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Walston &- Co. c,,,,,,timuzt DecuJutuJ- . ………. ,.,………. .- … -.. MEMBERSNEW YORICSTOCK EXCHANGE AND O1HER lEADING STOCK AND COMMOOITY EXCHANGeS ,, NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swa,..lod) OFFICES COAST TO COAST CONNECTED BY DIRECT PR1VAlE WIRE S'1snM l'ABELL'S MARKET LEnER AL8ERr f. Dlsby srI4A,tA, '4/4/ . The market, earlier in the week, declined to our suggested buying levels of 275-270 in the Dow-Jones industrials and 103-100 in the rails. \ 'The week's lows were 271.99 in the industrials and 102.29 in the rails. ;The subsequent rally carried back to 278.85 and 106.05. There is over- ,head resistance at 279-281 and 107-109 that may temporarily halt any ad- iviantCing tendencides. A tCOnsiderable amount of irregularity and unctertiainty !' ,s 0 be expecte over he next ten days or so, but the 1mport ant h ng ito bear in mind, in my opinion, is that selected issues are a bt on. ' ,weaknes s The' market mayC'-again dec'line to the 275-270 and 103- 0 areas. Ag9.in advise purchases of recommended issues in the buying areas suggested. There is considerable bearishness and nervousness about. It has been suggested that we are now in a bear market and that prices may work con- siderably lower. I do not concur in that opinion. I continue to believe jthat we are in a selective market with some issues headed for higher and jsome destined for lower price levels over the next six months. I do not ;believe there is a probability of a bear market at the moment in the sense 'of a general decline such as witnessed in 1946 or 1937, much less than 1929. !TWit does not mean that some individual issues will not work lower. A igreat many have declined substantially during the past' year, while the general market advanced. ' I believe it is old-fashioned reasoning to speak of the market going up or down in the terms of the averages. To me, the averages are more or less meaningless except in the short term sense that I have used them in the first paragraph of this letter as denoting near term general buying or selling levelS. Over the longer term they have no significance 'exeept as a very general measuring yardstick. The market no longer moves as a unit. , — u 3' .. -..— –..,. – ,..;.. .– – ' —.!– After looking over the graphs of over twelve-hundred industrial ,1sflUes, I find no reason to be particularly bearish. The!'e aroe some issues and groups that look lower and should be avoided, but there are a great many more that appear attractive at current levels. , LONG TERM INVESTMENT In accounts concerned mainly with income and ;longer term appreCiation, I advised increasing invested positions to 100 during weakness to the 275-270 buying level reached last week. I continue this advice. In addition to the issues listed in last week's letter, I would also suggest – American Radiator Borg Warner Bendix Consolo Natural Gas Cornell Dubilier El Paso Nat. Gas Hershey Chocolate Hewitt-Robins,Inc. Joy Manufactuing Smith, A.O. Yale & Towne CAPITAL APPRECIATION In risk accounts concerned mainly with capital appreciation over a six-months period, I now advise a 75 invested position. Additional purchases should be made in the aforementioned buying zones. A list of recommended issues was given in last week's letter. To these may be added , … – American Encaustic Chicago Great Western Columbia Pictures Dome Mines New York Central April 10, 1953 EDMUND W. TABELL WALSTON & CO. This hmcy memorandum Is not to be have an interest In some construed Of all of 8S an, offer or the securities solicitation of offers to mentioned herein. The fbourey9olrnc;sledIIrnaayer!ea1ucratItS'leobsreefinFnraolpmreaptniadmreeids t o time Walston & Co or any partner thereof, by us as a matter oj information only It IS not intended to foreclose Independent Inquiry based upon Information 'believed reliable but nat ne1enanly earnolet!!, ,s not '9ua e. as a . .'