Tabell’s Market Letter – October 24, 1958

r — 0..- NEW yeRK Walston &- Co. – – – – – I n c – – – Members New York Stock SAN FRANCISCO, Les ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO. TABELL'S MARKET LETTER Octeber 24, 1958 With velume centracting semewhat, the Dew-JQnes Industrials clQsed lQwer en th week. Friday's clQse was 539.52 as cempared with the previQus Friday's clQse Qf 546.36 While there were wide mQves in special issues, the general market held in a relatively rQW trading area. I believe that this trading range can centinue fer a lQnger peried ef with the Industrials hclding within the cQnfines ef the 550 high and 530 lew reached during the hectic feur-day trading swing ef Octeber 13th to. 16th. There have been two. previQus IQng trading areas since the present advance ed in April. Frem mid-June to. mid-July the Industrials held in the 470-485 range and fer almQst the entire mQnth Qf August, the average held in the 500-515 area. On the previeus eccasiQns, the mark-et breke' Qut area' Qn the upside.- The-dire Qf the mQve Qut ef the present trading area is, Qf ceurse, net yet knewn. It is PQssible an intermediate term tep may be fQrming instead ef a cQnsQlidating peried. SQmewhere aleng the line there will be a technical CQrrectiQn Qf the advance frQm the lQWS Qf last Octeber. If a dQwnside breakQut takes place, it CQuid happen at this time. Regardless Qf shQrter term gyratiQns, hQwever, the majQr trend is upward. ;'UIll'''1 grQups are appreaching their upside ebjectives, but many ethers are in the early stages Qf an impQrtant rise. The technical actiQn Qf these individual grQups is much mQre im- PQrtant than the actiQn ef the general market averages. BelQw is a brief summary Qf the technical pattern ef seme Qf the mere impQrtant greups. AIRCRAFT – With the exceptien ef BQeing, which IQQks h1gher, there is no. indicatien Qf any impQrtant immediate meve in th1S greup. – A strQng grQup with the prespects indicating s to' add to. hQldings. Pan American Werld andfttmer c n Use minQr dere my favQrites. ALUMINUM – Prebably need SQme cQnselidatiQn, re structive fer lenger TOMOBILES – A deubtful picture here wiU exceptiQn ef General MQtQrs. r ter; Qmpanies, bayeJeacaed their side ebJ ectives and shQuld grWPs appear to' Qffer better prQfit PQss1b11- s. ILDING E in this grQup with SQme issues shQwing much FlintkQte, NatiQnal Gypsum, Bestwall Gypsum, yare shQwing abQve average actiQn. '–.J.''''11 Qf this grQup imprQving rapidly. See my letter Qf Oct. 10th stlrOllg;gf'QUIP but prQbably in need Qf cQnsQlidatiQn. I''c'-u'r-r-'-'''v''el-s-. – The grQup still IQQks higher. Gimbel BrQs. shQuld be bQught hall Fie1d and May al so. app e ar a ttr a ctiv e DRUGS – LQQk high enQugh fQr the mQment and in need Qf cQnsQlidatiQn. PQssible except- iQns are AbbQtt LabQratQries and BristQI-Myers. ELECTRICAL SUPPLIES – PQQr relative strength actiQn. No. sign Qf an immediate mQve. – Need SQme cQnsQlldatiQn. LQng term patterns gQQd. – BQth these grQups have abQut reached upside Qbjectives. Hemz appear attractive, hQwever. – GrQup is in earlier stages Qf an advancing phase. CQntinue to' favor American g. MACHINERY – Individual issues have quite different patterns. Many issues have reached ectives and need cQnsolidation;—' — – The group indicates higher levels. 0. 1mmediate mQve indicated. – Move may not be imminent, but huge base patterns have been formed with much er potentials. Could be amQng leading groups of 1959. InternatiQnal oils such as Royal ch, Shell Transport, Gulf and SQcQny are favQred. Some speculative Canadians CQuid – In a slow uptrend. Entirely a matter of individual issues. MQst steels have reached unside cbjC'ctives, should consQlidate and form new ntU,rn,;. I ,nnd nndel nn 'Ill I It, he, I I ,h til 11,,, 1 .!l III '1 ,lllltntlfHl to hOlY .un ;('rUll!ll'-. 1,f( red tu herelll The wfrlll'liln 1 gwllllntl'e.j t .11 \ ' ,mpll'l( il' .11l tl1f fill nl Illn. I J (I (' ,f I, t''o \1''''f!;;1I ued nI JilL All If llJl\lOlll .Irf til ,h,llIt 111\,11 1l1'tI('C ll.Y!lIJJ'ill.\llll..L/hW St,hhuldel an.1 1 hn..(' ,,,II HI,\ m h.1\(' .In mtl'I.. t III tlw CltllltiC lll… tu 'I''d II()ClIl merely I.. 1\ geller.1I 01 tn ,I 'v /Il,,1 h('t lid noli n-. ,I (Il!lllol(tl' ,\,1.111 Willi to helelIl Will I.e .\ Jill