. Whether the lows of last week hold depend largely on news developments. If they do not,there are strong support levels all the way down to 185 which would be the maxi- mum two-thirds correction. The downside indications on individual issues point to the 205-195 range as the most likely area where this intermediate decline will bottom out. Would use suc'h a possible decline to purchase stocks. Listed below are three groupings of issues that appear to have attractive technical patterns for long term appreciation. Purchases should be made during periods of market weakness and not on strength. BETTER GRADE MEDIUM GRADE SPECULATIVE XAluminum Co.of Amer. Anderson Clayton )lAtchison,Top. & S.F. Caterpillar Tractor Columbian Carbon Fairbanks Morse Federated Dept.Stores General Electric X General Motors ,i Ingersoll Rand Kennecott Copper Allied Stores Associated Dry G. Avco, pfd. Bullard Burlington Mills California Pack. Carrier Corp. …,…..Celanese Chic. Pneu.Tool Chicago,Rock Island City Stores American Airlines American Airlines,pf American Export Lines Amer.& Fgn Pr.2nd pf Amer. Woolen Boeing Air Bohn Aluminum Braniff Airways Budd Co Capital Airlines , Kresge Libbey-OWens-Ford May Dept.Stores McCrory Stores Mercantile Stores Montgomery Ward National Dairy National LeaCl. Otis Elevator OWens Illinois Penney (J. C ) Pfizer (Chas.) \Pullman Sears, Roebuck ., Stand.Oil of Calif. Stand.Oil of Ind. Stand.Oil of N.J. Union Pacific United Carbon Western Auto Supply Westinghouse Elec. Youngstown Sheet & T. Combustion Eng. Chic. Great West. Crown Zellerbach Chic.lnd & L. . -Distillers Seagram Chic.Mil & St.P. pf Electric Boat Denver & Rio Grande Firestone Tire Eastern Airlines General Tire \lttf4Elastic Stop Nut Hewitt Robins,Inc. oodall Sanford Illinois Central Gray Mfg Inter. Minerals c Interstate Dept!St. Gulf,Mobile & Ohio Long Bell Lumber Lambert Co. ' M-K-T, pfd \'!\eIlIClJ'Q Lerner Stores Lowenstein Radio-Keith-Orpheum Reynolds Metals McGraw ,Hill St.Louis-San Fran ()' National Dept.St. Seaboard Airline Northern Pacific Spiegel pef U Pacific Mills' fjvlHM XRepublic Steel Sunshine Mining T.W.A. Schenley United Airlines Smith (A.O.) United Stores,2nd pf Southern Pacific Western Airlines Southern Railway Western Union Texas & Pac. Rwy. Wyandotte Worsted ,; !- I Twentieth-Cent.Fox Western Pacif-ic July 7, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN This memorandum Is not to be con,trued , n offer or sollclt.!ltlon of offers to buy or '011 any securities. From time to time Walston, Hoffman & GoodwIn mlly hllve an Interest In some or all of the socurities mentioned hereln The foregoing material has been prepared by us as a matter of Information only. It Is based upon information believed reliable but not necessarily comlete. Is not guarnteed liS accurate or final, oIInd I, not in,tended to foreclose independent Inquiry. I — –