Tabell’s Market Letter – July 27, 1962

Tabell’s Market Letter – July 27, 1962

Tabell's Market Letter - July 27, 1962
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r — –;;iiO..—–…..—.- … Walston &Co . lnc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CKiCAGO OFFices COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER July 27, 1962 Since May 27th, the Dow-Jones Industrial average has fluctuated in a hundred- point area between 625 and 525. Actually, most of the time has been spent in a much nar rower range. For the past forty-three trading days, including May 27th, the average has sold below 550 during only five trading days and above 600 during only ten trading days. For the remaining twenty-eight trading days, or almost two-thirds of the time, the intra- day range has been between 550 and 600. During this two-month period, the averages and a sizable number of individual issues have, from a technical viewpoint, formed fairly substantial potential base patterns. The Dow-Jones Industrials, 'for example, have built a possible base centering around the 570-575 area with'a possible'upside potential-of- 620 to 650.1'Technically, such an objective would be signalled by the 'ability of the aver- age to reach 600. The early July intra-day high was 599.02. Such an objective would also be signalled by the ability of the breadth index to better its early July high. Our various breadth have shown definitely improving June. While no positive signals of a action of an In';!''' LUIUll to the averages. For example, if the average declined 10/0 and an individual stock de- clined only 50/0, that stock is showing above-average action or good relative strength des- pite the fact that it has declined. Conversely, if the average advanced 100/0, and an indi- vidual stock advanced only 50/0, the relative strength of the individual stock is poorlAno- ther, and simpler, approach is to select the stocks or that have held above a previous low despite the fact that the territory., For the Dow-Jones Industrial average ,1960, and then advanced to 741. 30 in November of 19 1. broken below the 1960 low to reach 524. 55. The hlyeJleI,d,aboye their i9601ows have, therefore, action and their relative strength is good despite the fact in price. There is that these issues aretrmenedetoinrg b ages. Some of the m(ll'jiVfinportarlt category are listed MjlhclbeLle'HJ.Y Aerospace Automobile Auto Trucks Banks-Outside N. Y. Beverage -Distillers Beverage- Soft Drinks Coal Containers-Metal & Glass Fertilizers Finance Companies Fire Insurance Food Gold Mining Machine Tools Machinery-Construction Machinery-Oil Well Machinery-Steam Generating Mining and Smelting Natural Gas Office Equipment Oil Railroad Equipment Rayon Retail Stores Shipbuilding Shipping Soaps Textiles Tobaccos -Utilities The oils have shown particularly good technical action.This group average reach- ed its high in June, 1957 and compl eted a three-wave downtrend three years later in 1960. Since that time the group average has been in a slow uptrend. It has not only held above the 1960 low but also above its October, 1961 low. Among the oils and associated companies in our recommended ,list are Gulf Oil (35), Kern County Land (70), Louisiana Land (65), J. Ray McDermott (23), Murphy Corp. (16), Phillips Petroleum '(46) and Royal Dutch (38). EDMUND W. TABELL Dow-Jones Ind. 585.00 WALSTON & CO. INC. Dow-Jones Rails 121. 83 Thie market letter is not. and under no CIrcumstances is to be COtlBtrued as, an ofter to sell or a solicitation to buy any securttie!l referred to herein. The Information contained herein is not guaranteed as to accuracy or completeness and the furnishmg thereof 18 not, and under no cireumstances is to be construed as, a representa- tion by Walston & Co, Inc. AU of opimon are subject to ehange without notiee. Walston & Co., Ine, and Offieel'8, Dlreetol'8, Stoekbolders and Employees thereof, purebnse, sell and may have an mterest In the securities mentioned herein This market letter is mtended and presented merely as a general, informal eommentary on day to day market news an4 not as a eomplete analysts Additional Information with regpeet to any securities referred to berein will be furnished uJ))n request. WN 301 tl

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