Tabell’s Market Letter – November 05, 1954

Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES ,( NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,.,Id) OffiCES COAST TO COAST CONNEcnr. BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER November 5, 1954 The technical action of the market both before and after the election has been most impressive. Prior to Tuesday, the industrial average held at the 350 support level which was the low of the midOctober decline. On the day after the election, the Dow industrials rose 7.54 and then on Thursday gained another 5.45 to reach a new peak since September 19, 1929'. -Also, on Thursday-; the rail-average climbedtoo- a new high since October, 1930. Volume of trading stepped up sharply. These upside penetrations of the October 1954 highs of 366.40 in the Industrials and 121.50 in the Rails indicated a renewal of the uptrUnd. –, The next objective is probably an advance to the 370-400 level in the industrials and 128-132 in the rails. Regardless of the action of the averages, selected groups and individual issues will continue to show above-average action. Best acting groups continue to be building issues, airlines, electronics, department stores, aluminum, food products, fertilizers, farm machinery, steel and selected issues in the machinery group. Scme of the oils and chemicals are also showing signs of improving action. Listed below are a number of issues that, technically, appear to offer interesting possibilities of capital appreciation over the next year or so. To guide individual investors, I have classified these issues under their quality ratings. Group includes the more conservative type of investment. Group B includes issues of good quality but somewhat below the investment quality of the first group. Group C includes the more speculative issues Chain Belt Corn Products Dow Chemical Gel e'-'l.J fJ i j . s Hooker Electro. ' Allegheny Ludlum Allied tores American Potash American Viscose Black & Decker Blaw Knox Chicago,Rock Is. Cities ,service Admiral Corp. Associated Dry Goods Bell & Howell Certainteed Chicago,Gt.Viest. Continental Motors Greer Hydraulics Merck & Co. Monsanto Chern. Fenick & Fcrd Pennsylvania Salt Ffizer GROUF B Colgate Palmolive Combustion Eng. Cornell Dubilier Crane Co. Dresser Ind. Hewitt-Robins Idaho Power Lion Oil Union Carbide Union Oil United Fruit Victor Chemical Sinclair United Mer.Mfgrs. United Shoe Mach. Visking Corp. \estern Pacific Yale & Towne GROUF C Jaeger Machine M-K-T, pfd. Mullins Mfg. National irlines New York Central Northern Facific Pan-American ,drways Raytheon Robertshaw-Fulton- Simmons Co. Tung-Sol Elec. – Iestern Union Zenith RadiO EDMUND Vi. TABELL WALSTON & CO.