TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEM8ER NEW VORK STOCK eXCHANGE, INC. MEMBER AMERICAN STOCI( eXCHANGE – August 18, 1972 Some rather cruel wit once described a market analyst as one who, at 1000 o'clock, can tell 'Nht stocks are going to go up and, at 330, can explain why they didn't. And, it is indeed a fact -that the finanCial commentator. rather early on, musClearn the art oCexplalni;-hy hiSforecasts- have gone awry. There is little we can do to prevent the following from sounding like such an expla- nation, since we have for some weeks been pointing out the signs of technical deterioration occurr- ing in the stock market and suggesting the desirability if not, indeed, the likelihood of lower prices. The market, however, took the opportunity in Friday's and Monday's trading to chalk up what was, apparently, an impressive rise with the Dow-Jones Industrial Average posting a 20-point gain over the two days. In the process, the Dow-Jones Industrial Average scored a new bull market high at Monday's close, following the broader-based S&P Indices and the New York Stock Exchange Composite, which had moved into new high ground earlier. The move of these widely-followed indicators to new high terri- tory was duly noted, but we think it also important to note the fact that they were not joined by a number of other indicators — four of which are listed in the table below. ApriVMay High Last Wk's High Diff. ApriVMay High LastWI' s High Diff. DJIA 971.25 973.51 0.2 D.J.Trans. 275.71 237.62 -13.8 S&P 425 123.84 126.28 2.0 ASE Index 28.53 27.04 -5.2 S&P500 110.66 112.55 1.7 NASDAQ 134.10 131.70 -1.7 NYSE Compo 61.38 61.83 0.7 Ind.Dig. 59.01 54.15 -8.2 In summary, while new highs were chalked up by the Dow, heavily weighted in favor of blue chips and by the broader-based indices, whose fluctuations are largely a product of these same blue chips plusa..leaveningoflargecapitalizationgrowthlocks,neithertrans-portation.tocks.norsecondary issues, as represented by the NASDAQ and ASE Indices, followed the trend into new high ground. Most indicative, perhaps, was the performance of the little-known but highly descriptive average compiled by Indicator Digest, an index which gives equal weight to the performance of each of some 1500 new York Stock Exchange issues. Nor were advance-decline statistics impressive. The three days which started off the raIl y were on August 2 followed, after consolidation, by the advances of last Friday and Monday. On each of these days the Dow advanced approximately 1, and, on the three days, advances exceeded declines by,respectively,386, 403 and 306 issues. If one takes all of the days since the bull market began in May, 1970 when the Dow chalked up a comparably large advance (greater than. 75), we find that on 57 out of 79 of these days the advance-decline plurality was greater than that achieved on the three recent rising days. Also interesting is the fact that on Monday, as the Dow-Jones surged to a new bull market high, only 101 issues were at new highs for the year and on Thursday, three days after the peak, 39 issues managed to sell at 1972 lows. We are not citing these statistics here to prove that the market did not do what it did, i. e. go up, but we do think they constitute one more link in the chain of evidence which indicates that the ad- vance continues to be supported by fewer and fewer stocks. As more and more of the issues which spark-plugged the 1970-1972 advance (Mobile Home stocks, for example) begin to move lower, there is a smaller and smaller group of new leaders (such as some oils at the moment) to come aiong and take,their p1ace.- Now-it-is, of course,'possible,that; suddenly;-a host of new'issues,-which-have– been laggard in the market so far, will move to the fore, constituting the leadership necessary to pro- vide an extension of the advance. It should also be indicated, though, that the most' elementary study of stock market history indicates that such breadth is unlikely to emerge without the prerequisite of lower prices to attra ct new buying. What then of the future As we indicated two weeks ago, the upside objective for the Dow is in the 980-995 range, which area it had approached at last week's high. The long-term objective for the Dow, mentioned as long ago as October, 1970 in this letter, continues to be 1065, a level which, one would assume, could be produced by the psychological lift accompanying a break above 1000. It would seem, however, the height of folly to suppose that a market in which the leadership is as highly concentrated as it is at present will be one in which the achievement of capital gains will be a particularly easy task. Dow-Jones Industrials (1200 p.m.) 965.46 S&P (1200 p.m.) 111. 75 ANTHONY W. TAB ELL DELAFIELD, HARVEY, TAB ELL AWTmn No stalement or expression of oplnton or any other matter herein tontOlned IS, or IS 10 be deemed to be, directly or mdnec1ly. on oHer or the rolUllotlon of on offer 10 buy or seli Clny security referred to or mel'l'Ioned The matter IS presented merely for the converlence of The subscriber While we belreve the sources of Ol,lr Informa lion TO be reliable, we 10 no woy represenT or guarantee the occurocy IhereQf nor of the stoTements mude herem Any OCTlon to be token by the .subscriber should be bas.ed on hiS own IOvestlgotlon and Informallon Jonney Montgomery Scoll, Inc, as 0 corporotlon, ond lIs officers or employees, may now hove, or moy laTer toke, posiTions or trades 10 respect to any secUrities menTioned In thiS or any future ISSUe, and such posiTion moy be different from any views now or hereafter expressed In thiS or any other ,ssue. Janney Montgomery Scoll, Inc, which IS registered With the SEC os on inVestmenT odvisor, may gille adVice to Its Investment odvlsory ond othel customers Independently of any statements mode 10 thiS or In any olher Issue Further information on ony security mentioned herein IS ovodoble on request

– —– – — — —— I TABELL'S I MARKET LETTER I I J 909 STATE ROAD, PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE August 25, 1972 More than perhaps any market in recent memory, the present one is beset by numerous cross currents. As we indicated last week, an inspection of advance-decline statistics suggests quite clearly that, since – – – -March ;'-fndre'stodks -havebeengoing downtha'ii'nai'-ebeen-golfiup;'OespiteCth'EP'facftnat th-epoptilaf' –'. averages are close to record highs. Yet despite all of the statistics which suggest the increasing com- plexity of the investment environment, there are substantial numbers of individual stocks for which the technical patterns are, by themselves, highly encouraging. To some degree, at least, as we suggested last week, a shift in leadership does appear to be taking place, and a number of hitherto-laggard issues are beginning to look like interesting investment opportunities. – The following table is an attempt to indicate the existence of such a shift. It is based on the fact that three important lows for the Dow Jones Industrial Average are recognizable in the 2 1/2 years since bull market began in May,1970. The first is, of course, the 1970 low itself. The second is the low of last November when the Dow bottomed out below 800, and the third is the low of July 20, one month ago,when the market began its current uptrend. The table takes the performance of the 25 issues most popular in Mutual Fund portfolios as tabulated by Vickers Guide, and measures their percentage change from each of the three lows. Also shown is the change in the Dow Jones Industrial Average. Percent Chge-May 26,1970-Date Percent Chge-Nov.23,1971-Date Percent Chge-July 20,1972-Date 1 MGIC Investment 2 McDonalds Corp 3 Brunswick Corp 595 539 295 1 MGIC Investment 2 McDonalds Corp 3 Philip Morris Inc 113 92 91 1 MGIC Investment 2 Burroughs Corp 3 Travelers Corp 20 13 13 4 Philip Morris Inc 271 4 Burroughs Corp 70 4 Ford Motor Co 12 5 Kresge S S Co 245 5 Eastman Kodak Co 57 5 Du Pont De Nemours 11 6 Northwest Airlines 7 EastmanKodakCo 8 Xerox Corp 138 130, 128 6 Xerox Corp 7 KresgS,Co 8IBM 54 6 Texaco Inc 47 7 General Motors.Corp' 428KresgeSSCo 11 1! 