TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE – March 7, 1975 Market action continues satisfactory and, as we mentioned In this space a mSlnth ago, the likelihood of any-substantlaFcorrectlon'at this early stage of–the advance appears'relatlvelycremote.- There has7 how- ever, been some recent evidence of rotation of Individual stock leadership, and we are, therefore, com- mencing, this week, our occasional practice of a series of letters commenting on Individual industry groups and stocks In those groups. It should be noted that, as is always the case in these letters, comments are based solely on the technical action of Individual Issues and that further fundamental Information on any issue discussed is available on request. AEROSPACE. From a relatlve-strength point of view, this group had acted well through the third quarter of last year, generally moving down less than the market. Since that time, however, most stocks have failed to participate In the advance, and relative action has deteriorated. Potential base patterns remain im- pressive and upside breakouts, 22 In the cast of Boeing (20) and 31 In the case of General Dynamics (29) would Indicate higher levels. Outstanding action In the group Is being shown by United Aircraft (37) which has an upside target of 46 followed by possible higher levels. , AIRLINES. Another example of very sharp relative action reversal where one of the worst-acting groups in the late bear market has turned sharply upward, and was actually responsible for leading the Dow-Jones Transportation Average to a recent new high. Care should be exercised in new commitments, however, as in most cases heavy overhead supply now exists fairly close to current levels. Probably the most outstand- ing pattern is UAL Inc. (23). ALUMINUM. This group is typical of the cyclical issues which had resisted all but the last phase of the late bear market but which then broke downward and, by and large, failed to partiCipate in the recovery. However, by now, downside objectives have been reached, and the group has made substantial progress toward building new bases. We would hold current commitments although the existence of heavy overhead supply from the 1974 tops, In the case of Aluminum Company of America (39) at 42-48, for example, suggests — —that more-b,ising'maybe,r,iquired- – — – — – – — – -, – -. – — – -.- AUTOMOBILES. Long-term relative strength has, unsurprisingly, been poor during the worst automobile year in a long time. Nonetheless, the market appears to have discounted the current dismal fundamentals. Both Ford (36) and General Motors (41),have reached downside objectives and penetrated their long-term downtrend lines. However, technical patterns suggest that further baSing, around the mid-30's for Ford and around the low 40's for General Motors,is probably a necessity before ;lny meaningful upside move can be considered. AUTOMOBILE PARTS. Relative action has remained just about in line with the market for almost three years now. Such issues as Champion (ll), Dana Corp. (21) and Maremont (11) show evidence of having begun a basing process, but it is doubtful if that process is complete. The most Impressive technical pattern is that of Eaton Corp. (27) where ability to reach 32 would indicate considerably higher levels. BUILDING MATERIALS. Here Is a classic case of a market being willing to look ahead as relative strength of these Issues has been Improving since last fall despite the generally abysmal building picture. Those companies Identified with home improvement have the most outstanding technical patterns. Johns Manville (22), although it might decline short-term to Slightly under 20, would be an interesting purchase candidate on such weakness. Action of air conditioning companies has generally been desultory in recent markets. CHEMICALS. Here a wide diversity of indiVidual stock patterns presents itself. Union Carbide (54), despite its recent move to a seven-year high, suggests a longer term upside objective of 96. Industrial gas companies such as Air Products (60) and Chemetron (29) generally show impressive patterns. Dupont reacted well to Its recent dividend cut and seems to be forming a base although more work is probably needed. Allied Chemical (36) and Monsanto (54) on the other hand, while they may well move higher short-term, may encounter problems with overhead supply,at 40-50 fr the forer ad at 60-8 for the latter. CONTAINERS-METAL AND GLASS. American Can (34) and Contlrental Can (28), despite recent sharp moves, both have technical patterns that suggest higher levels. In the glass-container group Brockway Glass (16) has recently broken out of a two-year base with an upside objective of 24. COPPER. Recent relative strength in this group has been somewhat below average. Phelps Dodge (34) has shown interesting basing action recently and could well mount an attack on heavy overhead supply in the low 40's. Kennecott (36) is likely to continue to base in the low to mic!dle 30's but the present potentlalls substantial if an upside breakout can be achieved. Anaconda (17) is probably in the early'stages of a base formation in the 14-18 area. Dow-Jones Industrials (1200 p.m.) 764.78 S & P Compo (1200 p.m.) 83.97 Cumulative Index (3/6/75) 465.46 AWT/jb ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL No statement or expression of opinion or any other mottcr herein Contolned IS, or IS 10 be deemed to be, directly or mdlreclly, on offer or the 501,cltollon of on offer to buy Of sell any security referred o or menhoned The molter 15 presented merely for the converlenc of the subscber While 'i'Je believe the sources of our Informo han to be reliable, we 11\ no way epresenl or guarantee the accuracy thereof nor of the statements mude herein Any action to be token by the 5ubs.cnber should be based on his own Investigation and Information Janney Montgomery Scoll, Inc, as a corporaTion, and Its officers or employees, may now have, or may loter toke, POSitions or trades In respect to any seCUrities mentioned on thiS or any future Issue, and such posilion may be different from any Views now or hereafter epressed In thiS or any other luue Janney Montgomery Scott, Inc, which IS registered with the SEC as on Investment adVisor, may give adVice to Its investment adVisory ond olhel customers Independently of any statements mode In tha or In any other Issue Further Information on any seevflty mentioned herein IS available on request o

