Tabell’s Market Letter – October 16, 1959

, ! J W—a-lIsntocn.-&– Co. Members New York Stock EXchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFJCES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER October 16, 1959 After backing and filling the first three days of the week, the Dow-Jones Industrial average rallied sharply and, at its intra-day high of 646.53 on Friday, penetrated the rally high of 643.60. Ability to better this high indicates a reversal of the downtrend in effect since early August. Resumption of the uptrend will not mean automatic profits for many investors, however. Unfortunately, many buyers of equities, in the belief that the stock market moves as a unit, have been too inclined slavishly to hold stocks where technical and fund mental work has indicated that prospects were below average. They have, therefore, had 'small profits, or, -indeed, even losses -when the-market was moving serious losses on minor market declines. The following compilation attempts to show the shifting leadership which has been the rule during the past two years. Column 1 lists of Standard & Poor's major indus- trial averages in the order of their performance from October 1957 low to 1958 high. The figures are 1958 highs expressed as percentages of the October 1957 low. The secon column lists the same 2\groups, the figures being July 29, 1959 highs as percentages of 1958 highs, and the thiM column traces performance on the same basis from the July 29th high to date. Obviously, some shifting of investor preference was necessary during the period if optimum results were to be obtained, despite the fact that the market was in a general uptrend. Radio-TV Manufacturers, for 18 months the outstanding performer, have now dropped sharply in the group rankings. Groups that were below average hold- ings in 1958, such as Brewers, Aluminum, Chemicals and Soft DrinkS, suddenly became relatively attractive in 1959. Similar acticn should obtain in the next upmove,. and in order to 'obtain maximum results, the investor will need carefully. ff'J 'W (!jis present holdings .rrWTo–1'v1M-irs. llJo -2Radio-TV Mfrs. \..'y 3acco 10.2 -Drugs – Equip; 191 – -180 Brewers Electr – — SofLDrinks. Coal 10.1 99 Retail 99 Distillers 161 1 126 Contamer Paper 98 -Air Transport – Steel cy–. r' inery 124 Paper e als 124 Uhlities 98 98 Food gs 122 Food 97 Agric.Machinery 1 Machinery 119 Mining & Smelt. 97 .. Railroads Soft Drinks 118 Autos 96 Retail 151 Autos 117 Brewers 96 Tires 150. Office Equip. 117 Railroad 95 , Tobacco 150. Tires 116 Steel 95 – Utilities 149 Foods 112 Chemicals 94 Building 148 Steels 112 Cont, -Metals-Glass 94 – Electronics 148 Tobacco 111 Elec. Equip. 94 Textiles 146 5DO-STOCK COMPo III Distillers 94 .- Cont, Metal-Glass 145 Elec. Equip. 110. Office Equip. 94 5DD-STOCK.COMP.142 Retail 10.8 5DD-STOCK.COMP.94 Aluminum 141 Distillers 10.7 Agric. Machinery 93 Paper . Railroads Aluminum 93 Mining & Smelt. 139 Containers-Paper 106 Electronics 93 Aircraft 135 Paper 106 Copper 92 Soft Drinks 134 Building 10.4 Air Transport 91 Copper . 133 Utilities 104 Building 91 , Elec.Equip. 130. Copper 10.0 Radio-TV Mfrs. 90. Autos 127 Coal 98 Textiles 90. Chemicals 127 Textile 98 Tires 89 Machinery . Coal 126 Cont, Metals-Glass 95 Aircraft 124 Oils 95 Drugs 88 88 – Brewers 123 ' \'1… 11 r Jetter 18 not, and under Aircraft 90 Oils 87 & r;c 86 IS to be co'n'Btrued as, an offer to'1!ell or a sohcltatJon to huy any secuntles rcferrro to herein The mformntton contained herein IS nCotog, uIanrca.ntAeUedeaxsptroesasciocunrsacoyf aot-pcinoimonplealteenessusbaJnecdt thtoe fcuhraDnjllsehmWgItthhoeurteonfoItSic l-q .lbrectors. Satso.eakhroelpdreerssenantsti purcJmole, sell and may have an mtel'est in the- s(!oCurities menbonerl herem JZInI a .mformal rS1mmcntnry on q,ay news anIJ not as a complete anallof\ls AdditIonal mW!p!f9 bf.l. L I Co Jl! m t I merely ns Il general, Il!J!\ referred to herem Will be \VN JOI .