8 9 General Electric Co 10 Minnesota Min. Mfg. 11 Burroughs Corp 12 Reynolds R J Inds 13 Sears Roebuck Co i4 Avon Products Inc 15 Polaroid Corporation 16 Du Pont De Nemours 17 Ford Motor Co 18 IBM 19 Westinghouse Elect 20 Standard Oil Of N J 21 American Airlines 22 Traverlers Corp 23 Dow-Jones Ind. Aver. 24Texaco Inc 25 General Motors Corp 26American Tel & Tel 118 110 110 109 102 84 82 80 76 71 62 56 55 55 54 46 33 3 9 Polaroid Corporation 10 Minnesota Min. Mfg. 11 Du Pont De Nemours 12 Reynolds R J Inds 13 Avon Products Inc 14 Brunswick Corp 15 Dow-Jones Ind. Aver. 16 Standard Oil Of N J 17 General Electric Co 18 Texaco Inc 19 Sears Roebuck Co 20 Northwest Airlines 21 Ford Motor Co 22 Travelers Corp 23 American Tel & Tel 24 General Motors Corp 25 Westinghouse Elect 26 American Airlines 42 9 Xerox Corp 37 10 Dow-Jones Ind. Aver. 35 11 Standard Oil Of N J 33 12 McDonalds Corp 24 13 IBM 23 14 General Electric Co 22 15 American Tel & Tel 18 16 Minnesota Min. Mfg. 18 17 Reynolds R rInds 16 18 Philip Morris Inc 14 19 Eastman Kodak Co 14 20 Avon Products Inc 10 21 Polaroid Corporation 8 22 Sears Roebuck Co 8 23 Westinghouse Elect 5 24 Northwest Airlines 3 25 American Airlines – 16 26 Brunswick Corp 8 7 6 6 6 5 4 4 2 2 2 1 0 -2 -3 -7 -8 -10 The following facts may be noted. 1) A small minority of stocks have managedto turn in conSistently above-average performan-ce. Such issues as MGIC, Kresge, and Burroughs are uniformly near the top of all three lists. 2) Beating the Dow is becoming a great deal more difficult. For the entire bull market, 22 of the 25 issues have outperformed the Dow. ,Since November, only 14 have done so, and, in the past month, the Dow has outperformed 16 of the 25 issues on the list. 3) There was little apparent leadership shift in the rise from the November lows. Of the ten top-perfor ing issues for the period November-to-date, seven were among the top ten for the bull market as a whole. 4) However, on the more recent rise, a distinct shift in relative action is apparent. For the bull mark as a whole, 12 stocks had performed better than twice as well as the Dow. Of these 12, no fewer than eight have underperformed the Dow on the recent rally. On the other hand, five of the nine issues that bettered the Dow on the recent rIse were among the laggards for the bull market as a whole. It is the emergence of this new leadership which has kept the average near its high so far, despite the deterioratkn in a large number of issues. Dow-Jones Industrials (1200 p.m.) 958.31 ANTHONY W. TABELL DELAFIELD, HARVEY, TAB ELL S&P ( 2'00 p.m.) 110.75 AWT' statement or expreSlon Qf opinion or ony other mattcr herein contolfled IS, or is 10 be deemed 10 be, directly 01 indirectly, on offer or Ine 501l;llollon of on offer ''\6'buy or sell any secunly referred 10 or mentioned Tne moiler 's presented merely for tne conver'lenCE of Ine subSCriber Willie He believe Ihe sources of our Informohon 10 be rel,oble, we In no way represenl or guoronlee Ihe occuracy thereof nor of tne slotements mude herein Any ocllon 10 be loken by the subscriber should be based on h,s—owii Invesllgotlon and Information Janney Montgomery Seoll. Inc, as a corporotlon, and Its officers or employees, may now have, or may loler toke, poslhons or trades In respect loony secUrilles mentioned In Ihls or ony future Issue, ond such pOSition may be different from any views now or herellter expressed In thiS or any olner Issue Janney Montgomery Scott, Inc, which 's registered With the SEC os on Inveslment odvlsor, moy give adVice to Its Investment adVISOry and olher customers ,ndependently of any statements mode m thrs or In any other Issue Further Information on any secunty mentioned herein IS aVailable on requesl

TABELL'S MARKET LETTER L- . – – . – 909 STATE ROAD, PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW YORk. STOCK EXCHANGE, INC MEMBER AMERICAN STOCK eXCHANGE September 1, 1972 Having turned down from the 970 level two weeks ago, the Dow-Jones Industrial Average moved up last in a new assault on thatlevel.The index.has now spent ….. wek ' ., '–' — -' . ———– mosLoLJ 92 'M—;' . in, rouglily,-the 900-970' range. 'Comparable ranges, with a slight upward bias, exist for the broader-based indices. Having gone on as long as they have, these ranges assume some significance. The bearish argument would have it that they are part of broadening top forma- tions,while the bullish contention would hold that they are bases preparatory to a new upward leg. As we have pOinted out, most indicies of market vitality support the former contention, but a decisive upside breakout at this stage pould, at least temporarily, lend support to the optimistic view. Last February in this space, we took the opportunity to examine in some detail the behavior of the margin speculator, focusing on the extraordinary rise in margin account debit balances that had taken place in December 1971 and January 1972. We suggested at that time that this rise, were it to continue, could have important implications for the character of the stock market. In the intervening six months, some of these implications have become manifest,and others have been notable by their absence. In any case, it is worthwhile at this stage to revisit our friend, the margin buyer, and examine some of the implications of his activity so far this year, To begin with, the heavy buying, initiated last December, has continued unabated. Debit balances have moved to a newall-time high, and at their July level of 7,66 billion, had increa s ed 2.75 billion from the November figure. This is an annual rate well in excess of 4 billion which, for comparative purposes, is approximately one-third greater than the ers.1'I1unS.''lrc inyes tedbythElLmutua1.fund.indus try ..i.Il,;.anyZ,..,monthperiod. Put another way, the months December through April 1972 saw monthly percentage increases in debit balances ranging from 5.55 to 10. Since 1954 there had been only four months in which the percentage increa se in margin debt exceeded the lowest of these figures. Yet in the present instance we were able to put five such months back to back. We think it no coincidence that the market bottomed on November 23, 1971, and the rise in debit balances began in the month of December. During the period, mutual funds were net sellers of stock,and buying from other identifiable sources was not significantly above normal levels. It is highly probable that margin buying constitued the single most important factor in the market rise durinq the first half of 1972. Yet there remain a number of curiosities. We said in February, If the margin speculator does return . it will have important implications for the character of market leadership. His- torically, he has tended to prefer low-priced stocks to high-priced stocks, secondary issues to blue chips, and has shown a greater-than-average interest in the American Stock Exchange, .. ,The margin speculator has,in fact, returned with a vengeance, but these historic preferences have, so far, totally failed to maniiEst themselves. American Stock Exchange volume has continued to lag, and secondary stocks generally have shown inferior action in comparison to the blue-chip dominated averages, which have been making new highs. Our present margin buyer is apparently a totally new breed. In a market coming more and more to be dominated -abcytiionns'tiitsutainodnhsa, sh-sehhapaesd'anpipsarpetneftleyrerreialciezse-dactchoartdfinngsltyitu-tional -qua . -. lity – stocks are where the -.