— – – – – – – – – – – – , TABELL'S MARKET LETTER I I – ——- -,I – 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEMBER NEW VORl( STOCK eXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE March 14, 1975 ' -. We- are Continuing this-week-cour- revlew-ofindividualindustry groups andstocks. .,AIL com'1'ptsoar-, based solely on technical action of the graups and stacks involved, and further infarmation on any issue mentioned is available upon request. DISTILLERS. Group performance generally has been in line with the market since the early part of 1974. In most cases, the bases formed at the 1973-74 laws were small and, as the stocks have moved up along with the market, objectives are beginning to be reached. Generally, better opportunities would appear to exist elsewhere. DRUGS. Relative strength of this graup has begun to. lmprove, and in general mast issues possess good short-term technical patterns. Johnson & Johnson (93) has an upside abjective af 106, Merck (75) an up- side target of 88, Schering Plough (64) an objective of 78 and Pfizer (35) of 51. Cautian shauld be exer- cised, however, since around the levels of these objectives most issues will be running into. massive over- head supply from their 1973-74 tops. We would, therefore, be extremely watchful for any evidence of pattern deterioration and would be willing to. use the issues as sources of funs shauld antiCipated strength occur. ELECTRICAL EQUIPMENT. Relative action of the group as a whole has tended to. be below average. General Electric (46) has a gaod short-term pattern with a possible objective In the low 60's but runs into heavy overhead supply in that area. Westinghause (15) has rebounded from a low of 9, and its short-term objective has been reached. Probably more work will be needed for a great deal more can be expected an the upside. Cutler-Hammer (24) and I-T-E Imperial (18) have formed fairly impressive bases and cauld successfully penetrate the overhead supply just above current levels. The former has a short-term objec- tive af 36, fallowed by possible higher levels, and the latter an intermediate-term target of 29. ELECTRONICS——-Therehasbe,en.a oshaIR .i1l!Rr-2yen-leotln sll.ort-tE!rl11tive .strength since abaut the first of the year in this group after it had acted poorly relative-to the market since the fa-ll of 1973-;l-esulfing in precipitous price declines, especially in the more marginal issues. In the semi-conductor field, Texas Instruments (90) has been acting well on a short-term basis but heavy overhead supply exists in the 100- ll5 area and we would regard it as a sale on strength to those levels. Most issues in the group appear to possess limited potential in contrast with ather oppartunities available. FINANCE. Graup relative action, which had been above average for most of last year, has deteriorated somewhat in recent months, suggesting that in most cases more base-building will be required. At the moment, one of the most canstructive patterns appears to be Beneficial Finance (18) with an upside objec- tive of 32. FOODS. Despite the general law volatility of this group, relative action has remained abave average even In the recent market rise. Patterns in the group are diverse. Borden (24) has a pas sible upside ob- jective of 34 and Standard Brands (62) one of 96. General Foods (25) has moved up sharply but is now running into fairly heavy overhead supply. Soybean pracessors such as Archer-Daniels-Midland (20) generally possess impressive patterns, this issue recently having broken out of a base suggesting ap- preciably higher levels. Corn syrup producers, the benefiCiaries af the recent sugar shortage, have moved ahead sharply, but higher objectives are readable, including a possible long-term target of 78 for CPC International (40). Sugar stacks, In general, have been subject to recent weakness but in some cases, at least, may be rebuilding bases for a further upside leg. FOREST PRODUCTS. Boise Cascade (17) and Weyerhauser (33) show improving technical patterns with the former having an upside objective of 28 followed by higher levels and the latter a lang-term target in the low 60's. Geargia Pacific (40), by contrast, meets some overhead supply around current levels. GOLD. Depite recent impravement;- majot issuesare rurining into heavysupply at around current – levels. The possible downside implications of major tops formed last year were not fulftlled, and we would regard the group as being potentially vulnerable. HOSPITAL SUPPLIES. Recent technical action has been impressive and higher levels are probably indicated short-term. As with the drug group, however, overhead supply not tao far abave current levels represents a potentially inhibiting farce in the way of a further advance. HOTEL-MOTEL Recent relative strength improvement in this group has been among the sharpest of any major industry, representing a sharp rebound from the extreme oversold condition that existed at the end of 1974. In general, we wauld use recent strength to. shift these issues into other areas. Dow-Jones Industrials (1200 p.m.) S & P Camp. (1200 p.m.) Cumulative Index (3/13/75) 476.02 AWT/jb 768.70 84.24 ANTHONY W. TABELL DELAFIELD, HARVEY, TAB ELL No slclemenl or expression of opinion or any other motter herein contamed 1, Of IS to be deemed to be, directly or Indirectly, an offer or the SollCllatlon of on offer to buy or sell any security referred to or mentioned The matter IS presented merely for the convelImc of Ihe subscriber While we believe the sources of our tnforma- tlon 10 be rellable, we tn no way represent or guorantee Ihe accuracy thereof nor of the statements mode herein Any aCTIOn 10 be token by the subscriber should be based on hiS own Investigation and tnformatlon Janney Montgomery Scali, Inc, as a corporation, and Its officers or employees, mCJy now have, or may later toke, poSitions or trades tn respect to any sCVrllles mentioned tn Ihls or any future Issue, and such POSition may be different from any views now or hereafter expressed tn 'hIS or any other ISlue Janney Montgomery Scott, Inc, which II registered With 'he SEC as on Iflvestment adVisor, may give adVice to Its Investment adVISOry and other rustomers Independently ot any statements mode In IhlS or In any other Inue Further Information on any seC\.JfIty menlloned herein IS available on request

TABELL'S MARKET LETTER 909 STATE ROAD. PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW VOAK STOCK EXCHANGE, INC MEMBER A,MERICAN STOCK EXCHANGE – March 21, 1975 -…. ThemaJtet this wS'ei s p,uttered Jls.j.t PJlwacted.tj1e. 890'-tl–Rpya!