Tabell’s Market Letter – April 07, 1961
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Walston &Co. —–Inc —– Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CI-\ICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER Fort Myers Beach, Florida April 7th, 1961 Despite the fact that trading on Tuesday passed the 7 million-share mark for the highest volume in 7 1/2 years, the Dow-Jones Industrials, at the week's intra-day high of 687.76 failed to pass the January, 1960 high of 688.21. The week's low was 671. 29. Believe the present hesitation may last somewhat longer, but would consider any further weakness as a buying opportunity in selected issues. There is a strong support level in the 660-650 area. More important than the fluctuations of the averages is the action of the breadth- of-the-market index.-The It-has moved ahead with only slight interruptions since October, despite the fact that the Industrial averr age has had several mild declines and consolidations during the past five and a half month, The breadth indices usually reach a high long before the averages, as do the volume indic s The advance of both breadth and volume continues to indicate a higher market, subject to normal technical corrections of 3/0 – 5. Of course, the fact that the Industrial average is moving higher does not necessa i mean that each individual investor is doing as well as the averages. Obviously, the right stocks must be owned. The Dow-Jones Industrial average of thirty stocks has sold near the January 5th 1960 intra-day high of 688.21 during the past week. Standard & Poor's Indus- trial Index is selling considerably above this level. However, the fortunes of each individual investor would vary considerably depending on which of the twelve stocks listed below were in his portfolio on January 5th, 1960. All of the twelve are part of the Dow-Jones In dustrial average. Holding each of them from the January, 1960 high to date would have shown the following results. Price Stock 1/5/60 Amer. Tel & Tel 82 Prices are Price 4/6/61 Advance 126 54 0 Au num \,y pilice Price ),jjj60 4/6/61 Decline 105 76 28 Intern'l Nickel Johns Manville 54 50 67 1\ ( \y \). \.Y Ie . eral Elec. Tire 99 48 64 35 36 25 Procter & 7 Intern'l Paper 44 33 25 Of cours .g ie in the Dow-Jones Industrial average would resulted in a mucH comparison. As the adva e it is to be expected that the averages will not show the true picture as far issues are concerned. Issues that have been the market leaders for the past l!reveral months will tire and new groups will carry the ball. As long as the majority of groups continue to advance, this rotation of strength is not, as some commentators have noted, a danger signal. It is only toward the end of a major advanc that a small group of stocks carry the averages higher while the majority of stocks are declining. This type of action will show up in the breadth indices. There is no indication of this happening at the moment. Several issues in our recommended list reached their upside objectives based on our technical work and they are being dropped from the list. They are American Chicle (recommended at 76) which reached its 95-100 objective, Fansteel (recommended at 44) which reached the 58.potential and Gerber Products (rec;o.mmended which reached the 90 objective. Both American Chicle and Gerber Products have been held for less than six months. It is the purpose of this letter to recommend issues for longer-term holding. We do not attempt to guess the short-term swings in the market. For those who cannot afford to take short-term gains because of tax reasons, the two issues may be retained until the six months holding period elapses. However, better opportunities may exist in other issues in our recommended list which is available through your Walston Account Executive. Suggestions include American Broadcasting (49) ,American Smelting (61) Anderson Clayton (41), Audio Devices (31), Cluett Peabody (66), Columbian Carbon (58), Diamond National (45), Electric Storage Battery (64), Heyden-Newport (28), International Minerals & Chem. (45), Johns Manville (69), Magnavox (72), Northern Pacific (46), Pan- handle Eastern Pipe (55) ,Reeves Bros. (22), Swift & Co. (45) and U S. Borax (43). IS to be construed 8.S, an offer to Bell – I – to herem The mformatIon !Wcpracy or completeness and the furnishmg thereofUWJiQtT be construed as, a representa- Y1dJ\ bf & Alf. or opmlOn are subject to change without Inb'.d'rA'l aftkh's,. Directors, Stockholders and Employees thereof, Bell ani! may hn.ve an lnterest m the Bccurlues mentIOned herCiTI ThiS market letter IS intended and Iresented merely as '!' general, inrormul commentnry on duy to da)' market news ang not as a complete analYSIS Additional iTIfOrmatlOn With respect to (Lny secUrities referred to herem be furnished upon request . \