– . '';—- Another interesting sidelight to recent margin statistics is the number of open margin accounts. As of July, there were 725,000 such accounts, up only 75,000 from the November figure. This compares with 940,000 accounts open in February 1969, a figure which dropped off steadily through last fall. Quite obviously the margin buyers of 1972 are the survivors of the 1969-70 debacle who have simply regained the confidence to increase their borrowing under the stimulis of lowered minimum requirements, rather than new entrants to the market place. Whether these new entrants will arrive in the future, is, in itself, questionable Debit balances in July were approaching 1 of total New York Stock Exchange market value, a level in the past associated with peaks. It is thus quite possible that we may have to wait some time before seeing the classical signs of speculative activity which we might otherwise expect at this stage of the market cycle. Dow-Jones Industrials .(1200 p.m.) 969.07 SSP (1200 p.m.) 111.47 ANTHONY W. TAB ELL DELAFIELD. HARVEY , TABELL AW1!Q1pKenl or expre5510n of opinion or any olher matter helem ton'tomed IS, 01 IS 'to be deemed to be, duedly 01 mdlretlly, an oifeT Of 1ne s.olltl1allo\ of O\ oller to buy or sell any setlmfy referred 10 or menlloned The matler IS presenled merely for the conve'lenc of the subscTlber While Ie believe the sources of our information to be relloble, we In no way represent or guarontee the accuracy thereof nor of the tatements mude herem Any action to be taken by the subscllber should be based on hu own Investigation and Informotlon Janney Montgomery 5011, Inc, as a corporation, ond Its offICers or employees, may now hove, Of may loter toke, posItions or trades m respect to any secUTllieS mentioned In thrs or any future Issue, and such positron may be different from any Views now or hereafter eJpressed In thiS or any other Issue Janney Montgomery Scott, Inc, which IS registered wllh the SEC os on Investment adVisor, may give adVice to Its Investment adVisory and othel C'iJslomers Independently of any statements made In thiS or In any other Issue Further information on any secullty mentiOned herein IS available on request

r– I j T li\JBIED..D..'S 1a1iIli\1RKIEV t D..1E11IER 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEM8ER NEW VORK STOCK eXCHANGe, INC MEMSER AMERICAN STOCK eXCHANGe September 8, 1972 The last few issues of this letter have focused on an apparent shift in leadership which has been taking place in the market since November. In general this shift has featured det-eriorating – relative-action'byvisible-growtli issues-sJun;;t lllgh–multlplerand Improving action on tl1e-pa of some low-multiple cyclical issues which can be expected to thrive in an expanding economy. However, the improving relative strength shown by the latter group must be viewed in the light of individual chart patterns. In some cases, the patterns suggest the possibility of a major uptrend's having commenced. In others, the lact of large bases or the presence of overhead supply suggest that the current strength may be short term in nature. We are, therefore, starting this week, and will continue in future letters, a review of the technical positions of major industry groups. The comments which follow are based on technical factors only, and further information on all issues is available on request. AEROSPACE – Most stocks in this group have spent the last two years forming what will undoubtedly tum out to be potential bases. Market performance since November has been above average, but recent relative action has weakened, lending some doubt as to whether upside penetrations will take place immediately. They would thus appear interesting for purchase only on weakness to around last year's lows. AIR TRANSPORT – This group had been one of the star performers in the market upswing through May, but deterioration since that time has been vicious. Nonetheless, most long-term uptrends remain intact, and a number of issues appear close to support levels. Delta Airlines (53), NatIOnal Air- lines (38), and Northwest Airlines (37) have reached downside objectives of short-term tops and appear to be attempting base formations around current prices. ALUMINUM – This group is typical of those cyclical industries which had been inferior market – erformers-a Imos t-throughout 'th-eentirebulYmarKet-but wh-i-CWl1av-e'Snown dra rna ticallYlmptoved short-term relative action over the past couple of months. Although further short-term upside potential exists, the size of the bases, plus relatively heavy overhead supply, do not suggest the likelihood of a major move's having begun. AUTOMOBILES – This is one of the few cyclical groups that has failed to outperform the market recently, and this failure must raise some doubts in view of the above-average strength shown by other such issues. Potential bases are large, but we would await improving relative action before suggesting purchase. AUTO EQUIPMENT – This group has, generally, been outperforming the market over the past two years, but many of the leaders such as Champion Spark Plug (53), Dana Corp. (39), and Echlin Manufacturing (41), are approaching upside objectives. Borg-Warner (33), has an interesting long- term pattern with an upside potential well above current levels. BUILDING SUPPLIES – This group has been deteriorating relative to the market since approximately November, and a certain amount of further downside risk appears to be present in many issues. Generally, the attraction at this time is below average. CHEMICALS – This is another cyclical group which has just recently begun to show improving action. Monsanto (56) remains in a well-defined uptrend with higher objectives readable. Union Carbide (49) has completed a substantial base formation and also appears interesting as a purchase candidate. CONTAINERS – METAL & GLASS – Major issues in this group have shown dramatica lly improved relative.action overthepast.few .months,bu-theavy.overhead supply appears.to limit-upside 'poten- – tial for the time being. Such supply exists in the high 30's for Continental Can (33) and at 35-38 for American Can (32). CONTAINERS – PAPER – Most issues in the group appear to be in neutral to moderate downtrends and would appear to be uninteresting as purchase candidates except for very long-term bargain hunters. An exception might be Bemis Co (26) which ha s just broken out of a two year ba s e and which has strong support at 22-21. COPPER – Another highly cyclical group in which distinct relative improvement has taken place since November, after two years of below-average