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W—-a–l-s-tIonnc–&—C–o-. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER April 17, 1970 Recent weekly closes for two widely held stocks, Westinghouse and Xerox, describe recent stock market action far better than any volume of text we could produce. 1/30 2/6 2/13 2/20 2/27 .ll6 3/13 3/20 lJ.l. 4/3 4/10 4/17 WX 55 1/4,56 5/8,597/8,61 3/4,607/8,65 1/2,655/8,63 3/8, 67,6'6 1/4,66 1/2, 68 1/ B XRX 1005/8,1025/8,973/4,985/8,91, 933/4,901/4,903/8, 94,87, 861/2, 84 7/8 Diversity, in short, has been unusual. Since the beginning of the year we have seen sharp recent declines in many 1969 market favontes (Xerox' performance is outstanding com in …l!ad ions in early 1969 (Westinghouse had been down from almost80 to a low of -54 r – – – Of late, unfortunately, most issues have shown price action more similar to that of Xerox than Westmghouse, with the result that the Dow, which had been holding up better than most individual stocks, finally violated the uptrend which it had maintained since the end of January. This violation makes it extremely difficult to become optimistic over the immediate future f()r the market. An extreme oversold condition exists which, when reversed, could provide a worthwhile rally. However, the market's early-April inability to rise above the 800 level and reverse its 15-month downtrend makes the immediate picture somewhat questionabl The bottom will inevitably come, of course, and it will come as more and more stock as Westinghouse has already done, reach downside obJectives, broaden out bases and com- mence moving upward. This very diversity, of course, proves the the market and con centrating on individual issues and portfolio upgrading. W 0 15elow,in this connectio our review of individual industry groups. PAPER – This group was one of the leaders lat early 1969 upswing, and since that time has been in a correctlOnary PhSalt h i e better issues the correct- ions have, generally, been on the mild side. e ort-t bases built up are, by now, substantial-;– and-whIle we national Paper (36 1/4), vaco (25) as buys on minor wea e ;aPHOTOGRAPH – n 0 tlO Inter–o— Sctt(331/2),Klmberly(711/2)andWest- \, (74 5/B) will probably continue its recent sidewise action, although th e e IS favorable. Polaroid (90 3/ B) is approaching its downside objective, w u refer to avoid the issue for the time being. RADIO – TV -I) st es in the group should be aVOided at this time. RAILROAD EQ NT – Car-leasing stocks, such as General American Transpor- – tation (395 B) and Trans Union (301/4) appear to be attractIve purchases. Outlook for the . others in the group is mixed. RETAILS – Generally an attractive group with a number of better quality issues show ing above-average relative strength. We would favor Federated (35 1/2), among the Depart- ment Stores, and FIrst National (36 1/ 4), Grand Union (2B 3/ B) and Safeway (27 1/8) among the Grocery Chains. RUBBER – Most issues have been in sharp downtrends and in many cases earnings estimates for 1970 have been lowered. We think the long-term outlook more interesting than recent action would indicate, but for the time being would avoid. STEELS – It is possible — Just possible — that this could be the sleeper group of 1970. Short-term'uptrends have quite clearly now been established in most of the major issues, and it remains to be seen whether they can follow through and post the long-term breakouts which would mdicate deciSively higher levels. TEXTILES – Many issues in thIS area have formed attractive bases since mid-1969, and we are favorably disposed toward American Enka (32 1/4), Burlington (41) and, on any further weakness, Duplan (24). TOBACCO – The quality Issues have returned to their mid-1969 lows and appear at- tractive buys for long-term investment. UTILITIES – We continue to rate this group as outstandingly attract ive, not only for investment accounts, but also, in the present market, for aggreSSive ones as well. In general, out of the large number of issues available, we tend to favor the relatively high-growth utilities, vis-a-vis the admittedly somewhat cheaper income producers. Dow-Jones Ind. 775.94 Dow-Jones Transp. 167 40 ANTHONY W. TABELL WALSTON & CO. INC. 'Ihls mnlket 1l'ttel IS I'ubh;;h…(! (.)r \OUI uld mformntl)n ,lIltl IS not ,111 offel to sell 01 I 'Oh'LlatlOn to ,ul) -.ccunllCS dllCU;,sd The In- formltlOn \\,1' ohtmnl.''I hom tOUH'!'-. \\(' he!'l\o to lw 1.1I.lble lout v.e .1 not IUnrrmtee Its .l.!'(urn('\ \'.nlslon &. Co, Inc, ,m,-i Its office.s. dlrecton. or etTIIJloycll rna) have nil Iflterest rn or purlh,u,c ar11 till' 'l'(Ulltll' r ('/1 (, …1 to herl'lfl. AW b WN-!