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.',,;,; , ',' '',c;' '',''-c'y, C' Wolsion.Hoffl110n &Goodwin ' 0.,\ ,, , ' ,i-I ' -NEW 'f.QRl–S,-.N. ,'– -, –PHILADELPHIA-l PA LOS ANGELES 13, CALif, SAN fRANCISCO 4, CALIf, 35 Wo!!IlI Street 1420 Wo!!Ilnut Street 550 South Spring Street 265 Montgomery Street , DIGBY 4-4141 PENNYPACKER 55977 ,', -7' , TABELL'S MARKET LETTER MADISON 93232 SUnER 1'2700 ; i The rails pushed ahead to ,new high territory on Tuesday to reach an -; ,intra-day.peak of 113.94. This was'2.15 points above the previous week's ''high of '1,11.79. Profit taking cut down gains at the weekend. The advance l'tn the' 'industrial average, was more modest at a high of 289.18 as compared , ; Y;-ith 287.58 the previous week .. Would be inc lined to be cautious about fol- ; lowing strength at this' stage of the twenty-six point advance from the '' Octoberlciws; Some consolidation or correction may be needed to strengthen ,the marKet's technical pattern. This is evidenced by the warning sell sig- l nal given', last week by the intermediate term technical indicator. ' . Ampng the leaders in last week's rail advance were two issues in my ,';, ;recommended list — Bi).ltimore & Ohio, which reached a new high at 29 3/8, , Land Chicago & Eastern Illinois which reached a new high at 23 5/8. Baltl- ,; (more & Ohio was originally recommended at 18 and Chicago & Eastern Illinois ' iat 17. Both have approximately reached their initial objectives of 28 and ,– ',24. Both. have been held for over six months and they are possible candi- 'dates for' profit -taking. However, both issues have higher longer term po- ; (tentials of 34-35 in the case' of Baltimore & Ohio and 32 in the case of ihicago & Eastern Illinois. Some consolidation or correction may take plac,' fbefore these ,longer term objectives are reached. , Business Week recently published some interesting comparisons of the price action of Standard & Poor's various group averages. I have brought ',' ;,the data, up to date as of December 17th in the following observations. ;',-' i' It' 'is interesting to note that the index of high grade common stocks f.;; ;,has advanced ,6.7 from the preeiection level and is at a new bull market ;;' high. In comparison, the, index 0.1' low-priced common stocks has advanced ;-6.1 in,the same time period. However, the low-priced index at 188.5 is it.a l most 20 Of a below ll the its bull market high reached in 1951. groups, the following have reached new 1949-1952 highs ,' ,since 'Election Day ' ' Aircraft Manuf. Metal – Containers t, Automobiles Metal – Fabricating 5 Auto Parts Natural Gas ;',' Bituminous Coal Office Equipment ' ' Electrical Equip. Paper /' Fin1 a' nce Companies Rails 'V, Food Companies Food Chains Shipbuildi1'J.g Tires , High' Grade Commons Television – Electronics 7, ,' Machinery Utilities i, f, The fol,lowing groups failed to reach new high territory despite the ;',new highs in the averages ,',' r;j\.griCUltural Machinery, Air Transport, Auto Trucks, Building Materials, i'Carpet & Rugs, Chemicals, Confectionery, Copper, Department Stores, Dis;',tillers, ..Drugs-Ethical, Drugs-Proprietary, Fertilizers, 5 & 10 Chains, iinass . Containers, Gold MiningJ Lead-,Zinc, Leather, Low-Priced Commons, 1'.Machine ToolS, Mail Order', Mining & Smelting, Motion Pictures, Oil;)roducers, Oil-Integrated Printing & Publishing, Railroad Equipment, ',Rayon, Shipping', Shoes, Soft Drinks, Steel, Sugar, Textile Weavers, , 'Tobacco, , Vegetable Oils. )' From, my technical work, the groups in the first classification con- '',tinue to 'have interesting patterns and should be bought on price declines. i,possible exceptions ,aTe Bttumlnous Coal, Paper and Tires. ',.. Some' of the groups in the second claSSification appear to be slowly i',;building. up accumulation patterns. They are Air Transport, Building Mate- 'rials,' Dep'artnient S,tores, D'istillers, Drugs-Ethical, Gold Mining, Printing i;p.nd Publishing, Rayon 'and Textile Weavers. Would avoid the others until '. 'the pa'tterns clarify. 'I, , EDMUND W. TABELL '!Jecember' 26, 1952 WALSTON, HOFFMAN & GOODWIN ;' ',' I ',I' ' r,I', ThiS mamoro!!lndum il not to be construed o!!IS an offer or solicitation of offen to buy or sell any securities From time to time Walston, Hoffman & Goodln may 0.', have an interest in lome or all of the IIcuriti85 mentioned herein. The fore90in9 material hal been prepo!!lred by us as a matter of Information only. It is bued I. 7 upon information believed reliable but not neeenarily complete, Is not ;uo!!lro!!lnteed as accurat. or final, and il not Intended to foredose independent InqUiry. , ,,–, ,,-',, J ,.'' ' ',, , \1'- ',,o.-;;,, ,o. -Jl-t,;';' ),' 0.,- '.l,'0.'.' -, ',.-'.' ,,- ,o. 'p ;. '0..' 0. ,',' .– '( ,-J ' ,', -.,.., ,- '–(. ' '