performance. Bases are generally not large, however, and it is hard to envision the present strength turning into a mOve of major proportions. Phelps Dodge (40) might be an exception, and ability of this stock to mOve above the 45 level would indicate considerably higher levels. Dow-Jones Industrials (1200 p.m.)962.67 S&P (1200 p.m.)1l0.29 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL f)NT.Fh No statement Qf eXpreSSion of opInion or any other matler herein contained IS, or IS to be det!med to be, directly or ,ndlrectly. on offer or the sollcltat,on of on offer to buy or sell any seC\Jr,iy referred to 01 menhoned The mOllel I pft'.senied ITIHely fof the CCI'I'Iel'ltnce of the subSCriber Whde we believe the sources of our mformotlon 10 be relloble, we In no way represent or guo ron tee the accuracy thereof nor of Ihe statements mudc herc,n Any action 10 be token by the subscnber should be bosed on hiS own Investigation and mformotlon Janney Montgomery Scott, Inc, as a corporation, and lIs officers or employee may now have, or may loter lake, POSitiOnS or trodes In respect to any SeCUrities mentIOned In thiS or any future Issue, and such posdian may be different from any views now or hereafter el'pressed on thiS or any other Issue Janney MontgOrTlery Scott, Inc, whICh IS registered with the SEC as an Investment adVisor, may give adVice to ItS Investment adVisory and cthe. customers Irldependently of any statements made on Ih,s or on any olher Issue Further ,nformation on any security mentioned herein IS available on request

——————— TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIYISION OF MEMBER NEW YORK STOCK eXCHANE, INC MEMBER AMERICAN STOCK eXCHANGE September 15, 1972 -We-are -conUnuingtMsweekcwith -our'reviewof the 'current'technical'patfem-s'f6(m-a-jor iii'ausmal— groups. The comments on individual stocks are based solely on technical factors, and further in- formation on all issues are available on request. COSMETICS – Action of this group, only neutral throughout most of the bull market, has recently improved sharply. Avon Products (118) continues to hold within its major uptrend and has a moder- ately higher objective. Gillette (51), which recently moved to a two-year high, has broken out of a major base and appears attractive as a possible purchase. DRUGS – As a group, these issues are showing above-average relative strength but there is a wide diversity of patterns. Interesting purchase candidates include Bristol Myers (66) , and Carter Wallace (28). Others such as Merck (81) and American Home Products (112) have already moved up sharply and are, at least, approaching upside objectives. ELECTRICAL EQUIPMENT – General Electric (65) has continued to show above-average relative action, and there is strong support just under current levels with higher objectives readable. Westinghouse J!Q2, by contrast, has exhibited some recent price deterioration and might be technically vulnerable over the short term. ELECTRONICS – This continues to be, as always, a widely diverse group where individual patterns are more important than the group trend. There are currently interesting patterns in some of the more speculative issues in the industry including Oak Industries (18) and Varian Associates (20). The semi-conductor companies such as Motorola (115) and Texas Instruments (64) had been upside leaders until just recently, but their relative strength has deteriorated sharply, and some near-term –price,-ulneabilityappearsAstill..to..bepmsent-. FARM EQUIPMENT – Deere & Co. (75) has, over the past two years, been one of the better-perform- ing investment-grade issues, and an objective of 96 is still readable. However, the sharp advance makes it perhaps less attractive than International Harvester (37) which has just posted a major breakout and appears to have a wider current potential. FOODS – Although regarded as a defensive group, these issues have proved to be anything but de- fensive in recent markets with many leading stocks in the industry off sharply from their highs. Despite recent price markdowns most of the stocks do not appear particularly attractive for new purchase at this time. An exception might be Pet Inc. (42) which has reacted to a strong support level. Swift & Co. (35) and Iowa Beef Processors (30) , in the meat-packing area, both have sub- stantial long-term bases. INSTALLMENT FINANCING – Although this is supposed to be a low-volatility, conservative industry, most of its components have been leading the market on the upside over the short-term, and many issues in the group appear attractive for purchase, notably Beneficial Loan (48), CIT Financial (51), and the more speculative Heller International (34). LIQUOR – This little-followed group has been dramatically outperforming the market on a technical basis since the first quarter of 1972. In most cases upside objectives are being approached but Hiram Walker (49) still has a higher readable objective. MACHINERY – Group action, as usual, is mixed. The oil well equipment companies have turned in stnking performances, but upside objectives are being attained. Such issues as Caterpillar Tractor Man!. Ingersoll Rand (66) ,despite .their,shar.p,rises, still.ha-ve-attraGt-ive.long-term -patterns — Machine tool companies continue to build substantial bases but show no indication as yet of an immediate move. Joy Manufacturing (42), whlch has been in a vicious short-term downtrend, is close to support at current levels. MOTION PICTURES – The growth favorite in the industry, Walt Disney Productions (179), appears vulnerable at least for the short term. Other issues in the group have relatively uninteresting patterns. OFFICE EQUIPMENT – Many issues in this group have been standout price performers but upside objectives are being approached, and a few stocks are starting to form what look like distributional tops. Both IBM (400) and Burroughs (205) would have to be included in this category. Sperry, Rand (43) and National Cash Register (36), while of lower quality, still appear to have further upside potential. Dow-Jones Industrials (1200 P.m.) 947.55 S&P (1200 p.m.) 108.84 ANTHONY W. TAB ELL DELAFIELD, HARVEY, TABELL AWTmn No 51atement or expreulon of op'flIon or any other malter herein contolned IS, or 15 10 be deemed 10 be, directly or indirectly, on offer or Ihe ollcltotlon of on offer 10 buy or sell cnr, security referred to or mentioned The moiler IS presenled merely for the converlence of the subSCriber While we believe the sources of our Informa ,.on fo be rei lOb e, we In no way represent or guorantee Ihe accuracy thereof nor of Ihe statements mode herein Any action to be token by the subSCriber should be based on hiS own investigation and Information Janney Montgomery Scali, Inc, as a corporation, and lIS offICers or employees, may now have, or may later toke, poslhons or trades In respect to any rltle mentioned In thiS or any future Issue, and such pas. lion may be different from any views now or hereafter e;opreued In thiS or any other Issue Janney Montgomery Scali, Inc, which IS registered With the SEC as on Inveslment adVisor, may give adVice to lIs Investment adVisory and other customers ,ndependently of any statements made In thiS or In any other asue Further Information on any security mentioned herein IS available on request