-ea oftheDo'&,J()neJ-tls;- '' trial Average. The average from the December 6,1974 low of 577.60 has increased 36-.17 in the' short span of 66 trading days. Two alternatives appear likely. The extent of this move would in- dicate the first leg of the bull market is indeed in a mature stage and a correction warranted. However, the duration of this move indicates the possibility of a further advance from these levels allowing for technical consolidations. In the postwar experience, the length of the move of the first phase of the bull market this old before a 5 correction occurs can be as many as 326 days (9/14/53 – 1/3/55) to as few as 145 days (10/7/66 – 5/8/67). Neither of these alternatives changes our constructive view of the market. We are continuing th,S week our review of individual industry groups and stocks. All com- ments are based solely on technical action of the groups and stocks involved, and further informa- tion on any issue mentioned is available upon request. INSURANCE. Both fire-and-casualty and life companies have recently been showing above average action, although there has been some very short-term deterioration. We would regard Aetna (23), Lincoln National (29) and Travelers (26) all as being attractive commitments for high- grade investment accounts on weakness toward support levels. MACHINERY-FARM EQUIPMENT. Deere (41) and International Harvester (25) have both put in constructive percentage advances since their 1974 lows. However, long-term group relative strength is neutral and stocks appear to be trading in overhead supply. MACHINERY. Group action in these related stocks continue to be mixed. Ingersoll-Rand (74) is broadening potentially constructive patterns in low 70, high 60 area and would look for con…….. -firmationof-BQ longtermbreakout. Black and-Becker (3-1.) -recently-broke-out- of' substantial-ba se – – formation at 30 indicating upside potential of 50. Would use strong support area of 28-26 to technically justify purchase. Majority of stocks such as Caterpillar (65), Chicago Pneumatic Tool (26), Cincinnati Milacron (19) and Clark Equipment (31), to name a few, need considerable time to improve existing technical patterns and would aVOld. MACHINERY-OIL WELL EQUIPMENT. Reviewing this group exactly one year ago, the obvious outstanding performance was then noted and it was suggested that these stocks should be sold on strength. Since that time, Dresser (49), Halliburton (138), McDermott (73) and Schlumberger (103) have technically corrected their spectacular advances and are all selling below their respective prices of one year ago. However, it must now be noted that Improved technical strength is present and would consider Dresser's ability to reach 51, and Halliburton to reach 144 as justification for purchase. McDermott and Schlumberger have already broken out of comparable base patterns in- dicating higher levels. Because of institutional interest in this group, we feel these improvements are significant. MOVIE-TV. Most interesting purchase candidate at current levels could be CBS. INC. (42). Stock has recently broken out of a long-term consolidation area at 42 and indicates upside ob- jective toward the mid-70 level. Disney (43) and MCA (43) have both put in spectacular perform- ances but in the case of Disney, stock is encountering heavy overhead supply in the 42-48 area and MCA is approaching its upside objective m the 50-55 area. Small broadcastmg companies in this related group have had constructive percentage moves from their 1974 lows. However, feel stocks should be sold on strength where heavy overhead supply is present. – — — '.,…. -…;…. — ….– .-… —,;-.- – -;;… -. –;0 – – '—- — – ;.r OFFICE EQUIPMENT. Recent improvement in group relative strength should be examined closely. Burroughs (91) recently broke out of base formation indicating upsIde objectives of 120-158. Digital Equipment (87),having finally counted itself out on the downside,met support in the fall of 1974 in the 50-60 area. Smce then It has consolidated,breaking out of a base formation which mdicated an upside objective of 90. This has been realized. IBM (210) contmues to trade in a short-term neutral trend, breaking out of this trend at 226 on the upside and 206 on the down- side. The stock's long-term upside objective indicates 280. We would continue to hold. Sperry Rand (35) continues to look attractive and feel purchases can be justified on minor weak- ness. Current upside objective indicates 46-51. Xerox (74) has reached short-term upside ob- jective of 80 and time will be needed before pattern will improve. Heavy overhead supply is present. Dow-Jones Industrials (1200 p.m.) 759.39 ANTHONYW. TABELL S & P Compo (1200 p.m.) 83.11 DELAFIELD, HARVEY, TABELL Cumulative Index (3/20/75) 480.53 RJSJr/jb No statement or expression of opinion or any other motter herein contained IS, or IS 10 be deemed to be, directly or indirectly, on offer or the sollcltotlon of on offer 10 buy or sell any security referred 10 or mentioned The matter IS presented merely for The converlenCE of the subscriber While we believe the sources of our mforma lion 10 be reliable, we In no way represent or guarantee the accuracy thereof nor of the statements mude herem Any action to be taken by the subscriber shOuld be based on hiS own Invesllgahon and Infarmallon Janney Montgomery Scott, Inc, as a corporation, and Its officers or employees, may now have, or may later lake, poslltons or trades In respect ta any SeCUrities mentioned In thiS or any future Issue, cnd such position may be different from any views now or hereafter eypressed In thIS or any other Issue Janney Montgomery Scott, Inc, which IS registered With the SEC os on investment adVisor, may give adVice to Its Investment adVisory ond othel customers Independently of any statements made In Ihls or In any other Issue Further information on any security mentioned herein IS available on request

,.- .. ….-r- . , I ITABELL'S I I MARKET I ) LETTER I –oil 909 STATE ROAD, PRINCETON. NEW .JERSEY 08540 DIVISION OF MEM8ER NEW YORK STOCK EXCHA.NGE, INC. MEMBER AMERICAN STOCK EXCHANGE March 27, 1975 ……..—/Last w8ek we presented twoalter-nativ,-esAacing thestock..markeLas-ltapproached….the80-Osu-pply-,,-ar-ea ,,- in the Dow-Jones Industrial Average. Earlier th1S week, aided by the dramatic news events from the Middle East, the market resolved these alternatives. In flve trading days the lliw-Jones Industrial Average cor- rected 1tself from 776.12 to 743.43 or 5.48. The short-term tops formed on our two-point unit and five- point umt charts mdicated a downs1de potential of 728-720; and on an intraday basis these objectives were approached. Subsequently the market reestablished its uptrend. The short time span (68 trading days) of the init1al phase of the bull market ( 36.17) coupled with the volatility of the general market provides us w1th a rationale for the continued sustamability of this move. We complete this week our review of the technical pos1tlOn of the major industry groups. Comments on individual stocks are based solely on technical factors and further information 1S available on request. OILS. The domestlC oils as a group have moved sideways smce advancing from their 1974 lows with no apparent improvement In relatIve strength indicated. The internationals also continue to show poor relative strength action and we would avoid purchases for capital appreciation at current levels. PAPERS. Although group actlOn of the paper stocks has been neutral, lOdividual issues have made sub- stantial percentage gains. These stocks would mclude Crown Zellerbach (32), International Paper (41) and Union Camp (53). The moves appear to be part of a long-term consolldation phase and time w1ll be needed to work through heavy overhead supply. An interesting buy candidate is Weyerhauser (33). Ab1lity to reach 36 would indicate long-term ups1de objective of 62. Support is present under current levels. RAILROADS. In spite of disappointlOg relat1ve strength action of this group, we continue to feel Burlmgton Northern (36), Norfolk & Western (64), which have minor short-term tops, can be purchased on weakness as downside objectives are reached. Also, Seaboard Coasthne (29) continues to trade in strong support area lOdicating higher levels for the longer term . .