Tabell’s Market Letter – May 03, 1968

W—a-lslntocn.&–C-o-. Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER May 3, 1968 The thought has often been expressed by various writers that the study of the stock market action is, albeit indirectly, the study of human psychology. It is, of course, the study of man's behavior as a group, rather than individually, but, en masse, the collectivity of investors who cause the day to day fluctuations on securities exchanges displays a great many typical human emotions, hope, greed and fear being among the most common. Still another emotional trait which the stock market seems capable of exhibiting, especially latel is the conditioned reflex. It is now necessary only to breathe the magic word peace and we are, once more, off to the races. This trait was exhibited on Friday morning as Hanoi'.s acceptance of Paris as a peace-talksite sparked an eleven-point rally-in the Dow. It was, of course, doubtful, conSidering the short-term overbought condition of the market, whether a major rally was, in fact, sustainable, and this one, indeed, was not — almost all of the gains having been given up shortly before the close. Nonetheless, the Dow was able to show a small plus sign for the day. The rally, which capped a string of ten successive advancing days and brought the Dow to an intra-day high of 935.68 was not,however, without its significance. During Friday' trading the Dow moved decisively out of the trading range between, roughly, 825 and 915, in which it had held since the Fall of 1967. This area must now be presumed to be an interme- diate-term base with possible upside objectives centered around the area of 980. Parallel action took place in the Dow-Jones Rails with the upside objective for the carriers approxi- mately in the 256-261 range as opposed to Friday's close of 240,46. Thus, while short- term vulnerability has perhaps been moderately fies, it seems to us, an improved intermediate-term inve Blarket strength signi- Our Recommended List has, over recent m er large and there are a number of issles which we shall probably add 0 e list any short-term weakness that takes place. We are, therefore, taking st gth as an opportunity to remove thirteen issues from the list. A few f th e 0 sub tial profits from the time of reco mendation; while OfKersshow 'n these 'latter- cases, questiona15leriear term technical action makes switch into other issues n the's vm consideration to accept these losses and re immediate attraction. We have tabulated be- low the price perfor n 's eing removed since December 31, 1964, the base date for our Reco rds, showing their percentage change since that time versus the performa eft ow. There were 158 recommendations made over the perio Of these, 110 have adva and 48 declined. A complete performance record of the list is available from yo alston Account Executive, and an up-to-date copy of the list, to- gether with current comments, will be available early next week, Obviously, no implication is made that such results could be obtained by purchase of issues in the Recommended List, or that similar results will be obtained by purchase in the future. Commissions are not included. Stock List Date Price Current Recom. Recom. Price Change DJIA Change Same Time Perio Ampex Anaconda Columbia Br. Eaton, Yale Shell Oil Price Apprec. Price Apprec. Quality L. T. Price Apprec. Price Apprec. 6/30/67 36 1/8 9/8/67 493/8 11/18/66 57 12/31/64 21 12/31/64 -591/2 32 1/4 45 1/8 58 5/8 33 1/4 67 1/4 -11 9 3 -54 '1–13 7 1 14 5 – 5—— Signode Corp. Price Apprec. 12/31/64 27 1/4 37 36 5 Scoville Mfg. Price Apprec. Syntex Speculative Tektronix Price Apprec. United Fruit Price Apprec. Vulcan Mat. Speculative Varian Assoc. Speculative Wallace & T. Price Apprec. adjusted. Dow-Jones Ind. 919. 21 Dow-Jones Rails 240.46 5/5/67 42 3/17/67 93 1/8 3/17/67 401/8 12/31/64 175/8 12/31/64 173/8 12/31/64 13 40 75 47 1/4 58 217/8 27 5 – 21 18 229 26 108 8/2/65 32 36 5/8 AVERAGE 14 35 ANTHONY W. TABELL WALSTON & CO. INC. 1 6 6 5 5 5 4 5 Thill market letter Is published for your convemence and informat1On Rl'ld IS not an offer to sell or 1\ 8ohcltatlon to buy Rny secUritIes l,lLscus8ed, The m. A formAtion was obtained from BOurces we beheve to be rehabl but we do not guarantee Its have an interest In or purchase and sell the seeurltlcs referred to herein Walston & Co Inc. and Its officers. directors or ……. WNBOI