TABELLS MARKET LETTER – ——– 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE September 29, 1972 Read ers of this letter over the past few months can hardly fa il to notice that it has been —-,-… —- – – – –'—– ' – r i' ' – – . ; . …….—-a.—-;.-';'-c;—, -.. to say th1deast; sb-mewnat less than optimistiC a'bout the present level of stock prices. This opinion arose out of as honest as possible an evaluation of the available technical statistics and has been repeatedly expressed in the belief that awareness of these statistics would be of value to the investor. We are, nonetheless, cognizant of the fact that we may have come to sound like a broken record with our repetitive arguments for caution. So we propose this week to examine the bullish case, or at least to try to evaluate what upside possibilities appear to exist at the present time–playing the role, perhaps, of our own devil's advocate. To begin with, the popular averages have remained, essentially, locked in trading ranges since the early part of 1972. In the case of the Dow, the top of this trading range is at around the 980 level on an intra-day basis, this figure having been approached in April, May, and again in August. The lower part of the range is at around 917, intra-day, which level was touched in early M3Y, June, and again in July, with a couple of days of July trading actually moving somewhat below that figure. The broader-based indicies exhibit essentially the same pattern, although with a slight upward bias, in that they were, on their August rally, able to move to newall-time high territory by a modest amount. Now it has been the supposition of this letter that this entire trading rarge would ultimatel, come to constitute an area of distribution, the reasons for this conclusion having been documented at some length.What we.want to examine here is the ar,guJnenttbjlLsuch.isnot,the.,.-,- on'case and that the trailing range will ultimately be penetrated the upside. ' n If we are to deSignate the March-September formation as intermediate-term in nature, the relevant short-term formation is a subsidiary trading range, delineated by 945 and 980, which contained the Dow in late August and early September. This area was penetrated on the down- side shortly after Labor Day, and it must be noted that the downside objective of that top, roughly 936, was attained at last week's low. The area around the low 930' s on the Dow is of more than passing interest from a technical point of view. It is, first of all, the general area where the index has bottomed three times before and thus constitutes a plausible sup- port level. Moveover it constitutes the bottom of a computer-calculated trend channelrunnirg from the November 1971 low to the August high. If a rally then were to occur, 930-935 was certainly a logical area to expect such a rally to begin. Indeed, just such a short term rally did, in fact, occur, sparked by peace rumors on Wednesday afternoon. It had sorre mearure of conviction,with a ten-point advance in the Dow, more than 1, 000 advanCing stocks, and, after some hesitation, a convincing follow-through in late Thursday's and early Friday's trading. The course of the present rally will be highly interesting, for it will determine whether our recent peSSimism has been well-timed or prematur If the advance, either immediately or after some period of basing, could carry through, on good breadth and volume, above the 974 level, it would suggest tha the March-September range did not have immediate downs ide implications an9 indicatethe.p'o,s sibilityof.a further – – -, -e-xt-ension- of—'-th-e -a-d-v-a-n-ce–fr-om–th-e- N-o–v-e-m-ber lows. -…… … – The question of how far such an advance might carry is an interesting one. The most plausible upside objective would be in the area of 1020, fairly close to the 1065 objective which this letter first suggested as long ago as October 1970. While relatively small on a percentage basis, such an advance could produce a worthwhile rise in individual stocks. While it must be considered a possibility, such an advance could hardly alter, in our, view, the evidence of long-term deterioration that has been manifesting itself throughout the past summer. The uncertainties which confront the current stock market will not be removed by another relatively modest leg up on the advance. What a rally would do, of course, is to buy time, giving the investor a more favorable climate to take the steps nec- essary to insure protection of his capital. Dow-Jones Industrials (1200 p.m.)958.31 S&P (1200 p.m.) 110.70 ANTHONY W. TAB ELL DELAFIELD, HARVEY, TAB ELL AVlT.rlt No stotemenl or expression of OPInU;ln or any other motler herein conlcllned n, or 15 to be deemed to be, directly or indIrectly, on offer or the OII;llollon of on offer to buy Of sell ony security referred 10 or mentioned The matter IS presented merely for the conver-lenCE of the subSCriber Whllel'le believe Ihe sources of our Informahan to be rellahle, we In no way reprenl or guarantee the accuracy thereof nor of the statements mude herein Any action 10 be talen by the subscriber should be based on h' own Investigation and information Janney Montgomery Scott, Inc, as a corporation, and Its offICers or employees, may now have, or may later toke, positions or trades In respect to any secvrilies mentioned In this or any future ,ssue, and such POSIllOn may be different from any views now or hereafter expressed In thIS or ony other lSue Janney Montgomery Scott, inc, which IS regIStered With the SEC os on Investment adVisor, may give adVIce to Its Investment adVISOry and other customers Independently of any statements mode ,n thIS or In any other ISsue Further ,nformat,on on any security mentioned herem IS ovodabte on request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCK eXCHANOE, INC MEMBER AMEFlICAN STOCK EXCHA.NGE October 6, 1972 RadlO soap operas used to conclude each epIsode wlth a pOIgnant question relating to the next day's instaltent '-s-!h. .tockma(kEtP9Sjd ..,juSLqch ,a queshon-last weec .It wa-s, .It Can1.mencan Telephone-.. surVIve Levitz Furniture . Conslder some of the paradoxes of the week just passed. The major averages closed the week moderately lower wIth trading volume contmumg around its recent desultory levels. Meanwhlle, Levitz, whlch had managed to declme almost 14 points In one day on mildly disapPOIntmg news Friday, con- tinued to constItute a major portion of New York Stock Exchange volume, all the whIle headmg in a general southeasterly directIon. On TuesdaY,American Air Filter, WhICh had announced some dlfhultIes In Its CanadIan subsidiary, lost 11 1/2 POInts, or better than 25 percent of its value, In a slngle day's trading. Early In the week Curtiss Wright had managed to loose 11 pOInts In three days, for no reason that was immedlately apparent. While all this was going on American Telephone reached- a new hIgh for the year, In the process postIng an important technical upside breakout, the first real sign of ImprOVIng technIcal actIon In the stock In a number of years. Standard 011 of New Jersey also reached the new high list and also posted a techmcal breakout which suggests higher levels. The message seemed to be that the widows and orphans shall mhent the earth. In a sense, last week's actIon should not be surprisIng since it was a contInuatIon of the sort of thing that had been gOIng on for some time. The relatively good actIOn of the market averages has been maskIng consistent erOSIon of equity prices which has