Viewing Month: November 1963

Tabell’s Market Letter – November 01, 1963

Tabell’s Market Letter – November 01, 1963

Tabell's Market Letter - November 01, 1963
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Walston &Co. Inc. Melllle, ,YeH' York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFices COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER November 1, 1963 …The. Dow,Jor.J.e.sJndustr.ial av.er.age-reached.a new intra-day high of 767.24 on Tuesday, but our long term breadth index failed to confirm the rise. This is the first major breadth divergence that has occurred since the advance from the Cuban crisis lows of October, 1962, and indicates a more cautious attitude toward the market over the intermediate term. These major divergences between breadth and the market averages have been very helpful in the past. Only four have occurred since 1956. The warning signal is usually given quite some time before the market actually declines. For example, our long term breadth index gave a warning signal in August, 1961 when the Industrial average was selling around the 720 level. The average continued to move ahead moderately and reached an ultimate top in December, 1961 at 741, and did not actually turn Clown sharply until'Aprilor'1962 to reach a low of 525. Thus, there was plenty of opportunity to sell on strength. The same thing oc- curred in early 1959. Our breadth index gave a warning signal in April when the Industrial average was around the 625 level after a rise from 420 in late 1957. The average continued its advance to 685 in August and reached this level again in the first week of 1960 before the start of the decline to 565 in October 1960. Here again there was ample opportunity to sell on strength. The warning signal given in August 1956 was not followed by a new high in the averages, but the April 1956 high of 524.37 was approached again at 523.11 in June, 1957. It was over a year after the warning signal was given before the market turned down to reach a low of 420 in October, 1957. The pattern today could follow somewhat the same format as the three previous instan ces outlined above, but the timing will probably be quite the moment there is no indication of a major top and individual stocks still indi t t ssibility of new highs. The deviation signal indicates a loss of momentum r swing that has last d sixteen months and has advanced 45 as measured gradual program of lightening intermediate term tr' verage. It suggests a 0 ength. The long term in- /I vestor, not concerned with temporarily peno n the markets, should maintain his .position selected Sl,der, will probably have numerous on the upside and downside. , As far as the longer f is concerned, we continue to maintain a constructive attitude. h at the market is in a broad reaccumulatim area as far as most indO id I s r ncerned. It is difficult to relate this pattern to the ac- tion of the various r s. As we have stated before, the market reached its high, as measured by the In r verage, in December, 1961, but individual issues were topping out in a five-year perio etween 1956 and 1961. The market, as measured by individual issues, did not reach s low in May-June 1962 and quickly form a broad base. Base patterns have been forming in individual stocks for a three-year period between 1960 and 1963. Indi- vidual stocks are in different stages of development, but long term constructive patterns pre dominate. It is probable that the base patterns need broadening in many cases and the result will be a continued consolidation in terms of the Industrial average. The range so far in 1963 has been 767 high and 656 low. From a technical viewpoint, the Industrial average has reached its upside potential of 760. In order to indicate much higher levels at the moment, a new pattern will have to be formed. With the advance now in a mature stage, and with breadt action showing deterioration, it is possible that the Industrial average will move toward the lower level of the 1963 range. A normal one-third to one-half technical correction of the ad- vance from the July low of 685 would brmg the Industrial average back to 740-725. A com- plete correction of the entire advance from the May-June low of 525 to 767 would result in a decline to 685- 645. Continued diversity will occur as far as individual issues are concerned. In the presen phase of the market pattern, it would seem advisable to build up some 'cash reserves as up- side objectives are reached. For example, General Motors (86 7/8) had an upside objective of 88 and reached 91 3/8. International Busmess Machmes (488 1/2) had an upside objective of 500-550. It reached the lower part of this area dunng the past week. Both stocks, which were advised for purchase in June 1962, are removed from our recommended list. A com- pletely revised list, with current changes, will be obtainable from Account Executives late next week. ………. -,,)AY- Dow-Jon,es Ind. 753. 73 Dow-Jones Rails 170.56 EDMUND W. TABELL -WALSTON & CO. INC. ThiS market Jctter not. Dnd no CI1'cum;lnnces I! to be construed nb, an nffct tn '1ell 01 tl ….heilatln tu nny o;eelllitle., I CfCl1 ell 'ttl herem The mCnl mnhon CDntnmed herem is not ).tunrnntced n'l to llCCUfllCY or find the flu ni-.hllll! (heleuf nut. fino tIllltet no tlICIlIn'ltnnt'e to bc ctmtllwd a, II leplc,,cnta- lion by Wlliston & Co, InL All C'l(pre;j(ln of upmiun nrc lubJcct to chau!!c w,th,,t 110tltC Wah.ton & CIl, lnl. IIlld Officer, unt! Employees th(!reof, IlUlehase, sell and mny hav(! In mterest III the mcnt101ned hel elll Th,.., mal het Jettel I Intended and Ilre..,enletl merely a., a t.!cnerlli mformal commentnry on tlay to day market news and nut a a complete unaly… Ad.l1twnnlll1f01nwtllm Ith le-lleet to .IllY e(ll1cb lefLllceI to helem Will be furmllhed uPon request \\.\

