Tabell’s Market Letter – November 20, 1959
View Text Version (OCR)
fILE COpy Walston &- Co. – – – – – I n c . – – Membe,'s New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER November 20,1959 Technical market action is encouraging despite a divergence in the action of th Industrials and Rails. The Dow-Jones Industrials declined quite Sharply early in the wee to reach an intra-day low of 630.99 on Tuesday, and recovered rapidly later in the week The Industrial average now shows a series of higher lows with a September low of 613.30, an October low of 624.55, and Tuesday's low of 630.99. Combined with successive mont higher highs of 643.60 in September, 646.53 in October, and 658.58 earlier this month, an uptrend channel has been formed which would be further confirmed by a hlgh above 658.58. Friday's high was 649. 97. The potential base since September has now been . broadenel sufficiently toindicate a possible 705-710 witllsome temporary reSistance at 655-665. The Rail average has shown much less favorable action. The September low of 149.12 was broken on the downside at this week's low of 145.45. However, the Rail aver age is near its downside objective. In the letter of August 12th, I noted that a downside penetration of the 174-157 range in the Rail average would, from a technical viewroint in- dicate a further decline to about 143. Further tax loss selling may bring the Rail averag down to this level'over the next month. The Rails may need time to form a new base, but appear to be approaching a buying level. My thoughts on the longer term outlook for the market will be sent you next week. It will be in the form of a reprint from the!'Commer- cial & Financial Chronicle of an address to the Arizona Bankers Convention m Phoenix on November 13th. It will be sent in place of the usual weekly letter. Regarding tax-loss selling, the irregular action of the market recently wlll probably result in more tax-loss selling than in 1958. If the market has been higher for most of the year, the December low is usually reached 1onth. In 1958, with the market higher for most of the year, the low d )Wece ber 3rd. In 1957, with the market lower for the last half of the be w was not reached until December 23rd. Probably this year's . e about half-way between the above a — ould be to st;cks s-;l to establish tax losses. good relative strength action and have a considerably higher oten' 1. letter, these suggestions are for longer pull holding of six 0 O. yare not trading recommendations. They are of varied 'uality r i s are in addition to my recommended list which was published in the Ie r f N ber 13th. iday's Price Friday's price Allis Chalmers 34 3/8 Kimberly Clark 71 Aluminium, Ltd. 29 3/4 Lukens Steel 84 Amer. Broad. Para. 32 7/8 Martin Co 44 3/8 Ame r. Distilling 46 1/2 McCall Corp. 28 5/8 Amer. Optical 47 7/8 Montgomery Ward 50 3/4 Armour Co. 35 7/8 Motorola, Inc. 152 1/4 Bendix Aviation 74 Penn Dixie Cement 33 Bethlehem Steel 54 1/8 Pepsi Cola 35 1/8 Conso!. Electronics 47 Pittston Corp. 74 1/8 Copperweld Steel 49 Reynolds Tobacco 62 3/4 Cudahy Pacj;ing. Diamond-National 13 7/8 38 5/8 .- Servel, Inc. Stevens, J. 13 7/8 31 3/8 Ferro Corp. 41 1/2 Swift & Co. 42 5/8 Gen'l Amer. Trans. 52 7/8 United Eng. & Fdry 19 1/8 Great West. Sugar 30 U S. Freight 59 7/8 Hammermill Paper 31 1/8 Woolworth 59 1/4 I am leaving next week for a business trip to Walston's offices in Honolulu and will contmue around the world to TOkyo, Hong Kong, Bangkok, Paris and London. I hope to have something of interest to report on my return on December 21st. In the meantime, there will be several write-ups of individual issues in the letter. EDMUND W. TABELL tllJifllqder na IS to be eonstrued ns, an offer to sell or a sohcitalVo n cu I e E!i-em The Information c6-tbCll'i't-d 'hbMMlI! hy & Cn, Inc All as to ucct!racy e)'pregSlOnq nf or completeness and the lpinlOn are subject to furnl!;hmg thereof III not, chang-e 'Ithout notice nnd under & no circumstances IS to Co, Inc, and Officers, construcd as, a l'eprC'SentnStockholders and hmplo()(''1 Ow-rrot, ptlrChllRC, BC!! and mny have Itn mterest In the SecUlltzes meutJflnro herem. 'rhls mnrlct Jetter IS mtcnde.-l and pre'lentcd merely as n general mformal commentary on duy to day market news nng not as a complete analYSIS Addlt1maJ mfOrmatiOn With respe'!t to any securities referred to herem 'Ill furnished upon request \\ i 301 ,