been going on since early summer and which has tended to become obVIOUS only in dramatic cases such as those CIted above. For example, as of Wednesday's close, the Dow Jones Industrial Average was off by a bit more than three percent from its high for the year. Of 1428 common lssues whlch traded on the New York Stock Exchange that day, the average Issue closed down some 21 percent from its year's high, and half of all Issues were off from theIr h,ghs by amounts rangmg from 18 percent to 80 percent. Only 93 stocks were off from – —–th eI-f-,,;-year-! so!..h-lg hby-le 5 5 'than….the-'-Dow whereaS…5-stl csweres ell mg S-oercentr 'lTrore4Yel-owLhelr- ——- 1972 peaks. Clearly the averages have, of late, been outperforming the market. Now on a purely statistical basis, there IS no particular reason why thIS should not be so. Averages are, after all, composed of stocks, and if the stocks contamed In those averages happen to be dOIng better than most, the averages will present a somewhat dIstorted pIcture of what the average stock is dOIng. Such is the case at the moment. The Dow encompasses both Amencan Telephone and Standard Oil of New Jersey, clted above, plus two other mternatIonal OIls and a few other blue ch,ps whIch have been recent upside leaders, The Standard & PoorI s 500 IS largely mfluenced by the Dow-type blue ch,ps plus some of the larger growth favorites which, by and large, have held steady over the past few months. But one salty sage described a bear market by notmg When they back the paddy wagon up to the door, they take out the good girls along with the bad. Clearly for a substan- tial number of issues bear market condItions already eXlst. Thus the questIOn of whether Telephone can survive LevItz, Can we continue with a market where the averages hold steady and the speculative favorites are, one by one, shot from the sky–a phenomenon that mIght be described as rotatlonal collapse It is, of course, a questIOn WhiCh, from an investment policy pOInt of vIew, may not have to be answered. We have reached the pOint where high-grade, dividend-paymg companies, sellmg at historically low levels on an earmngs basis, compnse a liberal portlon of those stocks showmg the most dynamIC technical actIOn. Clearly, if a serious decline IS In the offing, the mvestor will feel more comforhble throughout that decline with stocks of the Telephone- Jersey genre. Technical work strongly suggests that the Investor in these stocks WIll also possess above-average capItal gains opportunities, should the market turn up Yet It must also be noted that, hlstoncally, relatively strong performance by high-grade issues vafollowlnganextended 'ad nce- h-as tendedTo–denoteth-eternunal' phase of iha(a'dvance . Yhls may be surprising to some whose memory of bear markets extends only to the most recent one, 1968-1970, In that decline, the blue-chIp-dominated averages topped out early, while a minonty of Investment and speculative favontes continued to move to new hIghs after the Dow had been headed downward for almost a year. If one goes back to prevIOUS downswIngs, however, the reverse has tended to be true. Most of the speculatlve favontes of the 1958-1961 advance made theIr h,ghs In late 1960 or early 1961, whereas the averages reached their peak In November-December 1961. It IS also worth noting that in the subsequent bull market, begmnIng in 1962, hlgh-grade Issues were leaders on the upside. General Motors, for example, reached ItS peak in December, 1961 along with the averages, and, in the subsequent downswing, declined only 2/3 as much as the average. From Its 196210w ithad, a year later,moved up some 80 percent and stood a healthy 30 percent above its 1961 hlgh. All of th,s makes the case In favor of quality at the present Juncture rather compellmg. Note Comments on Indlvld- uallssues are based on technical factors only. Further informatlOn is avaIlable upon request. Dow-Jones Industnals 200 p.m.) 935.20 S&P 02.00 p.m.)l08.40 AWT'rk ANTHONYW. TABELL DELAFIELD, HARVEY, TABELL No statement or expression of opinion or any other motter herem conto,ned 's, or 1 to be deemed to be, directly or rnd,rectly, on offer or Ihe Sol,c,totlon of on offer to buy or Sell any secunty referred to or mentioned The moiler IS presented merely for the converlenCe of the subscriber While we beheve Ihe sources of our Informo- han to be reliable, we ,n no way represent or guarantee the accuracy thereof nor of the statements mude herem Any action to be tok.en by the subscflber should be ba5ed on hiS own rnvestlgohon and infOrmation Janney Montgomery Scott, Inc, as 0 corporat,on, and Its aff,cers or employees, moy now have, or may later lok.e, positions or trades In respect to any securities mentioned In thiS or any future ,5sue, and such pesltlon may be different from ony views now or hereafter epressed In Ihls or any other Issue Janney Montgomery Scoll, Inc, wh,ch '5 registered wllh the SEC as an mveslmenl adVisor, may give adVice to lIs mveslmenl adVisory and other customers rndependently of any stolements made In IhiS or In any other Issue Further ,nformatlon on allY security mentioned herem IS available on request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE October 13, 1972 – The, stockmarket stubbornlYlefus ed,.,.inla st-week1s-tradIng7to,resolve- the.-,j i-lemma noted – – in this space two weeks ago. At that time, we pOinted out that the Dow had reached its downside objective in the 930's. A week ago, on Friday, the index declined to that level again and then, in one of its typical responses to Mr. Kissinger's peregrinations, rallied sharply, thus creating, in effect, a double bottom. The rally, however, failed to follow through and peaked late Tuesdav. The slide continued through most of the week, and by mid-clay Friday the pre vvi ou s low had been penetrated by a fairly significant margin. This failure to hold would suggest that the thrice-tested low around 917, penetration of which would signalize a major downtrend, will be assaulted again. Anticipating breakouts is somethingthattechnicians, historically, are loath to do, but the continuing distributive action in more and more individual stocks tends to suggest a downSide rather than an upside resolution to the impasse. We are continuing this week with our review of major industrial groups. Comments are based on technical factors only, and further information on all issues is available upon request. OILS – In an atmosphere of general technical deterioration, this is one of the few groups showing dynamic upside action. This is probably attributable to a number of factors, including growing demand due to the energy shortage, resolution of political difficulties in the Middle East, and the fact that the stocks remain historically cheap on an fI'TliI1s and yield basis. The international, segment of the industry has shown the most outstanding action,and many issues in this group 9,QntinJ,letopp.earasattractiye.pur.chas,e-.candidatesAmongattractlvely-sHuatedst0C';sare- Phillips Petroleum (37), Standard Oil of California (72), Standard Oil of New Jersey (83), and Texaco (36). Pacific Petroleum (45) continues an attractive participation in the growth of Canadian oil and gas production. PAPER – As a group, these issues have tended to remain on dead center. Most are close to support and appear to present little downside risk from current levels. Relative strength has been average. Thus, while