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Tabell’s Market Letter – November 06, 1963

Tabell’s Market Letter – November 06, 1963

Tabell's Market Letter - November 06, 1963
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Walston &Co. Inc. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFices COAST TO COAST AND OVERSEAS EDMUND W. lABEll'S RECOMMENDED LIST QUALITY & LONG TERM GROWTH Close Qual- 11/4/63 !!Y Comment Caterpillar Tract. 46 5/8 A Hold Corning Glass 196 1/2 A Hold for 250 Crown Zellerbach 52 5/8 A- Hold for 60 DuPont 251 AI- Hold Gulf Oil 47 3/8 A Buy at 42 Minn. Mining Penney, J. C. Royal Dutch Stand. Oil N. J. Woolworth Close Qual- 11/4/63 J!L Comment 65 5/8 A Hold for 7!H10 44 7/8 A Hold 45 5/8 A Buy at 40 72 A Buy at 65-62 75 A- Hold PRICE APPRECIATION Close Qual- 11/4/63 2.!L Comment Atchison, Top. SF 28 1/4 A- Buy at 28 Beauhit Corp. 27 3/8 B Buy at 27-25 Burlington Ind 40 1/4 B Holdfor 45-50 Cenco Inst. 49 5/8 B Buy at 45 Clark Equipment 43 3/4 A- Buy at 40-38 Cluett, Peabody 55 1/2 13 Buy at 50 Consol. Coal 48 3/4 A- Buy at 45 Copper Range 24 1 8 B Buy at 21 Denver, Rio Grande 21 1/2 B Buy at 20 Disney, Walt 42 7/8 B Buy at 40-38 Ex-CeU-O 37 3/8 A Buy at 36 First Charter Fin. 34 7/8 Hold Fruehauf Trailer 28 1/4 B Buy at 26 Int'l Min Chern. 63 3/4 B Buy at 58-56 Kansas City So.Ind 42 3/4 A- Buy at 40-38 Kerr McGee 37 3/4 A- Buy at 34- 32 Korvette Close Qual- 11/4/63 .!!L Comment 37 5/8 – Buy at 33-30 Litton Ind 80 B Buy at 75-70 McDermott 23 5/8 Buy at 22-21 Midland-Ross 60 1/8 B Buy-Hold Newmont Min. 88 1/4 A- Hold Pittston Co 60 B Buy at 55 Raytheon Co 23 1/4 Buy at 20-18 Reynolds Metal 31 7/8 B Buy at 30-28 Schlumberger 61 Buy at 54-52 Stevens, J. P. 33' 7/8 B Buy at 32-30 Storer Broad. 41 1/2 B Buy at 38-36 Sundstrand 22 1/4 B Buy at 21-20 Swingline A 37 1/4 Buy at 36-34 Union Bag-Camp 40 B Buy at 38 United Fruit 21 3/8 B Buy at 21-20 U. S. Plywood 60 3/4 A- Buy at 55 Univ. Oil Prod. 31 7/8 B Buy at 30-28 LOW-PRICED SPECULA TIVE Close Qual- Audio Devices 11/4/63 .i.!L Comment 12 5/8 B- Hold Braniff Airways 11 5/8 B Hold Campbell Chibou. 3 C Hold El Paso Nat! Gas 17 5/8 B Buy at 17-16 Foote Mineral 11 5/8 B Buy at 10 Great West. Fin. 17 3/8 Hold Hewlett Packard 19 7/8 B Buy at 20-18 Intern'l Packers 13 3/4 B- Hold Mesabi Trust 13 1/2 Hold for Income Close Qual- 11/4/63 i!,L Comment Microwave 11 3/4 B Buy at 11-10 Murphy Corp. 19 1/4 Hold for 25 National Can 14 5/8 B- Buy Pacific Pete 11 B- Buy at 11-10 Penn R. R. 19 7/8 B- Buy at 19-18 Reeves Bros. 15 7/8 B Buy at 15-14 W.Air. 51/8 C Buy at 5 Sperry Rand 17 1/8 B Buy at 16-15 Univ. Match 15 B Buy at 14 Varian Assoc. 19 5/8 B Buy at 18 The following stocks have been removed from our Recommended List since its publication on September 10, 1963' Air Products, Burroughs, Electric Storage Battery, General Mills, General Motors, Great Northern Paper, International Business Mach., Kern County Land, McKesson & Robbins, Northwest Airlines and Stewart Warner. November 6, 1963 ThiS Uullctm IS not and under no Cllcumstanc('S IS to be construed a,. an (lffet to 01 a to lmy any securities rererred to herem The informatIOn con- tained herem IS not'uuaranteed as to accuracy or l'lnd the rurnn,hlnl! thereor not, and under no circumstances to be conetrued as, a representatlOn by Walston & Co ne All cxprc,,,,ions of opinion al e !ubJect to Without n(lUre Wnlston & CD, Inc, and Officers, DlrC'etors, St(lekholders and Employees thereof purchnse sell and nlay have nn mterest m the securities mentloTIe(1 herem lIullctm mtended Bnd preqented merely as a general, informal commen- tary and not as n 'complete analYSIS Additional InforrnntlOn With respect to flny secul itlb referred to herem will be furntshed opon reque!t '''-916

