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r' c't'' – —, – – – – – – ——- – . -/' — . . —..- Walston &Co. MEMBERS NEW YORl( STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,t,.,Id J OFFICES COAST TO COAST CONNECTfG BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET LEnER September 17,1954 The industrial average has moved into new high territory and the in- termediate term correction of the long term advance proved to be one of the mildest of the ten recorded since June 1949 and was completed in a very short time period with very little effect on individual securities. What the averages do from this point on is not particularly 'important. The entire advance that started in 1949 has been characterized by extreme . sele tizi ty. ,-;r.D.as–\,-ee,n.parJ.icularliYtrue,inthepas.t-4wo'.years '. -Thiis selectivity will, in my opinion, continue into the foreseeable future. A few issues have had excessive price advances and are in need of rest and consolidation. A few other issues are faced with a declining earnings trend and may do nothing marketwise or work lower. Outside of these two categories, there are plenty of issues that will show improved earnings, high dividend yields and appear to have a favorable business outlook. Issues of this type should move higher. Below is the continuation of the technical appraisal of the issues in my recommended list MINNESOTA POWER & LIGHT (24) The stock appears to be in a slow uptrend channel. The outer limits are now 27 and 21. MISSOURI-KANSAS-TEXAS,PFD. (760 The stock has held in the 58-70 range since mid-1952. The upside penetration indicates 88 followed by 104. There is support at 7067. MONTANA POWER CO. (36) The upside objective is 38-40. The recent high was 38. Time may be needed to form a new pattern. NATIONAL GYPSUM (34) The initial objective was 32-35, but the broad 15-23 base has an ultimate objective of 42-44 followed by a possible 50-54. Reached a recent high of 37. Has held in 37-33 area. An upside Pnetra- – tion would indicate 41-,42., —. NEW-YORK AIR BRAKE (,20)1he stock appears to be ,,, C-'. forming a potential base at 17-13-18 with a top at 23. An upside penetration would indicate 29 followed by a later 40-1,2. A dip below 17 would indicate 12. Action may be slow. PAN-AMERICAN WORLD AIRWAYS (14) Probably has the best term pattern of the airline group. Ability to penetrate 12 1/2 indicates, 17-19 followed by a long term 27-35. Recent high was 15. There is strong support at 13-12. PARKE DAVIS (33) The stock reached its downside obj ectiVea't the 1953 low of 31. Has held in the 31-37 range. An upside penetration would in- dicate 44-51. There is supply at 42-46 that will slow advance. There is support at 31-25. PENN-DIXIE CEMENT (51) The recent high was 56. The long term objective is 73-80. There is downside support at 50-47 where stock should be bought. PENNSYLVANIA SALT (46) The upside breakout of the long 41-46 range in- dicates an eventual 57-65. Recent high was 50. Buy on minor price dips. There is support at 44. PFIZER (CHAS.) (36) May be forming a head and shoulders base at 31-6-31 with a top at 38. An upside penetration would indicate 55-60. PITTSBURGH COKE & CHEMICAL (19) The top formed in 1951 indicated a dec line to tl!.20-16a.r.,a. 195! .low- was 18There isus-t,-ong support at . — -17-i6. May be forming a potential base in the 18-22 range. An upside penetration would indicate 25-30 where there is heavy overhead resist- ance. An interesting speculation. PUBLIC SERVICE OF COLORADO (41) The upside objective is an eventual 46. The recent high \/as 43. Time may be needed to form a new pattern. II n ,curili.. From time to lime Wo!Ililon & Co. or any partner thereof, 'IiTh may memoroltndum 1'1 not 10 be h…. an 'nterut ,n some construed or al\ of .1 on off.r or the securities sol,c,lat,on of o'f.,. to mentioned her.1ft The fbourye9or'ns9.. iii ,!ri' h,n bn prepared ma cc rate or final and by not UI o!I matter of ,nformation 01'11.,. It , ,.. ded to loreclole independent ,nqulry b,ned upon inlormtltlon beli.yed reliable bitt not I'I.CtIar,ly compl.'e, IS not 9uara u . ' o ,,..,,,,,,,,,,,,u,,,,,,.;;',.,.,r.