Tabell’s Market Letter – March 20, 1964

Tabell’s Market Letter – March 20, 1964

Tabell's Market Letter - March 20, 1964
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Walston &- Co. 1'0',- – – – – l n c – – – – – Member. Xell' Stock E'cilanle NEW YORK SAN FRANCISCO LOS ANGElES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER Fort Myers Beach, Florida March 20, 1964 Despite the fact that the various blue chip averages have reached newall-time high territory, a perusal of the graphs of over 1, 800 individual issues and groups continues to show an extremely diverse long term pattern. While some groups have followed the averages into new high territory, the majority are still holding in a broad price area bounded by the 1957-1961 highs and the 1960-1962 lows. It is our opinion that the eventual breakout of these long sidewise patterns will be on the upside. The immediate question is whether or not this will occur in the near future, or at al'laterdate. Since the 1962 lows, the important buyers have been institutional investors rather than the general public. For the advance to broaden out on a large scale that will encompass the entire market, much greater public participation ,than beJleeded. Whether the.puJlic.has..y.et.recov.er.ed.froxp.the…196.2 scare is problematical. This may require further -time and rriight be-precectectby a technicaf-' -.- correction that will enlarge the base patterns in many issues. This could result in a much higher price level in the late 1960 IS. With most groups at entirely different stages of their long term patterns, it might be interesting to review a number of the leading groups. AEROSPACE – Most issues in this group reached their highs in 1957 and are still sell- ing below those levels. No indication of an important move in either direction. AIRLINES – Reached their highs in 1957 and their lows in 1960. Most issues held above the 1960 lows in 1962. Have been one of the strongest groups, but have, in most cases, reach ed their upside objectives and need consolidation. ALUMINUMS – This group also reached its high in 1957 and is well below those levels at the moment. Appears to be building a strong base pattern that could result in much higher levels over the longer term. Buy on minor price declines. AUTOS – Peaked out in 1959, but held above the advance lnto new high territory, but probably needs consol ti Has had sharp pric BUILDING MATERIAL – Reached their highs – re below those levels. Appear to be building base patterns, but may take fur time. uld accumulate group on weakness. CHEMICALS – Reached their highs in lssues are still below those l-eve. ls.COLPoPnEgRtSe-rom.—oSutitllloobkel'ioswthe-nl5 . T – .. Q,Q . strong mtermeollite positIon.' DRUGS – Reached thei group. No over-all.patte n. ELECTRICAL E B -e in 1961. Diverse patterns within the .. ed highs in 1959 and leaders are still below those levels. n a roa rn and should be bought on price declines. ELECTRONI m 1961 and most issues are selling near 1962 lows. No immediate achon mdi te, base patterns are forming and selected issues could show wide appreciation at a la nate. FOOD – Reache ghs in 1961 and probably will continue in longer accumulation area. MACHINERY – Peaked out in 1959 and have formed strong base patterns with higher levels indicated. MACHINE TOOLS – Reached highs in 1957 and have formed very strong potential bases In a buying range. OFFICE EQUIPMENT – Reached highs with averages in 1961. Still below those levels. Appear to be in reaccumUIation area with interesting long term potentials. OILS – One of the strongest groups for the long term despite sharp rise. Buy on minor declines. PAPER – This group is still in a broad reaccumulation area with substantial higher upside potentials. RAILROADS – We believe this group is in a major trend reversal. It .has moved. above 1929 hlghs and still indicates.hlgher levels. be bought on all pnce- declme RUBBER – Still below 1959 hlghs and probably m a broad reaccumulatlOn area. SAVINGS & LOAN – Have had sharp decline from 1961 highs, but have formed substan- tial potential bases. An interesting speculation. STEELS – Could move higher over near term, but long term prospects vague. TOBACCO – A much better buy than sale, but patience may be required. UTILITIES – Have shown poor action recently, but would be a buy on declines. Dow-Jones Ind. 814.93 Dow-Jones Rails 193.47 EDMUND W. TABELL WALSTON & CO. INC. '1'1115 market letter is not. and undel no clrcums\..nnces l!o to be constilled ns. nn offci to .,(.11 ul n suliCLtntwll to 111) nn' (!'CUt I dell ed 1 hu ('In 1. he !nfm mntwn ('Illlwlrled herem IS not Auntnnl.'(!f\ns to ul;curncy ur ('unJllletclICob und the tum lIy Wniston & Co tnc All tlf nplTll1lTI fIlC .UhJClt to ch.IlII. thel 'uf nI, lind nll'\cI WIlhut l)ull.e Wahtn & cn.o.,LlJILilllIIll;,Itl.lldnl'C til ue um'-llued n-., II DIICLlI' StolhhuJdell 11))'\ hmllioyees thereof, pillchasc, sell and mny have an mtelesl)l) the IICClilltle- mentullwd hCI,in fhl mfllh.et Jettel I' Intended .md I'le..cnlcll mClely n-; n 1.('lIcI.II. lIlformal commentary on dny to day market ncws and not as n completc IJnniyh Alllllin.llmfUlmntwll ,qth IC''C('( to .Iny ,.,c('lIIlbc;, Tefl'lle,\ to hClem Will he fUlnl,hcu (won lcqucsl \\.\ luI

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