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Tabell’s Market Letter – November 08, 1963

Tabell’s Market Letter – November 08, 1963

Tabell's Market Letter - November 08, 1963
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Wdlston &Co. —-Inc —– J/rlllllr,., Xrl( rnll. Sf()ck E.rchul1.Qe NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OF-FICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER November 8, 1963 '. days'of tlfefovr-day trading week and then par- tially recovered the earlier losses in the two final days. The intra-day low on the Dow-Jones Industrials for the week was reached on Wednesday at 738.41. Breadth action continued its deterlorating pattern. The short term breadth index has been in a downtrend since early September. Figures are not available for this week's long term breadth index, but the index probably declined below its September low even though the Industrial average held above the September low of 728. 63. This would indicate that the long term breadth index is also in a downtrend. The upside .objective of 7 60 is– probable that the general market has to move to a lower level and form a new base before the uptrend is resumed. We believe the decline will be corrective in nature rather than a broad liquidating movement like 1962. It will probably take the form of a normal technical correction of the sixteen-month advance from the May, 1962 lows. Such technical corrections usually retrace a third to a half of the preceding advance. Quite a few stocks have for.med poten- tial tops and the downside indications coincide with the normal one-third to one-half retrace- ment pattern. This is probably a more useful yardsbck in arriving at a downside projection and buying levels than in attempting a price projection On the averages. The net result of such a decline would be a broadening of the base pattern and eventually higher upside object- ives over the longer term Our latest Recommended List is available from your Account Executive. We have eliminated a number of issues and noted buying points on other issues noe on the recommended list, but which would b a aOe listing below some a ne-third to one-half retracement of the advance from the 1962 low column. The other columns are self-explanatory. It i are available at yields above 4 and also are se . g n b yin nge is in the last erest' 0 note how many issues t ' 10-year average Price- Earnings ratio. Amerada Petroleum 3 Amer. Home Prod. Ashland Oil 0 Borg Warner 8 Container Corp. Eaton Mfg. 36 General Cable 61 General Electric 81 Hooker Chemical 37 Libbey-Owens – Ford 54 Norfolk & Western 114 Pure Oil 42 Southern Railway 60 3. 