Tabell’s Market Letter – October 17, 1952

Wolston.Hoffluon &- .\'.' ,, , '- ,. , ',,,'- ,,,'. ' , ' , Goodwin,',,'', ' ' ..,', ''0. /' , NEW YORK S, N. Y. 35 Wall Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55977 ' TABEll'S MARKET lETTER LOS ANGELES 13. CALIF. SAN FRANCISCO 4, CALIF. 550 South Spring Street 265 Montgomery Street MADISON 93232 SUTTER 1,2700 The Dow-Jones industrials broke down below the September 12th support' level of 267.08 to reach a low of 263.33 on Thursday. The rails showed bet-, ter action and, at the week's low of 97.21, succeeded in holding above the September 12th low of 96.87. The sharp decline in the industrials brought ' the short term technical indicator into oversold territory and a buy signal as indicated early Friday. This, of course, applies only to the shorter ' term trend. The intermediate trend indicator has not yet reversed the down-, ward signal given at the August highs. However, as we have noted many times the averages have not shown a true picture of the market. The action of in',' dividual groups and issues is much more important. From a technical view- ' point, there are still quite a few groups that, despite the already sharp ,c' decline, indicate lower levels. Steels, oils, metals, chemicals and possib1y, rubbers, are in this classification and should be avoided. Other groups show much better technical action and should be bought during periods of weakness. , LONG TERM INVESTMENT Despite the fact that the intermediate term trend may be down, I continue to advise a 100 invested position in account concerned mainly with income and longer term appreciation. Holdings of sourid,- , , good quality, dividend paying issues should be retained, particularly when, ,', bought at considerably lower price levels. The longer term trend indicates' ultimately higher price levels and good grade issues should continue divi- , dend payments at approximately present rates. Further weakness should pre- , sent buying opportunities in selected issues , Abbott Lab. (A) Price Bin Range 435- 0 Hall Print. .. 'Allis Chalmers 50 48-45 Joy Mfg. I'Price 16 Bup6n-rRange i 33 33-30 ric; ',, Amer. Chain 28 27-25 Lone Star C. 27 27-25 .. ,' ; ;Amer. Rad. 14 14-13 Lowenstein' 31 30-28 ' , Amer. Seating 20 ',.Amer. Te1ephone(A) 153 20-18 Mkt. Mont. Ward Owens Ill.G. 56 71 60-56 70-65 ' Armstrong Cork Babcock & Wilcox , B1aw Knox ,,'Bucyrus Erie 49 32 16 23 50-48 34-32 17-15 23-22 Pacific Mills Parke Davis Penn.Salt (A) Pfizer 29 42 51 32 31-29 42-40 50-45 32-28 , , BUrlington Mills ,Burroughs Add. ',Celanese , Chain Belt (A) CoL Gas (A) Elliott 15 17 37 33 13 26 16-14 17-16 40-35 35-33 13-12 27-25 Phillips Pete. Shamrock Oil Smith (A.p.) Sylvania El. u.S.Gypsum Western Auto 54 38 33 38 112 50 53-50 36-34 34-32 32-30 110-105 49-46 ', ; CAPITAL APPRECIATION I had advised an invested position of only i– ',' 25 to 50 in accounts concerned mainly with capital appreciation over a ,, , six months period. My letter of September 19th advised raising invested ; , positions to 60 on further weakness into buying ranges in selected issues.-;, Some of these buying ranges were reached during recent weakness. Continue , 40 liquid awaiting further opportunities. Price Buying Range Price Admiral (A) 31 27-25 Hercules Mot. 17 Allegheny Lud. 33 33-28 Interchem. 19 BaIt. & Ohio cuit Mills , ;!.ggs Mfg. 21 20-18 Int. Tel. 18 17 21-19 Mo.Kan.Tex.pf. 66 35 35-34 Minn. St.P. SSM 16 ''0anadian Brew. 17 18-16 Natl.Dist. 20 Carrier (A) 29 27-25 N.Y.Air. (A) 19 Certainteed 13 14-13 Paramount 23 'fChic. East . Ill. 18 17-16 Pittston 27 Chic. Gt.West. 21 20-18 So.Rwy. 68 ,;C1imax Molyb. 36 33-30 Univ. Pict. 13 Col. Broad. 37 33-30 Vanadium 37 ; Dmver Rio Clrande 74 70-65 Warren Petrol. 29 i,Eastern Airlines 23 22-20 Western Air. (A) 10 ,) li''tnsteel 25 24-22 Western Md. 19 Buying Range 18-16 20-18 17-15 58-55 17-15 23-21 20-18 23-21 27-25 60-56 12-11 40-37 28-25 11-10 20-18 'F'erroCorp.(A) 26 28-26 Western Pac. 54 50-46 ',Gr'r';JJS1Y in recoended ltt2 (A) Offered by prospectus only. ' 0 T.hlrvIJlO.lld nol-f ,.epnstrued as an offer or 5Olidtafion of off.rs to buy OIJJlMJlT,ri ftlf'll\ ToTtiml! W.e.hton, Hoffman & Goodwin may f, , ChlWiJlLMfnIbrel.l.il r'melo)fiJll4f the securities mentioned herein. Th. foregoing mate'HJIlW pftredLtJ-dP.N-h' matter of informoStion only. It is based I'- upon Information b.lieyed reliable but not necenarily complete, 1, not ;uaranteeASTOMinaHeFFM'AN'en&d (!tOOOWWependent inqUiry. 1',' /,,,;',' -',.. '''.''-''''''''''' .. C,,', ,,', ','', ,,' –'C, ,- ' c,- ',C', '-', ''C' ',,-,\.