- – RML-ROAB-EQUWMEN'l'. .One of4hemost-attracHvepatterns1OHtlS-group-is cAmtedIndustne-5e),- -.-.-1–11 whlch recently broke out of base formation mdicating an upside object1ve of 76. Strong support is present in m1d-40 area. Pullman (45) continues to trade in long-term neutral pattern. The ab1lity to reach 51 would break out of 1tS trading area with an upside potential 10 the mid-70's. RETAILING. The long-term relat1ve strength of the retailing department stores remams positive and we would cons1der purchases on weakness. Federated Department Stores (40), Kresge (25), May Department Stores (33) and J. C. Penney (56) are all in the process of broadening potentially constructive base forma- tions; however, time will be needed to develop these patterns in order to penetrate heavy overhead supply. Strongest area 10 retailing group continues to be the fooo stores and we recommend purchase of American Stores (35) which mdicates an upside objective of 46-64 and Safeway Stores (44) wh1ch has an upside objec- tive of 60. Strong support is present under current levels. RUBBERS. Although stocks in this group appear to have reached downSide object1ves, substant1al llme will be needed to improve technical patterns. The exception in this group is Bandag (33). The ability of this constructive pattern to reach 37 would mdicate long-term ups1de objective of 70. SAVINGS AND LOAN. Recent short-term relative strength of these stocks has been impress1ve, most stocks appreciating 100 from their 1974 lows. However, from these levels stocks appear to be encounter- ing heavy overhead supply and we feel time w1ll be needed for further advances. SOAPS. W1th strong support under current levels, Colgate-Palmolive's (29) ab111ty to reach 31 would break stock out of major long-term base indicatmg higher levels. Purchase is Justified. Proctor & Gamble's (94) techmcal pattern 1S neutral. Ab1lity to reach long-term ups1de breakout of 108 mdlCates mitial upside objective of 150. SOFT DRINKS. Coca-Cola (79) has broken out of a long-term base formatlOn wh1ch mdicates a poten- tia1120. Pepsico (60) also-has'broken'out'of'a'base formation which-indlcates ups1de objeCt1ve oe75.- We' would continue to hold both securities but look for short-term relat1ve strength deteriOratlOn. STEEL. Long-terrn pattern of major steel companIes continues to be most constructive. Bethlehem Steel (34), Republic Steel (32) and U.S. Steel (57) have broken out of maJor base formations lndlCatlOg higher levels and we feel purcha se j ustifled. Also ,Armco (30), Inland (40), Wheeling Pittsburgh (25) have strong technical patterns and we would consider purchase on weakness for the long term. UTILITIES. Electric utihtles continue to show below average relative strength and lMe would aVOid pur- chases at current levels. The natural gaS-OIl pipelInes, however, we feel present an interesting buymg opportunity and we would suggest Houston Natural (33) and Northern Natural (58) as buy cand1dates. Also, Kaneb SerV1ces (20) on the American Stock Exchange appears attracllve at current levels. Dow-Jones Industrials (1200 p.m.) 771.59 ANTHONY W. TABELL S & P Compo (1200 p.m.) 83.96 DELAFIELD, HARVEY, TABELL Cumulative Index (3/26/75) 474.18 RJS/jb No statement or expression of opinion or any other matter herein contained IS, ar IS to be deemed to be, directly or md,rectly, an offer or the SOliCitation of on offer to buy or sell any security referred to or menlioned The matter IS presented mllrely for the converlence of the wbscflber While He believe the sources of our Information to be rellCble, we In no way represent or guarantee the accuracy Thereof nor of the Iatements mude he'em Any action to be token by the subSCriber should be based on hiS own mveshgahon and Information Janney Montgomery SColt, Inc, as a corporation, and lIS officers or employees, may now have, or may later Toke, POSitions or trades In respect to any securltle mentioned In thiS or any future ISSue, and such pOSition rn.oy be ddferent from any views now or hereafter expressed In th.s or any other Issue Janney Montgomery Scott, Inc, which IS registered With the SEC as on Investment adVisor, may give adVice to Its Investment adVISory and other customers mdependently of any statements mode ,n thiS or In any other laue further information on any secl.mty mentioned herem IS available On request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCI( EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE I April 4, 1975 J maybecalledthe.fir.st,The,m,Ir(eLhas beenuncjergning, .IJ).thepasttw.ow.eeks ,whaJ .significant respite in the almost unprecedentedly sharp advnce which began on De;;emb; 6' f last yer t 57'7.60– on the Dow and which carried 36.2 to 786.53 on March 17, a penod of 68 trading days. Over a five- day period ending on March 24, the Dow lost some 43 pOints for a 5 1/2 correctIOn before rallying sharply on Tuesday and Wednesday a week ago to reach a closing high of 778.26. Since that time, the averages have again declined, with some wide intraday fluctuations, and ,as of this writing, are testing last week's lows. This strikes us as perfectly normal action since, at the lows of two weeks ago, most market indices, the Transportation and Utility averages as well as the Industrials, had reached the down- side objectives of the small tops that had been formed. Thus, a period of fluctuatIOn will be necessary in order to build a ba se for a new leg of the advance. As was predictable, with the unpleasant memories of 1973-74 so fresh in our minds, the first SIgn of any downside activIty brought forth the usual rash of predictions that the bull market was over or that, indeed, it had not been a bull market at all, but only an interruption in the plunge into the abyss which purveyors of the apocalypse had assured us was commg. ,This latter sort of reasoning seems to us to be particularly specious. Even if St. Patnck's Day, 1975, proves to have been the high point of the advance 'which, in our view, IS highly unlikely), it requires an act of supreme semantic contortion not to call a 36 advance a bull market. Those forecasters who have been conSistently calling for lower levels and those mvestors who spent the first quarter of 1975 sitting on large piles of cash have, quite frankly, missed the boat and can best start off by admitting the fact. The real question, of course, is just what is the technical SIgnificance of the downswing. As we have pOinted out in this space in the past, the tendency of bull markets in the postwar period has been – t o goa—-grea t- deaI-lon;Jer–than-68trad.ing da-ysilief0rethef.irs t;5-correGtion-ensuedW ethmLthefa ct…..