97 1. 69 3.02 3.91 3. 10 1. 83 3. 54 9.16 3. 16 4. 98 1/3 to 1/2 Dividend Yield Correction 2. 00 2.7 68 -61 26 20.0 1. 57 2. 4 58 -55 13 10.4 1. 20 4.0 27 -25 12 11. 0 2.00 4. 1 46 -43 19 13 1 1. 00 3.0 29 -26 12 11 3 1. 80 5.0 36 -34 14 11.0 2.00 3. 4 51 -46 26 23. 3 2.00 2.4 75 -70 20 21. 7 1. 10 3. 0 35 -33 16 13.9 2.60 4.8 52 -50 12 10.0 5.50 4.8 112 -105 14 10.2 1. 60 3.8 42 -39 12 9.0 2.80 4. 6 60 -56 GRA)E Amer. Metal Prod. 19 American Radiator 17 Consol. Mining 27 Copperweld Steel 41 Hammermill Paper 36 Illinois Central Massey- Ferguson 51 16 Rayonier 30 JUegel Paper 34 Scoville Mfg.. .' 'lle 1.34 . Warner Swasey 69 Dow-Jones Ind. 750.81 Dow-Jones Rails 171. 80 1. 86 1. 44 1. 39 2. 66 2. 30 6.47 1. 63 2.01 2.27 2.333 5.89 11 11.0 12 11.6 19 18.1 15 12. 1 1. 00 .80 1. 20 2.00 5 2 19 -18 4. 7 16 -15 4.4 24 -23 4. 8 37 -35 16 12. 3 8 8.2 10 9. 1 1. 20 2.00 .50 3.3 33 -32 3 9 49 -45 3. 1 14 -13 15 11. 9 15 13. 2 14 12. 1 11 8. 3 1. 00 1. 20 1. 20 1. 85 3. 3 28 -25 3 5 32 -30 3 5 28-26 2. 6 63 -54 EDMUND W. TABELL WALSTON & CO. INC. Thl!l market Jettel is not. ami unde! no ClfCl11ll5tnnces 1' to he cnn ..llllefl ns. nn offci In ,,111 01 n sohcltutlUrl to hllY lin) ,'CUI I ('fen Cillo hel ('In The mC,,! mntlnn ('ollinmed heicin \.. nut j..(lIulnntC('IIIU! to IlC'lll ncy or cnmlllctcnc,s lind the fin thel ('If nut, nnrl \\I11\el 1111 I'HClllllstllntes to be ned I, n. tl.on by \Ialton & Co, In.. All uf U)HnUln nil' … to ehm!.c \\Itlwut nll\1.e, & C, Inc, nn,1 OffleCl…. , DucttOlIo nnd thereof. )lulchIlSI', sell nntl mny hnvc nn Interest In the 'CCUrltlc mcnll.IlCI\ hclClll fhl mad,et IcHel Ill IOtenlleo.l nnll precntetl mel ely us n gcneral mrurmoll'ommentalY nn tiny to day murkd all.1 not lUI n complete A.I.htumnllnCulfllotlJn ….. ,th 1(''')'I'(t to ,m)' I'I'UI1tl(,,, IcCellcti tu hClelll willtle flU nJ'Ihc1l IIpon requcst \\.\ ,01 – –

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Tabell’s Market Letter – November 15, 1963

