Tabell’s Market Letter – September 19, 1969

W—-a–l-s-tInocn—&–C–o–. Members New York Stock Exchange and Other Principal Slock and Commodity Exchanges I OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER September 19, 1969 The technical dilemma now facing the stock market should be quite clear by now to almost all investors. It is symbolized perfectly by the most-widely-looked-at single stock market chart — the one that appears on the next-to-the-last page of the Wall Street Journal, covering the three Dow-Jones Averages. As the chart quite clearly shows, since the low of July 29th, the Dow Industrials have held in a sideways trading range contained by, roughly, 800 on the downside and 840 on the upside. Three separate tests of the downside portion of this range occurred, and four separate tests of the upper part, including last week when the Dow spent most of its time bouncing against this temporarily impermeable Thechart oi.Jhe Dow-Jones Rails looks very much like the Industrials. – – ——- Whichever way this trading range is penetrated, the chart is going to look awfully good or awfully bad to the untutored eye, and we believe this is significant enough to indicat a rather quick move in either direction. The upside target for the Dow would be 875, and the downside target somewhere in the 785-775 ra.nge. While the direction of the immediate penetration is still in doubt, there is very little doubt that the trading range constitutes part of an ultimate base formation. The only question that remains is the ultima.te shape of the base. Here we are willing to let the mar- ket tell its own story. In such an environment, however, it is incumbent upon the investor to build up a fully invested position in those stocks which can be potential leaders on the upside. To as- sist in this task we are making, herewith, a number of ur Recommended List. We are removing from the list a number of issues whose e h i aRern has been damage by the 1969 decline, or where we think the issues being removed are as follows' t 1 is Po average. Those Quality & Long-Term Growth Amerada – – — — -Prlce Appreciation Air (39);- ved in exchange for Amerada 1/ d e . (27), Goodyear (28 5/8), Kraftco – s -( /2);-Winn–Bixie-(-3-3-7/8-). .., i..RMCluction (18), American Bakeries (13 1/4), (193/8), Great Northern Paper (54), '——r- , We are ii .' additions to the list, but are suggesting buy pomts for 24 issues which wil tom ally added to the list if those buy points are reached. This strategy is in line wit th ssibility that a further extension of the trading range may brin these lssues down to e attractive buying levels. Should an upside breakout take place, of course, we will revise this strategy and suggest immediate purchase of a number of issues. We will duly notify our readers of such a change in this letter. Quality & Long-Term Growth Stock Buy Level Stock Buy Lev Int'l Bus. Mach. 340 Squibb Beech-Nut 55 Merck 95 Sears Roebuck 66 Nat'l Cash Reg. 140 Union Carbide 41 Procter & Gamble 95 Price Appreciation Stock Buy Level Stock Buy Leve Alberto Culver 45 Culligan, Inc. 22 Atlas Chemical 27 Faberge, Inc. 32 Amer. Hosp.Supply 38 Grolier, Inc. 32 AMP, Inc. 47 Hewlett-Packard 90 Big 3 Ind. Gas 44 Carter Wallace 27 Speculative Price Appreciation Stock Buy Level Capitol Ind. 41 Dixilyn Corp. 28 i I Great West. Fm. 25 Pittston Times Mirror Stock. Memorex Tishman Realty 65 44 BUy Level 92 30 Those issues which are ultimatel y added to the Itst will be reviewed in subsequent issues of this letter. Dow-Jones Ind. 830.39 Dow-Jones Rails 200. 35 ANTHONY W. TABELL WALSTON & CO. INC. ThIS mnl'hM httl!l' 15 Iubhsh(d fot )Oll/ nn(1 lllfollnnllon and ,'- not an aIT'-'J formatIon was obtamed from we 1…1Ll'v' to he lell!!h1. hut We do not emptoyees may have an Interest Ln or pureha;e Rutl !.ell the '\',UlltW' Ifrclred to herein to sell 01 a '1011t'llRtlOn to bu) ,tn seCUrities dISCussed Its .I'cur.I(\ W.llton &. Co Inc Rnrl Its officel'; 'I'he In. OJ WN.aot