- . – that one has taken place this early IS just another demonstration of the fact that markets of late have taken on a great deal more volatility, a volatllity in many ways more characteristic of the 1930's than of the pos twar period. The downswing from January 11, 1973, through October, 1974, for exa mple, had no fewer than 23 swings of 5 or more. It is highly possible that its upside aftermath will demonstrate a like volatility. It should be noted, ,oreover, that in no bull market since the 1920's has the first 5 correction denoted the end of the upswing. It has most often denoted a loss of momentum and meant that the rate of advance compared With that of the initial rally was becoming relatively more slow. This IS, we thmk, the case m the present instance. We have been usmg for some time a projected upside target of 850 for the Dow and have been unwilling, by and large, to look beyond this. The 850 figure is arrived at in two ways. It is, first of all, the most plausible upside obJectlVe for the base formed in the October-December period, and it is confirmed by the bases formed on other averages be- side the Dow, almost all of which suggest a move of like magnitude. Secondly, 850 constitutes an area of Significant overhead supply. For a period starting with the last two weeks of November in 1973 and continumg through the end of June, 1974, the Dow spent most of ItS time trading in a range between, roughly, 825 and 875, With only occasional downthrusts below this area, to around the 790 level. It did this, moreover, on fairly heavy volume, especially in the early part of the period. It has long been our contention that the market's behavior when this supply was reached would be the major determmant of its future action. We are now reaching the pomt where such a test is taking place, t he Dow havmg backed off two weeks ago from the very lowest part of this supply. Moreover, a great many mdivldual stocks, which have outperformed the averages, are now reaching the price levels at which they traded in the early part of 1974 before the final phase of the bear market-break'. In a great many cases; these mdivldual- issues, predictably enough, have begun to back and fill as they reach their individual supply areas. Our own feeling, then, IS that the most likely market scenario is more or less as follows. We would expect the advance m the averages to continue, in fits and starts, and with wider swings back and forth, to around the 850 level. We would expect that that level will prOVide suffiCient resistance to restrain the market on the upside for probably the remainder of 1975. If individual stocks in significant numbers beglr to move through their 1974 supply levels, It would be bullish, mdeed, and possible to project a highly constructive market climate for 1976 and beyond. If the overhead supply turns out to produce Significant distribution, however, a reassessment of the outlook at that point would then be warranted. Dow-Jones Industrials (1200 p.m.) 749.92 S & P Compo (1200 p.m.) 81.26 Cum'cllative Index 4/3/75 466.06 AWT/jb ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL No statement or expression of Op'nlQn or any other motter herein contolned IS, Or IS 10 be deemed to be, directly or indirectly, on offer or the soliCltotlon of an offer to bvy or sell ony security referred 10 or mentioned The molter IS presented merely for the (onverlence of the subscriber While we believe the sources of our nformo tlon to be relloble, we In no way represent or guorontee the accuracy thereof nOf of the Uotements mude herein. Any aCllon 10 be token by the subscriber should be based on hiS own investigation and information Janney Montgomery Scott, Inc, as a corporotlon, and Its officers or employees, may now have, or moy loter toke, positions or trades In respect to any securities mentioned In thiS or any future Issue, and such position may be different from any views now or hereafter expressed In thIS or any other IUue Jonney Montgomery 5colt, Inc, which IS regtered With the SEC as an Investment adVisor, may give adVice to lIs Investment adVisory and othel customers Independently of any statements mode In thiS or In any other lSue Further information on ony security mentioned herein IS avoiloble on request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON, 'NEW JERSEY 08540 DIVISION OF MEMeEA NEW YORI( STOCI( eXCHANGE, INC MEMBeR AMERICAN STOCK EXCHANGE April 11, 1975 . We JO , had the -.. pleasurelast week — .,.F – – oL,ttending.. — — a . m – ee – ti n g of.the – Mar …….. k- et–T-e-c.hn i c i a n' s- A-s sociatio..n… '- a professional organization composed of our fellow practitioners of market analysis and one dedicated …. to raising the standards of that profession. The theme of the meeting was the growing use of techni- cal analysis by professional investment managers and the conclusion was, indeed, that such use had been mcreasing. A secondary theme emerged, suggesting that the reason for this increasing use was that, over the past two or three years, at least, technical analysis had been right or more useful in determining portfolio policy, while fundamental analysis had been wrong or less useful. Now, obviously, as practicing technicians, we are willing to defend the use of technical analysis. but in this case we would also like,at least partially,to defend our fundamentalist brethren. To the extent that fundamental analysis has been wrong since the early part of 1973, it is not, in our view, that the principles of security analysis have been incorrect but that inept security analysis has been in- correct. Let us illustrate what we suggest by this statement. From the first quarter of 1973 through the third quarter of 1974, corporate prof,its rose steadily, earnings on the Dow, for example, increasing from just over 70 to just under 100. During precisely the same period, the stock market went through the most severe bear market it had seen since the 1930's. In the fourth quarter of 1974, earn- ings flattened out and will undoubtedly decrease rather sharply in the first quarter of 1975. That same period has seen one of the sharpest rises in the stock market during the postwar period. To the extent, therefore, that the fundamental analyst has concentrated on forecasting quarter- to-quarter earnings changes and making buy and sell recommendations based thereon, he has, in fact, been wrong. Yet precisely that error has been committed over and over again. It is quite easy to ,teJTlontrlte tha!lacYBf,thlg .ort.of appoi'chillJerJTlcs .. o,!he vrg,-..a.',ehaveone.q9I1e , .. ut , the mistake tends to be committed more often in terms of individual stocks. All too often buy and sell