Tabell’s Market Letter – November 15, 1963

Tabell's Market Letter - November 15, 1963
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Walston &Co. – Inc —..;… MemleI'H Xell' rol'l, Stock E.1Cila!1ge NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OffiCES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER November 15, 1963 fllt At Friday's intra-day low of 737.90, the Dow-Jones Industrials dropped below the November 6th low of 738.41. The potential top formed at the 760-745 level indicates a possible decline to the 720-710 area. In recent weeks, a handful of stocks were furnishing most of the trading activity and price movement, while the bulk of the market moved back and forth in a desultory fashion. The result was a continued deterioration in market breadth. The longer term breadth in- dices are joining the downward trend of the shorter term graphs. On our graphs of the twenty-five moving totals of and declines, the declines now outnumber the advances. On the even longer term 200 -day moving average of advances and declines, the declines are very near to outnumbering advances. This obviously means that it is be- coming increasingly difficult to find issues in an uptrend. This is the usual pattern when an advance reaches a mature stage and is in need of correction. The 242-point advance from the June, 1962 intra-day low of 524. 55 to the October high of 767.24 is sixteen months old. The percentage advance has been 450/0. At the re- cent high, the Industrial average had reached the 760-770 potential outlined in our tech- nical work. It would appear that the market now needs a technical correction in order to build a new base for a subsequent advance. As mentioned in last week's letter, a number of issues have formed potential tops with downside indications equal to about a third to a half retracement of the advance from the June, 1962 lows highs. In terms of the Dow-Jones Industrials, this would indicate a possible cli t 685-645 level. At the moment; there is no indication of a decline a e ut pattern could broaden. A decline of a third to a half of the advs;Wrom-LL 'June, 1962 lows would be nor- mal technical correction. ILwould s in individual stocks and place the market in a position to resume thS a date. It has been our long term reasoning that most time during 1956 to 1961, and a major bottom in 6 6 nd are now in a reaccumulation period prior to higher levels la h s. e possible corrective move over the near future will result in a bro t eaccumulation area. Any decline from recent high will probably take place in several stages, rather than in any broad dow ard movement. The present decline could terminate around the 725-710 range. Our shorter term indicators have not yet reached oversold territory, but probably would if the above levels are reached. This would probably be followed by a year-end rally that might carry the averages back to the upper part of the range. Of course, individual issues will follow a different pattern than that of the averages. Some stocks may reach their lows in the very near future, while others may not reach their lows until much later. The probable enactment of a tax reduction bill some time in 1964 will probably con- tinue to exert a ma rket influence. If such a bill is enacted in its present form, a tax loss will be more valuable in 1963 than in 1964 because of the present higher tax rate. On the other be advisable to hold off profit-taking until 1964. This could result in further pressure on the depressed issues selling near their 1962 lows. This would include sllch groups as Aerospace, Cosmetics, Machinery, Motion Pictures, Tobacco, Vending Machines, and some of the more speculative Electronics issues. Re- lease of this selling pressure in December could result in a technical trading rally. On the other side of the coin, profit-taking in the issues that have had sharp price advances may be a factor early in 1964. Dow-Jones Ind. 740.00 Dow-Jones Rails 172. 34 EDMUND W. TABELL WALSTON & CO. INC. Thl-l mil' ket Icttel i'l not lind undcl no circumstances ,,, to be con.,tl ued liS, nn oITe! to ..ell OJ II hcltntLUIl ttl bllY nn)' CCUI 1efell etl tn hel em The In(o, mnlum I)ntlllnc,l hereIn is not l!unrnntccd llS to IlCCl11ncy 01 complctenc-. nno th(' fm nhln\! IhN('r . Iwl, nn.1 11111\('1 11 ell CIIIY\.,tnIHe., 1 to he (111.,t. lied II. ,\ Il'P1C.,ClIlll- tum hy WHIston l.. Co. Inc All eX)lreSlUn tlf 11JnlOn Ille uhJelt ttl rhullJ!e \\Jthnllt lw\JLe Waltun & C, JnL, !lml OfrlN!I …. ()ueLll Stud,holdel an.1 Emll\uyees thereof, II\l\chn'le, sell and may hlne nn IIltC1C'ot III the …eelllltie. mentu ned helem Thl mn,ket \eHel l'i lIltendet! .IIHI l'rc…cntcd melcl) n'! n g-cnl'I.1i lIlfurmui ('f'mmcntnlY on dn)' to ,lay markc-t allli nut II n comllicte nnUhf,l Adllllwllni IIlrlmntJOn \\Ith 1&1l'I't tl nny Cl'IIlJtJe ldcI1Coi tu heJeln wdl he fllt u,pun requcst \\.' ;U1