-.n.,–m'-.r,nar.,………….,……- – – – ' – – – – -.'…..-.;.;' .. ., ; i '. ' -2-' PULLMAN (56) The upside penetration of the 5648 area indicates 69-76, but there is heavy supply all the way up ,which will slow action. The near term indication is 60-64. Recent high was 57. There is support at 51-48. '. RADIO CORP.OF AMERICA (34) The stock formed a very strong base in the 21-29 range. The objective is 34-36 followed by a later 43. Reached a high of 35. Has held in the 35-32 area. An upside penetration would indicate 41. There is support at 30. ' , 'REPUBLIC' STEEL-' (63)- The'upside potential appearS''to-be-7278The re'-'' – cent high was 64. There is downside support at 56. ROBERTSHAW FULTON (28) The upside penetration of the 15-21 range indi- cates 29 followed by 39-40. There is support at 25-23. Recent high was 29. ST. JOSEPH LEAD (40) The upside penetration of the 31-38 base indi- cates an objective of 47-50. Recent high was 41. There is support at 35. SHAMROCK OIL & GAS (49) The intermediate term indication is 50-56. The recent high was 51. The long term indication is 65-75. Has held in the 45-51 range. An upside penetration would indicate 58-60. A downside pene- tration would indicate a return to the strong '43-42 support level. SH1MONS COMPANY (35) The upside penetration of the 28-35 area indicates 47-52. There is some supply at 37-40 that may slow action. Recent high was 37. The long term indication is 70-80. Has held in 38-34 area. Up- side penetration would indicate 40-42. Downside would indicate 32-30 where stock should be bought. ' SYLVANIA ELECTRIC (37) The stock held in the 30-36 range since early 1953. The upside penetration indicates 41. Reached a high of 40. The long term potential is 60-64 followed by a possible 77-81. There is down- side support at 35-32. UNION BAG & PAPER (62) The stock has an irregular pattern but the upside Rpee'nceenttrat'ihotgnhowafs t he 63 39-50 —Buy onra-nmgoedeirnaXdei cates decl i 62-66 follo nes 'Tliere w-ised ' by sup pao-,iJl;aateC575080. UNION CARBIDE (81) The entire picture is one of a slowly rising trend punctuated by small trading plateaus. The recent high was 89. There is downside support at 77-75. A new pattern must be formed for a new up- side objective. UNION OIL OF CALIFORNIA (48) The upside penetration of the 36-45 range indicates 60-62 followed by a possible 70-76. Recent high was 50. Buy on all minor price declines. There is strong support at 45-43. UNITED FRUIT (50) The stock appears to be in the process of forming a slow base. The advance may be slow as there is heavy upside resistance. The potential base formed indicates 56-59 followed by 66-71. There is support at 46-42. UNITED STATES STEEL (56) The upside potential appears to be 60-70. Re- cent high was 56. Buy on dips. '. VICTOR CHEMICAL (33) The stock has broken out on the upside of the long 24-32 range. The first objective is 42-44 followed by a possible 48-52. The recent high was 35. There is support at 30. VISKING CORP. (64) The stock formed a long term head and shoulders bottom at 31-25-28. The upside penetration indicates a long term 95. There is support at 62-60. WESTERN AUTO SUPPLY (1!9J Despj.te the recent.. we.akness, .the.,.stockis still in a slow uptrend .There is heevy overhead'-supply and action may be slow. Upside potential for near term is 55-57. YALE & TOVINE (47) The initial upside obj ective was 49-52. Recent high was 49. Intermediate term pattern indicates 66 followed by a long term 80-90. Add to holdings on minor price declines. There is support at 43-40. EDMUND W. TABELL WALSTON & CO.