recommendations are made on nothing more than a projection of increasing or decreasing earnings. The now-thoroughly-discredited one-decision theory was nothing more than an extension of this fallacy, suggesting, two years ago, that the favorite growth stocks were appropriate conservative in- vestment vehicles because their earnings were continuing to increase, without regard to the price being paid for those earnings. None of this, however, is a criticism of security analysis itself. It is simply a criticism of security analysis misapplied. The suggestion that technical work, to the extent that it was able to forecast the market decline of 1973-74 and the subsequent rise in 1975,was correct and that funda- mental analysis, to the extent that it failed to anticipate these phenomena,was incorrect, raises some interesting paints about the relative roles of the people who are, or should be, involved in portfolio strategy deciSions — the security analyst, the technician and the portfolio manager. We have often suggested, not entirely facetiously, to our fundamentalist colleagues, a golden rule that the security analyst should be prohibited from ever using the words buy or sell. We are, incidentally, perfectly willing to extend the same prohibition to the technician. It is the third party, the portfolio manager, who should ultimately make the buy or sell decision. Quite obviously, inputs from the security analyst and the technician should be important to him in that decision, but they will not be the sole inputs, since he must also concern himself with the nature and objectives of the funds under management. What we are saying, in other words, is that it is the role of the security analyst to present facts about individual companies and industries. These facts include shorterand-longer-range .earnings – -projections, assessment of the factors that-ight cuse chan'ges in these projec-tiOM, anaiysis of financial condition and, not least, an assessment of the relative value offered by a given security at a given price both on an historical basis and compared with alternative investment opportunities. All of this can be done without once uttering the two no-no words above. The techniCian, equally, can concern himself with identifying the major and minor trends for an individual security and for the general market and with an assessment of the prospects for a reversal of those trends. This also can be accomplished without specific suggestions of purchase or sale. The portfolio manager, adequately supplied with the inputs mentioned above, coupling them with his own professional expertise and knowledge of the requirements of and risk aversion of the funds under management, is well-equipped to make the ultimate purchase or sale decis'ion. Dow-Jones Industrials (1200 p.m.) 783.09 S & P Compo (1200 p.m.) 83.79 ANTHONY W. TABELL DELAFIELD, HARVEY. TABELL Cumulative Index (4/10/75) 468.23 AWT/jb No statement or e)tpre10n of opU'lIon or any other matter here'n contomed IS, or IS to be deemed to be, directly or mdlrectly, on offer or the OII(;.lollon of an offer to buy or sell ony security referred to or menhoned The matter IS presented merely for the convellence of the subscriber While we beheve the sources of our information 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 Ihe subscfI\ler should be based on hiS own Invesllgahon and Information Jonney Montgomery Scott, Inc, as a corporation, and Its oHlcers or employees, may now hove, or may loter toe, positions or trade In respect to any securities menloned In thiS or any future ISSUe, and such position may be different from any vlev..s now or hereafter epressed In t!'us or any other Issue Jonney Montgomery Scott, tnc , which IS rllglslered With the SEC os on mveSTment adVisor, may give adVice to its Investment adVISOry and othel customers Independently of any statements mode In thiS or In any other Issue Funher mformatton on cny security menttoned heretn IS available on request

— TABELL'S MARKET LETTER 909 STATE fiOAD, PRINCETON, NEW JERSEY 08540 DIVISION OF MEM8ER NEW YORK STOCK eXCHANGE, INC MEMBER AMERICAN STOCK eXCHANGe – April 18, 1975 –. -T- h..-e stock market – ' . -.- . reminded us -. – – once more last .– – , – w-.-ee.-k t h-.a-t bul l m' -a r k-e ts be.. ….– ha ve li – k-e- bull – mar-k.-ets..;;. .. …….oc ,- During the latter part of March, the sharp advance from the December lows had suffered its first mod'' erately protracted interruption, declining some 5 1/2 over a sui-day period. There ensued a three- day rally, a six-day ,test of the previous lows, and that was it. The past eight trading days have seen a 76-point advance on the Dow, from a close of 742.88 on April 7th to Thursday's close of 819.46. Many observers, even before last week's rally, have expressed surprise at the velocity of the advance. We have, ourselves, noted that recent events suggest the emergence of a market volatility more reminiscent of the 1930's than the 1950's and 1960's. Yet in a way, it is unsurprising that the advance from the 68Q to the 780 level on the Dow took place over a short period of time — unsurpris- ing in the sense that there was almost total lack of overhead supply between those two points. The following table breaks the range of the Dow for the 1973-74 bear market into 10-point brack- ets and shows, for each 10-polnt range of Dow-Jones closes, the number of days between January 11, 1973, and December 6, 1974, on which the market closed in that range. It also shows the total vol- ume for thos e days. DOW-JONES NO. OF TOTAL DOW-JONES NO. OF TOTAL … RANGE —— – DAYS .. VO-L-U-M-E—- RANGE DAYS VOLUME ——— ———– 570 580 1 15,500,QOO 820 830 18 263,970,00 580 590 3 41,950,0('0 830 840 16 237,260,000 590 600 2 26,200,000 840 850 25 317,870,0;;0 600 610 8 111,96Q,00r 850 860 33 478,920,QOG 610 620 – – -.620–6'30 6 75,850,000 -3-4'3'0'(''O 860 870 8'10–8'30 18 26t,260,000 26-.-364 ,10-.0(lO 630 640 6 84,350,00. 8.0 890 25 355,160,000 640 650 8 133,030,00(; 890 900 20 305,340,000 650 660 14 20r,140,OOO 900 910 15 217,940,0.1(; 660 670 10 158,270,000 910 920 16 242,820,000 670 680 11 178,020,0('0 920 930 17 267,310,0'0 680 690 2 28,2'0,000 930 940 15 240,140,000 690 70n 0 0 940 950 14 234,030,00( 70r. 710 1 15,690,OOfl 950 960 19 303,550,000 710 720 1 1,650,OO 960 970 20 3 .. 