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Tabell’s Market Letter – November 22, 1963

Tabell’s Market Letter – November 22, 1963

Tabell's Market Letter - November 22, 1963
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— – – – – – – – – – — Walston &- Co. —–Inc —– .liem/), ,Yew Ynrk Stock E.,.chall!l NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST AND OVERSEAS CHICAGO TABEll'S MARKET lETTER November 22, 1963 ALE The following wire was sent to the Walston offices on Friday afternoon. The tragic happening of today has, of course, distorted the normal trend of the market. There are a number of uncertainties such as the effect on foreign markets and the possibility of forced liquidation that make it difficult to project the extent of any further decline until Monday. However, it must be remembered that the market, from a technical viewpoint,had indicated a loss of momentum and an intermediate downtrend before this unfortunate event occurred. The immediate effect will be an acceleration of the downtrend from a timing viewplint, rather than a lowering of the ultimate downside ob- jective. r0 , Last week's letter a 0 0 -710 for the near term. This was reached at of 710.83. It is doubtful whether this point wN 'lllate downside objective for the averages was a from the 1962 low. This would own to 685-645. We see no reason to change this irely possible that the averages themselves will not go that low. We would be inclined to consider the 700-650 level as a buying area and in blue chip individual stocks we would consider a onethird to one-half retracement as a buying level. There is not much more that can be said at the moment. The main thought we are trying to convey is that a further decline to the levels mentioned above would, in our opinion, present a long term buying opportunity. Dow-Jones Ind. 711. 49 Dow-Jones Rails 166.41 EDMUND W. TABELL WALSTON & CO. INC. 1'h,., mnrkct ICtt('l not. and UII(lel no cIrcumstances '0 he cnn..,t,lIcn 1111 Ilffel In -.('11 01 fl ..l,cltntlln to 1'11) ,111), ('CllIllle., I e(cll cd til h(,I('111 The lnf01 n1nl111I (ontnltle,1 hereIn is nt l!u,llnntced n; to IKCl1lfll III ..s and the fUllU..,hwl! ' lIt. lind uII,lel 110 lIl,um..tlullC.. h to be (ou.. t,ucd .1 1('1le..(nl,- lion hv '\'IIston & Co, InC' All (''''IHeSSlonb uf UPIllH11l ale ubJcct to Ch,LIlj!C \\Illwllt mIllIe ,'nl..t,,n & Ct, Inc I1lul Office,… StmJ..hI,lc'h nlHI Employee thereof, l)l1l('hase, bell nn may nil mtcle;t III th!' ..('('mille' tl1cntwlH'll helcHI flll'. mll,l..el leltel ,,, lIltcndcd ulld ple'cntcd mel ely ., .. ,\ )!cnl,,1 ltlf,,'IlIUI f'ummentll (011 dl1)1 to Iiny 1ll,lIke! lIew nnd lIDt m! a complete Ac!.htlll.d Ilifolmntltln \\llh I ,III), .. I f(.1 led 10 h('I(1I1 \\111 h flll Il,J)on request \\ ,1)1

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Tabell’s Market Letter – November 29, 1963

