Tabell’s Market Letter – August 13, 1971

Tabell’s Market Letter – August 13, 1971

Tabell's Market Letter - August 13, 1971
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—————————————————————————————————————- TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW YORk STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE August 13, 1971 Anyone who looks only at the popular stock market averages has a fairly well-defined idea as to just what the stock market has done over the past year. From May, 1970 through April, 1971, the Dow scored 'I – ,anac'lvcmce of,jusLover50candhas,. in the.past three .monthsretracedoj!lsLbouJ the ,clasir ,i. of that advance. A closer look leads to two conclusions, (I) that the recent advance was, in actuality, more dynamic than that shown by the averages and, (2) that the subsequent decline has been, to date, a highly diverse affair. The following table shows the action of 99 S &P Industrial group averages In terms of their percentage advance from their 1970 low to their 1970-1971 high and the percentage of that advance retraced at recent levels. As the table shows, 69 of 99 groups have chalked up better advances than the averages. In terms of subsequent retracement, some groups have retraced their entire advance and are selling at new lows while others, so far, have hardly been affected by the one-third retracement in the averages. It Is an old Wall Street saw that the stocks to buy on a market tum are those which have gone down the most and those which have gone down the least and, like all such adages, it has an element of truth. Those naturally inclined toward bargain hunting can find numerous candidates in the table. On the other hand, those groups which have shown above-average strength in both the rising and falling cycles could, if that strength continues throughout the decline, be outstanding performers on the next market advance. !etrace- !etrace- Retrace- Adv. ment Adv. ment Adv. ment Aerospace 82 49 Meat Packing 65 6 Restaurants 144 12 Air Freight 126 49 Fackaged Foods 31 31 !etail Strs-Comp 72 19 Air Trans port 147 52 Forest Products 32 72 Department 82 19 Aluminum 32 Atomic Energy 95 93 Gold Mining 76 8 12 Home Furnishings 100 20 Discount Strs Food 133 5 39 4; Auto Parts 68 Alto Truck9-f6rts 79 Brewers 47 Distillers 28 Soft Drinks 55 Bldg Comp 50 Air Cond 39 Cement 63 Heating-Plumb 25 Roof-Wallbrd 63 Cbnt-ilk1al-Glas s 35 Cont-Paper 64 Copper 23 v m, 13 Lead-Zinc 18 91 28 Leisure Time 137 13 20 Machine Tools 55 53 41 J\;jricultural M3.ch 53 55 10 M3.chirery-Comp 24 15 27 Cbnst-Mat'l 71 30 19 Industrial 60 25 44 M1Serv 01 Well 109 11 149 Specialty 58 26 23 9eam Gen EqJip 119 26 72 M9talFabricating 78 41 40 M9tals Misc. 24 123 101 Mobile Homes 203 9 mau v.uc. Variety Shoes Soaps Steel Suga!'-Comp Beet Refiners Cane Refiners Sulphur Thxt-.'\pparel Mfrs Thxt-&ynth Fibers Text Products Tire-Rubber 1bbacco-Cig Mfrs 114 79 49 16 63 54 90 75 68 56 38 45 75 13 21 0 112 40 50 31 62 43 27 81 22 21 Cosmetics 63 Drugs 42 Eectrical Equip 61 Elatron M3j Cbs 78 Elec Hmse App 73 Electronics 89 Finance Cos 49 fuBll Loan ecs– 84 30 Motion Pictures 95 51 Toys 88 22 Office Equip 57 47 Truckers 128 21 Offshore Drilling 173 15 Vending Mach 87 33 Oil-Comp 54 27 Electric Cos 24 8 Crude Producers 125 6 N'lt'l Gas-Dist 30 48 DomIntegrated 5220 N'lt'l Gas-Pipe Ln 43 40 Int'l Integrated 49 29 Telephone 32 -33-Paper–' -'2!i-71–BankS-NYC – – – 38 63 0 8 46 32 38 69 – 60 Food-Composlte 35 Biscuit Bakers 42 Bread-Cake 120 Canned Foods 36 Com Refiners 35 Dairy Products 47 17 Pollution Control 92 21 27 Publishing 94 37 56 Fadio-1V-I3rdastelS 103 14 I Fadio-'lV-Mfrers 133 30 54 Railroad Equip 49 27 19 Real Estate Chemicals 79 42 52 63 Bituminous Coal 117 35 B.s-Outside NYC Sav-Loan bId Cbs Ins – Life Ins-Multi Line Ins-Prop-Liab Investment Cos Confectionery Conglomerates 44 88 50 50 90 24 60 95 32 39 21 12 6 54 21 41 The stock market made Its most convincing attempt so far to reverse the Intermediate downtrend with the Dow rallying from midweek to reach the 860 area early Friday. The deep oversold condition reached on Wednesday, the steepness of the rally, and the fact that one downside objective had been reached at the week's lows make an Intermediate term bottom at least plausible. In any case, however, a period of base building will be required, and we would prefer to observe this period before stating with certainty that the decline from the April highs had been permanently stemmed. Dow-Jones Industrial (1100 a. m.) 859.67 ANTHONY W. TABELL SeeP (lliQQ a;FR.) 96.99 ;QJ5LnJ'IEJ.Q, IIl\Wl'f, TABEbb AWeoT11ftement or expression of opInion or any oTher matter herein contained 1, or IS to be deemed to be, directly or indirectly, on offer or the sollcllol10n of on offer to' Ettiy or sell any secvrlty referred 10 or mentioned The moiler IS presented merely for the convenience of Ihe subscnber While we believe the sources of our Informa- tion to be rehable, we In no way represent or guarantee thc accuracy hereof nor of the statements mude herem Any aelion to be taken by the subSCriber should be hosed on hiS own investigation and mformatlon Janney Montgomery Scott, Inc, as a corporation, and Its offICers or employees, may now have, or may later fake, POSitiOns or trodes In respeel to ony secuntles mentioned In thIS or ony future Issue, ond such position may be different from any views now or hereafter expressed In Ihls or any olher Issue Janney Montgomery Scott, Inc, which 1 registered With the SEC as on Investment adVisor, may ,live adVice to lis Investment adviSOry and other customers Independently of ony statements mode In thiS or In any other luue Further mformatlon on any secuflfy mentioned herein IS avo liable on request

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