defensive quality and very long-range potential is good, they are probably best avoided until some sign of improving relative action manifests itself. PUBLISHING – This group as a whole has been turning in a below-average performance since the early part of 1972. Downside objectives are beginning to be reached, suggesting that the worst part of the decline may be over, but improving relative action will be necessary before they can be suggested as capital-gain vehicles. RADIO-TV BROADCASTERS – These issues have moved up sharply until recently, and it is highly possible that this loss of momentum indicates distribution. We would suggest consideration of profit-taking in this area. RADIO-TV MANUFACTURERS – Patterns in this group are mixed. Motorola (115) couldberebasing around current levels, and the ability to hold above 110 would be constructive. Magnavox (27) has reached its downside objective,but a period of basing w ill be required. RAILROAD – As a group, these issues appear to present only average attraction at the present time. RAILROAD EQUIPMENT – Such issues,as General American,Transportation(4J), Jullman(4!Land …;;.. 'U . S. Freight (28) recently retd i–dwnside objectives without destroying what have been favorable long-term patterns. They could well be attractive as purchases on weakness. RETAILING – This group, long considered a conservative and defensive area, has shown precious little in the way of defensive qualities so far in 1972, and most issues in this group have been trending downward, both relatively and on an absolute basis, since the beginning of the year or before. The notable exceptions have been such industry leaders as 1. C. Penney (84) and Sears (106), and even the latter is now beginning to show some signs of deterioration. Many grocery chains are selling at or close to ten-year lows and no sign of basing action is particularly apparent. In general the group appears best aVOided at the present time. Dow-Jones Industrials (1200 p.m.) 929.41 S & P (1200 p.m.) 107.77 AWTrk ANTHONYW. TAB ELL DELAFIELD, HARVEY, TABELL No statement or expression of opinion or any otner motter herein contained IS, or . 10 be deemed to be, directly or mdlrectly, on offer or the sollcltallon of an offer to bvy or sell any secunty referred to or mentioned The motter IS presented merely for the conver'lence of the subSCriber. While we believe the sources of our Informa lion to be reliable, we In no way represent or guarantee the accuracy thereof nor of the statements mude herein Any actIOn to be token by the subSCriber should be based on hiS own investigation and Informollon Janney Montgomery Scott, Inc, as 0 corporation, and lIs officers or employees, may now have, or may later toke, positions or trades In respect to any ecurltles menlloned In thiS or any luture Issue, and such pOSition may be different from any views now or hereafter expressed In thn or ony other Issue Janney Montgomery Scott Inc, which 15 registered With the SEC as an Investment adVisor, may give adVice to Its Investment odvlsory and othel customers Independently of any stateTients mode In thiS or 11'1 any other Issue Further information on any security mentIOned herem IS avalloble on request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCI( eXCHANOE, INC MEMBER AMERICAN STOCI( eXCHANGE 'r– October 20, 1972 The downward slide, which has characterized recent equity markets, abated, at least temporarily, in last week's trading as the Dow-l'ones Industrial Average, after reaching an – intra -day -low 'of '91'7,;-.Q,7On T'uesday iadvanced 'sharply-late' Tuesday 'and 'early 'Wednesda'Y'. ' Again the impetus was peace rumors, and again the damper thrown on those rumors at noon Wednesday halted the advance. We have pOinted out in this space innumerable times in the past that the stock market has a long history of finding excuses for what it was going to do in the first place. Readers will forgive our cynicism if we voice some doubts as to whether the fundamental trend of stock prices really depends on where Mr. Kissinger happens to show up on a given morning. More- over, while remaining devoutly desirous of a cessation of Vietnam hostilities, we feel compelled to suggest that a number of problems currently facing the equity market will not necessarily be resolved by that cessation. ' Yet, to those bullishly inclined, it must be conceded that, once again, the market decline halted in just about the right place. The low 900's on the Dow have represented an important demand area throughout most of the latter part of 1972. The importance of that area would be reaffirmed by the ability to hold around current levels. We complete this week our review of the technical position of major industrial groups. Comments are based on technical factors only, and further information on all issues is available upon request. RUBBER – Major tire companies moved up relatively little during the 1970-71 advance and have since retreated, generally, halfway to their 1970 lows. The trading ranges thus formed have substantial upside potential, but recent relative action does not suggest the imminence of an – ups-idebreaKom. l I SAVINGS AND LOANS – This is one of the few groups that was able to break through to new high territory in the face of decisive general market weakness. Most indiVidual issues have now retreated from their highs and are fairly close to good support. First Charter Financial (30) Great Western Financial (30) appear attractive. SOAPS – Both Colgate(80) and Procter & Gamble (99) had been upside leaders, before their uptrends flattened out in the early part of this year. While relative action has continued good, upside objectives had been reached at recent highs, and at least partial profit-taking might be cons idered SOFT DRINKS – The same comment made above applies to this group. Relative action has been good, but the stocks have advanced sharply from their lows and objectives have been reached. STEEL – Steel stocks, baSically dormant for more than ten years now, possess a huge amount of technical potential, but also give no indication that that potential is likely to be realized at any time in the visible future. Some of the smaller companies such as Carpenter Technology .llll and Lukens (20) have appeal as long-range speculations, but the larger companies still appear uninteresting. – — '. . . ——– — .. -, — –TOBACCO— -Recent -ac.t.io.n.o.f-t,his group has been highly di-sappo-in-tin-g-. -However, the-sto-c-k-s—-I are off sharply from their highs and have reacted back to the major demand level around the top of their 1962 -71 trading ranges. Some rebasing will undoubtedly be required, but they appear interesting for purchase on weakness, ,in particular Reynolds Industries (51). UTILITIES – It is interesting that,while the Dow Industrials are headed lower, the utilities, by contrast, are flirting with their six month's high, probably the most positive relative strength pattern developed by the group since early 1971. This is interesting, since many issues are still available at historically low prices and provide relatively generous returns. Gas pipe lines suchas Rlnhanclle Eastern Pipeline (40) and growth issues such as Texas Utilities (33) appear most interesting for the relatively aggresive Investor at the present time. Dow-l'ones Industrials (1200 p.m.)932.57 ANTHONYW. TAB ELL S & P (1200 p. m.) 108.19 A1AT Cork DELAFIELD, HARVEY, TAB ELL