4,370,000 720 730 2 25,490.01)\ 970 980 21 349,790,000 73n 740 2 21.640,Qon 980 990 5 87,920,00 740 750 1 11,750.000 990 -10O', 5 86,270,000 750 760 5 57,320,000 10nl, -1010 2 42,000,000 760 770 4 43,860,00; 1010 -1020 2 34,630,00 7,0 780 (, 78,50C.OOr 1020 -1030 5 93,20,OGG 780 790 8 11 3,370.0 0 1030 -.1040 1 22,230,00 790 80n 80n 810 8 95,480,OnO 16 218,730,00 1040 -1050 1050 -1060 0 1 25,05C,I)O 810 820 15 222.230.000 As the table clearly suggests, the break from 780 to 680 was so sharp that there were very few days with very little volume while the market was trading in that range. There were only 24 days dur- ing the bear market on which the Dow traded between 780 and 680'land less than 300 million shares of volume,occurred-in that,price range. By contrast, as the table.shows, the volume of trading-in the range 800-860 was intense. There were 123 trading days on which the Dow closed within that range, and the total volume for those trading days was a staggering 1.7 billion shares. As can be seen from the table, the price range with the heaviest trading was between 850 and 860 where almost a half bil- lion shares changed hands on 33 trading days. The paucity of overhead supply between 680 and 780 goes a long way toward explaining the ease with which the stock market has been able to accomplish its rise from January to mid-March. The heavy supply in the low 800's, however, suggests some possible difficulty in extending this rate of rise much longer. Dow-Jones Industrials (1200 p. m.) S & P Compo (1200 p.m.) 816.88 86.85 ANTHONY W. TAB ELL DELAFIELD, HARVEY, TABELL Cumulative Index (4/17/75) 483.20 AWT/jb No statement or epreS5lon 01 opinion or any other motter herln on'otned IS, or IS 10 be deemed to be, dHectty or Irldlfectly, on offer or the soliCitatIOn of on offer to buy or sell any security referred 10 or mentioned The matter IS presented merely for Ihe conver,ence of the subscriber While we belllilVe the sources of our Informa- tion to be rellcble, we In no way represent or guarantee the accuracy thereof ncr of the stolementt mude herem Any action to be token by Ihe subSCriber should be bosed on hl own investigation and Information Janney Montgomery Scolt, Inc, as a corporation, and lIs officers or employees, may now hove, or may later toke, pOltlans or trades In respect to any secufltles mentioned In thiS or any future ISsue, and such position may be different from any views now or hereafter expressed rn thIS or any other Issue Janney Montg.omery Scolf, Jnc, which IS registered With the SEC as on ,vestment advls-or, may give adVice to Its rnvestment adVisory and othel ClJstamers Independently af any statements made In Ih,s or rn any other Issue Further onformahon on any security mentioned herein 15 available n reql,lesl

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEMBER NEW VORK STOCK EXCHANGE, INC. MEMBEA AMERICAN STOCK EXCHANGE April 25, 1975 -Marketacticinovr tl1epastweek has follc;ceci(namil1ar pittern—–After attainintab-ull mar– –,, ket closing high of 819.46 on April 17 — with an intraday high of an astonishing 835.18 — the Dow dropped off sharply, rallied a bit, and then began a 2 1/2-day slide to an hourly low of 797.48 on Thursday before again moving ahead. As of midday Thursday, the average had actually reached the most plausible downside objective of the miniscule distributional top that had been formed, the decline being of even less magnitude than the six-day drop which occurred during the third week of March. All of this simply underscores the fact that corrections in bull markets tend to be rather short, tepid affairs. Normal action at this point would call for a short period of consolidation followed by another upward move, in all probability to new high territory. Markets like the present one are actually the easiest environment in which to operate, at least as far as the market technician is concerned. As a technician, he is aware, as Harold Schreder was probably the first to pOint out, that stocks and the stock market are moving objects and display the dynamics associated with moving objects. A market that has established a great deal of momentum, upward in the present instance, does not, historically, turn on a dime. It, instead, goes through a long process of slowly lOSing upside momentum before the balance ultimately shifts in favor of the downside. The technician is also aware that this process tends to be more protracted at tops than at bottoms. Bottom reversal patterns can often form quickly, the last one, a scant three months long in October – December, 1974, being a perfect example of the genre. Tops tend, on the other hand, to be more protracted affairs with upside momentum being dissipated very slowly and with noticeable sideways movement before the balance finally – -Snlftstothe'downsTile—Sucha process-,- needless to say;-ifirideea ifha-g'b'egun -at all–;-fs no''w,–.of-;,i, in its earliest stages. The other thing that makes the present sort of environment easy for the technician is that he has a fairly clear-cut idea of what he should be looking for. There are a number of characteris- tic indicators that have had a tendency to behave in certain ways at past reversal pOints. It is, quite obviously, with these indicators that the technician should be spending a great deal of his time. At the moment the great bulk of these devices show absolutely no negative connotations whatsoever. Three possible exceptions to the above should be noted. The first is the existence of heavy overhead supply at around the 850 level which was discussed at some length in last week's letter. The second possible negative is market breadth. No major bear market in recent experi- ence (with the exception of 1968-70 in which breadth deterioration took a different but notice- able form) has begun without a so-called breadth divergence, l.e., an instance of the Dow Jones Industrial Average attaining new high ground without an accompanying high in daily and weekly breadth indices. The potential for such a divergence now exists. Our own daily breadth index, as an example, reached its high on March 17 and did not move into new high ground on last week's rally. However, there is no reason why this factor, at the moment, should be interpreted negatively. In many cases in the past, confirmation of new highs by breadth has taken place only after a three or four month delay and, furthermore, divergence has tended to lead actual tops by periods of as long as a year. 'jhe condition, however, remains present and should be watched – — — – …, –….., — —– – – – – – – . —- A third possible negative is the action of the Dow-Jones Utility Average which made its high back in early February and failed to attain new highs either in the March or April ralhes. Like breadth, however, this negative indication could easily be cancelled by ability of the util- ities to rebase and move toward their former highs. We have, quite clearly, now reached the stage where we should be looking at indicators cf loss of upside momentum, and we have tried to suggest above some of the things that ought to be scrutinized. This scrutiny will, of course, continue, but, at the moment, it results in no dis- covery of evidence suggesting substantially lower prices. Dow-Jones Industrials (1200 p. m.) 807.96 ANTHONY W. TAB ELL S & P Compo (1200 p.m.) 86.49 DELAFIELD, HARVEY, TAB ELL Cumulative Index 4/24/75 AWT/jb 481. 