Tabell’s Market Letter – November 29, 1963

Tabell's Market Letter - November 29, 1963
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. – Walston &- Co. —–lnc —– Mcmler8 XCII' 'o,-k Sloe/; Exchange — – NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER November 29, 1963 In just two trading days the Dow-Jones Industrial average traversed a price range that we had previously believed would take two months to accomplish. On Friday, November 22nd, the tragic news of President Kennedy's death resulted in a panicky wave of selling that carried the Industrial average down twenty-one points before trading was halted. At the intra-day low of 710.83, the Industrials reached the lower part of the 720-710 area mentione! in our November 15th letter as the possible downside potential of the top formed in the 760- 745 area. Also, at this point, our short term rate of change graphs of both price and breadth entered oversold territory. At Friday's close it appeared doubtful that the 710 level would hold, but on Tuesday, November 26th, the market opened sharply higher and there was no opportunity to buy the leaaing issues at anywiierenearthe iciwiof the previous Friday when the closing price on the Industrial average was 711. 49. The opening level of the Dow-Jones Industrial average on Tuesday was twenty-seven points higher at 738.43. In fact, the opening level on Tuesday was higher than the closing on the previous Thursday before Mr. Kennedy's assassination. The rapidity of the rise probably calls for a consolidating area and the forma- tion of a new pattern. From a technical viewpoint, all objectives have been reached. The 770-760 upside objective was reached at the late October intra-day high of 767.24, and the downside potential of 720-710 was reached at the November 22nd low of 710.83. Before any great price changes are indicated, it would appear that, from a technical viewpoint, a new pattern must be formed. This could result in the formation of a new base pattern in about the 730-750 area, or a broadening of the top in the 760-740 area. For the shorter term, the 728 level is an important technical point to watch the Industrial average. This level was, of course, penetra e 0 the September low on dgw side in the selling awave of November 22nd, but considering the tragic c e n and the quick re- covery to the 752.39 level this week, a second penet of e level would indicate the resumption of the downtrend that was in un unate happenings of the past week. Breadth action began to deteriorate in ber was confirmed in late October nt ut ourbreadth- index failed to con– firm the advance. This was divergence since the start of the advance from the June, 1962 lows. Thi n has been confirmed by the technical action of the not reverse the pa 0 n oth price and depth. These are indicators that do n . would be normal action to expect an eventual continua- tion of the downtren . e stated before, we believe the market is in a broad consoli- dating area that will ev ntu result in much higher levels over the longer term, but time will be needed to comp the pattern. The 1963 range for the Dow-Jones Industrial average so far has been 767.24 for the high and 656.66 for the low. We would expect the market to remain roughly within the confines of these two extremes for the foreseeable future. We woul be a buyer as the lower level is approached and would lighten commitments and build up som cash reserve when the upper level is approached. There will, of course, be selective price action by individual issues. In our letter 0 November 8th we mentioned buying ranges on twenty-four issues. Of these, fourteen reached the upper part of the buying range at last week's low. Probably it would have been impossible to have bought most of these unless open orders had been entered previously, but we are in- cluding them in our recommended list. Price Buying 11/29/63 Range Amerada Petroleum 70 1/4 68-61 Amer. Home Prod. 605/8 58-55 Borg Warner 47 46-43 Eaton Mfg. 35 7/8 36-34 General Electric 82 1/2 75-70 Libbey-Owens Ford 52 1/8 52-50 Norfolk & Western 112 1/2 112-105 Pure Oil Southern Rwy Amer. Metal Prod. Amer. Radiator Copperweld Steel Illinois Central Rayonier Price 11/29/63 40 1/4 61 18 7/8 16 7/8 39 1/2 50 1/4 29 Buying Range 42 – 39 60 – 56 19 – 18 16 – 15 37 – 35 49 – 45 28 – 25 Dow-Jones Ind. 750.52 Dow-Jones Rails 171. 85 EDMUND W. TABELL WALSTON & CO. INC. ThIS market letter tS not. and under no clrcumstnnces IS to he con'ltll1e.1 UB, fln nffel tn ,,(!Il 1)1 !' t Ilny IH!C\llllie I dell ell t(1 hel Cln The info) matmn ('untnlned herem IS not J!unrnntC'Cd as to accurncy ot ano the f\1I m ..hllll! thet cur nClt, and undcl 11() ('II IS to be ('I11tl ued as, 1I rell! c–cntu. lIon hy Walston & Co, Inc All exprc'!'lOns of opinIOn nIl' ,uhJect tu chun)!e \\llh..ut lIutice, & Cu, 1m', alII Offleel DnectUls, Stuch.hul(len, allfl o'mplo)'ecs thereof, pUI'chase, sell lind muy hllvc an Interest In the ecllrlllcq mClltlllllcl1 heiC11I Illlllkct leltel Intended lind prccntcrl mercly II., a J,!enel..ll, IIlformal commentary on day to day m..lrket news and not as a complete nllniYlq AlldltlJnuilllfUlmnl101l \\Ith 1(Illeel to 1I1l) .,eelllllle;, lerL'll('l to helelll WII' ,he furmshed upon request \\'\ ,01 \

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