No statement or exprenlon of opinion or Clny olher moMer herem contamed 1, or 1 10 be deemed to be, directly or Indirectly, on offer or the sohcltotlon of on offer to buy or el' cny security referred to or mentioned The motter Is presented merely for the convef1lence of the subSCriber While we believe the sources of our Informa- tion to be relloble, we In no way represent or guarantee the accuracy thereof nor of the statements mude herein Any octlon to be token by the subSCriber should be based on tm own Inveshgotlon ond information Janney Montgomery Scali, Inc, as a corporation, ond Its officers or employees, moy now have, or moy loter toke, positions or trades In respect to any seCUrities mentioned In thiS or ony future ISSue, ond such posillon may be different from any views now or hereafter expressed In thiS or ony other ISsue Janney Montgomery SCali, Inc, which IS registered with the SEC as on InvUlment adVisor, may give adlce to 115 Investment adVISOry ond athel customers Independently of any statements mode In thiS or In any other ISsue Further Information on any security mentioned herein IS available on request

——- TABELL'S MARKET LETTER I I J 909 STATE ROAD. PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCk EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE October 27, 1972 Just four weeks ago, we used the following language in this letter. To begin with, the popular averages have remained, essentially, locked in trading ranges since the early part of ,1972. 'ktllcase ofotheDow, the,top ofthis.trading JangEl isataroundthe9aOleyel on an-, intra-day basis, this figure having been approached in Apnl, May- and again -inAgut. The lower part of the range is at around 917, intra-day, which level was touched in early May, June, and again in July, with a couple of days of July trading actually moving somewhat below that figure. Since that time a great deal has happened in one sense and very little in another. In coltrast to the Wars and Rumours of War referred to by St. Matthew, we have had rumours of peace and now, perhaps, thankfully, peace itself. As negotiatIons with the North Vietnamese pro- gressed, we were incessantly reminded by any number of commentators that the course of the stock market would depend upon the outcome of these negotiations. The market itself continued to behave in almost Pavlovian fashion–duly rising whenever the peace outlook appeared to improve and declining when it dimmed. And yet let us examine what happened in light of the above paragraph. The last peace rally began from an intra-day low of 917.07 reached by the Dow-Jones Industrials on Octmer 17. It continued right through Mr. Kissinger's announcement of the probable success of peace negotiations on Thursday reaching an intra-day high of 962.45 in the rally directly following the announcement of the Kissinger press conference. Precisely at that pomt, the advance duly subsided and the market moved lower in late Thursday's and early Friday's trading. It is once more time, we suppose, for us wearily to deliver our familiar lecture On the utter irrelevance of news events to the course of stock prices. We say wearily, because, despite all the evidence to the contrary, there are still those who persist in believing that the 1962 bear '–nrarket-was-caused -by'anlltercation-jyetwe-en'the'Pres1uents-of'theUn1ted43tates-and'the-United States Steel Company, and that the subsequent bottom had something to do with the resolution of the Cuban Missile Crisis. LikewIse, if equity markets do tum up from here, these same historians will inevitably brand the advance as a peace rally. The fact is that the intermediate- term course of the stock market is determined by factors largely related to supply and demand and that news events seldom do anything more than to make latent supply/demand forces manifest, perhaps speeding up a course of action which might otherwise have been delayed. In the present instance, all that the peace negotiations have accomplished, msofar as the stock market is concerned, is to reinforce the conclusion that there is a demand area around the low 900's in the Dow which has managed to contain every decline since early this year, and there IS, likewise, a supply area at 950-970 which has managed to stem every advance that has occurred since that time. It is almost futile to try to predict with any degree of certamty the intermediate- term course of eqUIty prices until such time as one of these two areas is decisively breached. The argument that the ultimate penetration is likely to be on the downside rests largely on historical factors. Since March ,the popular stock averages have been holding steady or making new highs at a time when the bulk of issues were actually declining. In the past, periods of this sort of action have tended to lead to ultimate general weakness, spreading through the entire stock list. The counter argument, if one IS to be made, must be based on the apparent leadership shift as individual stock patterns develop. In recent months, as pointed out in th,S letter, we have witnessed strong accumulation In a number of quality, defensive, cyclical and semi- , – cyclical-;-ssue-s– the Oils ,- Finance Copanies; Ban-ks and, more rece;rtly, Utilities being ca ses in pomt. Moreover, most recently, we have seen downside objectives reached or approached in a number of other groups selling at substantial discounts from their 1972 highs, where the fundamentals appear to have changed relatively little. Cases in point would include the Airlines, Leisure Time, Mobile Home, and Tobacco groups. It is conceivable that these two catagones of issues, taken together, could, eventually, provide the leadership for a new upward leg on the advance. The conclusion of all this is that we are not yg ready to suggest that there should be a dramatic shift in our recommended investment policy. We have for the past six months favored the mamtenance of oaffi reserves, and we feel those reserves should be maintained or, perhaps partially scheduled to accumulate stocks in the second category mentioned above on weakness. We have suggested that invested funds be concentrated in the first group above, and wewould suggest that this continue to be the case. Any change in this policy will be dictated by the market's technical action and not b DoV\lla JG9Q& cLnd,au;stJi.ia'lq Jn2-;-QQ,. PheJ'Tlr.. 19- 9-501r2 ntomed IS, or IS to be deE! t , Iy r .nd H e r or the sollcltotlon of on offer torPuf'JOf)!linv-..se';flt'h rrfJ.rn-d 01or mentioned The moiler IS presenled merely for the conc Tscrl!tgf1\ '6'lIIt' brb,veth 10urces of our inlorma- S &..uon toJ.Ml-6b,'M t r6J..j,bt resent or guorantee the accuracy thereof nor of the stateLr'eW-de.Ifl!oU.l A''aIIt&be tlIiH-'erLfoH!! subSCrIber should be AW-bt.rJt on hu own Investigation and Information Janney Montgomery Scott, Inc, as a corporation, and Its officers or employees, may now have, or may later toke, positions or trades In respect to any seCurities mentioned In thiS or any future ISSue, and such position may be d,l/eren) from any views now or hereafter e'l(pressed In thiS or any other Issue Janney Montgomery Scott, Inc, which IS registered With the SEC 05 on Investment odvlsor, moy give adVICe to Its investment adVisory and othel customers Independently 01 any slotements mode In thiS or In any other Issue Further ,formatIOn on any seeurrty mentioned herein IS ovoiloble on request