Tabell’s Market Letter – November 16, 1951

———–.,.————– – — rti;'''J, ';-,–,;,;,c,-;r,,'J1', WoIs tOil.HoffIn0 n &Good win 1';'1',-';f';'ri-;,,,','Z,;;'F,t';;'!'3i t',r I,; J HI,lie/ NEW YORK 5, N. Y 35 Wall Street h''''''fM'''C-n& U…/.,/eCl! PHILADELPHIA 2, PA 1420 Walnut Street LOS ANGELES 13, CALIF. SAN FRANCISCO 4, CALIF. 550 South Spring Street 2615 Montgomery Street f; i'it;; I,' r'Ii i'li DIGBY 4-4141 PENNYPACKER 50;'71 MADISON '322 SUTTER 12700 … L\ ;; TABELL'S MARKET LETTER n 17 ..,' i;!; the At first last week 1 S low of 254.91 the Dow-Jones industrials had support level of 255. The sharp decline resulted in an reached oversold ;;; f-' condition on my short-term technical indicator and a resultant buy signal ,; I, on November 8th. The rally carried to a high of 262.29 this week. However, i-'J' !)!\ the market seemed to encounter considerable resistance at 262 and a short ;-,J, f term sell !-; sentiment signal was given late Thursday. These quick shifts in trading could continue for some future time while the market is building i t;; .a new pattern in the 255-270 area. The direction of the next intermediate q';;' tnrmove is not yet clear. Further weakness over the next few days might result 0-Jz 1' in an oversold condition on the intermediate term indicator which gave a i' i;',i; sell signal in September near the year's high. At the present writing, this ; Isignal is still in effect. r,' fl I continue to advocate the policy of holding substantial cash reser- ;; !hes in accounts mainly interested in intermediate term capital appreciation ! i ,This, of course, does not apply to long term investment accounts whose main 1'1 k1concern is income and long term appreciation. There is nothing in the long -t f;term picture that necessitates disturbing sound investment holdings. ;, '''' However, for intermediate term accounts, the price pattern for the ,'; ;next six months is uncertain enough to warrant keeping 75 of funds liquid 'i;as a buying reserve to purchase undervalued issues at the proper time. The ''; \-'remaining 25 of available funds should be invested in situations that have -, C!sound long term patterns and have not been unduly exploited in the 117 point l.',lrise from the June, 1949 lows. There are a sizeable number of such situa- ; 1Itions available. They may not necessarily move higher against the general ' ;.;market trend but their patterns suggest that they are in a good defensive / !'IipoSition and should be the first to advance when the uptrend is resumed. Fi The following issues comprise my entire recommended list at the mo- l;ment. They should be bought during periods of market weakness ,i, f,'J BETTER GRADE Ci.American News (34) MEDIUM GRADE American Radiator (17) SPECULATIVE ,- American Air. (16) ; 1'(,Armstrong Cork (54) Associated Dr;y Goods (21) Central Foundry (9)',,'.; \'Endicott Johnson (27) 'Fairbanks Morse (44) Haxel Atlas (21) Iarshall Field (28) l.i,iasonite (37) 1'I;,1'1cGraw Electric 55 ) ;til,Montgomery Ward 70) Blaw Knox (18) Bliss (E. W.) 15) Bucyrus Erie 22) Burroughs (17 Carrier (22) Certain-teed (16) City Stores (19) Columbia Pictures (13) Cornell Dubilier (ItO Cuneo Press (12) Eastern Air. (26) , Gray Mfg. (15) ; Gulf,lloblle (29) Int. Te 1 & Tel. (16) ' iptis Elevator (3 ) Dwens Il1.Glass (81) Columbia Gas (15) Columbia Broad. (29) No.West Air.pfd.(22r Poor & COoB (19) ;' J''Western Auto Supply (48) Ellhiottfn(2i8) \ 19 RardioCno(rpH.)(22) ' '1(; Hewitt Robins 25 United Air. (32) ,' n Lerner Stores 24 Universal Pic. (12) ',! Lowenstein (30 Western Airlines (15,') . j National Supply (29) I N .Y. Air Brake (21) ; ; Pac Hic Mills (32) ;.. '1 Paramount (26) ' 1; , co 25I/'I/'',;/11I' Phil ( ) I,;', P'NI' Ii' Shamrock Oil (fl) Smith, A. O. (36 ,t j Std.Steel srPinf (23) i; !;l bag!t;c Fox32 ) nit! November 16, 1951 ' Dow-Jones Ind. -260.39 Dow-Jones Rails- 81.08 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN ' if !,' W,'''o'IHo''m'' m. 'r'' '0' 0'hI, m.m..dom h '0 b. ,o,,,.d .. ,, 0' ,.lid,.,;o, 01 o.n 1o bo, 0, ..11 ' ,Hi… om m. '0 ';m. ',Go;;dib have upon lin int.r.st in informatIon 10m. or b,n.,flt .11 of thl curitil5 mlntioned herein. r.liabl. but not nlulsarily compl,t Th. h lfIoort 'r;;Jouinaqranmtee!d!teriilallhc.alra,b,'e,n,prepn.aIr' edbyI.Su,lnItI,S;.8, ' ,m'a'ttu,to.ffInrocrmoat.olnn,o;n,;y,. ,i,I,;,aq;s., '' ,,J ;'f'i;T.'',';'5,;; '1-' ,'.,,,,/J- , ' '.,'\';-,''',''- , , –. — -.. , ,\ -..-