02 No statement or expression of opmlon or ony other motter herein contolned IS, or IS 10 be deemed to be, directly or ,nd,rectly, on offer or the 50ilcltohon of on offer to buy or sell ony SeC\Hlty referred to or mentioned The moIler IS presented merely for the conVe1lenCE of the subSCriber, While we believe the sources of our Informotlon to be reliable, we In no way represent or guorontee the accuracy thereof nor of the statements mude herein Any action to be tocn by the subscllber should be based on hiS ONn Investigation and information Janney Montgomery Scol!, Inc, as 0 corpora/Ion, and 115 officers or employees, may now have, or may loler take, poslitons or Irades 1M respect 10 any surltles mentioned In Ihls or any future Issue, and such pOSItion may be dllferent from ony views now or hereaher expressed 1M thiS or any other Issue Janney Montgomery Seot, Inc, which IS registered With the SEC as on IMvestment adVisor, moy give odvlCe to Its IMvestmenl adVISOry and other customers Independently of any statements made In thiS or 1M any other Issue Further mformallon on ony security mentioned herem IS ovolloble on request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON, NEW JERSEY 06540 DIVISION OF MEMBER NEW VORK STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE – May 2, 1975 -…– We have noted in this space in the past that the stock market has, of . …… — – ………. ……. 0 — -.–'-la'te,be.ens.l..-emo-nst-r-at-ingvOLo.- la-, – …… tility-more sirtiilaYto that -of the-r9Td'stiian tne 1940-1970 period. It is, perhaps, worthwhile to document some of the tentative evidence in favor of this conclusion. One mea sure of volatility in a given year is the number of days showing large percentage changes, either up or down, during that year. The following table shows the number of trading days in each year since 1926 that the percentage change of the Dow fell …within various ranges between under 1 and over 5. YE AII -u 1-21 2-31 341 4-51 sr . -..YEU -1I 121 -!I 341 4-51 5h 121 133 55 e I I III 1'151 255 2e 0 0 I'J IU1 1&4 4 c I 0 0 1'152 210 II 01 III '12e 2\4 &8 A 4 III I U5 235 I'! I III III III 1'12'1 154 84 25 II 5 12 1'154 235 15 2 I!I 0 I'J 1'130 14 'II i!& 20 8 4 155 ill4 3(11 1 III III I 1f/31 102 'II 56 il5 13 \3 15 ill 32 III III I'J '1'II! 'I &0 4& 34 i!'! 35 1'157 ill2 32 1 III I 1'133 120 71! n 27 !1 15 235 1& I 01 134 1'12 H 21 2 2 2 1'15'1 il1 3! I III 0 III 1'135 233 5'1 'I 0 0 I'IU 212 3'1 I 0 III 0 1'131 244 44 12 I III 1'111 228 22 III 0 II 01 ' .1937 181 73 20 1 & 7 1'1&2 188 50 l! I 1 1'138 1&I A2 3'1 12 5 2 1'163 237 \I 20I \'13'1 21'1 55 1'1 II I 1'1&4 208 '3 0 0 0 III 1940 cO 37 1 1'101 257 9 3 –.,…,.,, '19irz-' i! 5 7'0 0—il 143 218 !0 c 3 2 0 I 4 i 1'1&5 3'1 00J.'I&2(11 0 0 1&7 232 II 0 I'IH 21118 13 44 19 1& 0 0 (lO – 20' (11' .. – 'II II 0 i! 0 0 1\ 1944 2'11 7 0 0 0 19&9 218 32 II 11 0 145 257 28 I 0 0 0 1'17(11 1'12 51 8 2 III I 1'146 213 48 13 4 i! I 1'171 2\7 34 1 I e '1947 235 42 5 I 0 1'I7 25 2& 0 0 0 ' ,1'148 241 29 5 2 01 0 1973 15'1 7'1 10 4 II ,I'ln 2&1 21 II II 0 0 IHO 134 75 4 8 2 1'1'''' 242 31 & I I III 191 os 2'1 8 I 0 'The statistics are interesting. For the years 1926 through 1928, a highly placid market climate pre- vailed in which well in excess of 200 trading days saw percentage changes of less than 1, and there were very few wide swings. This abruptly changed in the 1930's. In the bulk of these years, the number of days on which the percentage swing was under 1 was just a bit more than half of the total trading days, and the number of days in which the percentage change ran between one and two per cent generally reached 70 or better. Likewise, especially during the 1929-32 bear market, there were a number of days on which percentage swings were considerably wider. Then, starting in 1940, as can be seen, the pattern of the 1920's returned and remained pretty consis- tent through the period. The only years in which a noticeable increase in volatility took place were the bear market years of 1962 and 1970. In 1973, as near as we can tell, the pattern abruptly reversed itself. Both 1973 and 1974 saw fewer days with a percentage change of less than 1 than any year since 1933. Likewise, the number of days on which price change ran 1 or greater exceeded any-year since the-lafterpart6fTlfe-1930(S – A partial explanation of this lies in the fact that 1973-74 constituted a continuing bear market, and volatility, as the table clearly shows, tends to increase in such a climate. What is interesting, however, is that the pattern is continuing so far into 1975, one of the sharpest up-years in market history to date. If one were to annualize the 1975 figures, for example, there would only be 137 trading days with less than 1 change, 88 where the change was 1-2 and 27, where the change exceeded 2. Thus, the vola- tility pattern established in 1973 apparently continues. If this sort of thing is, indeed, the wave of the foreseeable future, it is quite obvious that some of the investment strategies a ppropriate to the last 30 years may be inappropriate in the 1970's. Dow-Jones Industrials (1200 p. m.) 840.82 S & P Compo (1200 p.m.) 88.94 ANTHONY W. TABELL DELAFIELD, HARVEY, TAB ELL Cumulative Index (5/1/75) 483.34 AWT/jb –N-,-,-'o-',-m-,,-'-'–'–'–'''-0'-0-'-''-'0-0-0-'-oo-y-,-th-,-,-m-o'–,–h,-,,-,,-'-o–o,-,,-d–,–o-,-,,-,-,-b-,-d.-,-m-,d–'-,-b-,-d-,,-,,-'-,-,,-od,-,,ct'y,-oo-';ff'-''-;'h'-'O',,o,,,;o'-;o-o;;ff'' to buy or sell ony security referred 10 or mentioned The motter IS presented merely for the convenlena. of the subscriber. While we bell!!ve Ihe SOUfces of our Informa- tion 10 be relmble we In no way represent or guorantee Ihe accuracy thereof nor of the statements mude herein Any octlon 10 be token by Ihe subscriber should be bosed on hiS own' ,nveshgollon and mformOhOl Janney Montgomery SCali, Inc, as () corporOhon, and lIs officers or employee may now hove, or may loler loke, POSitions or trodes In fCSP!!ct 10 any secUrities mentioned on Ihls or cny future Issue, and such POSlllon moy be dlfferen from ony views now or hereofter e'pressed in thiS or any other Issue Janney Montgomery Scott, Inc, which IS registered wiln Ihe SEC os on ,nvestment odvlsor, may g,ve adVice to Its investment adVisory ond olhel customers mdependently of any tatement mode m thiS or .n any other Issue Further Information on any secullty mentioned here.n IS available on request

TABELL'S MARKET LETTER , I 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEMeE R NEW YORK STOCk eXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE May 9, 1975 We first suggested in this space on January 10 that the most plausible upside objective for the Dow, – , assuming theOctober.-December-,-1975 double bottomto-be'abase format-ion,was850-.This'week;–less- I– than four months later after a move which astonished most observers, including ourselves, by its rapidity, the Dow reached a closing high of 855.60, thus attaining the objective of the base completed in the latter three months of last year. As we have been noting in recent issues of this letter, the momentum of the advance should from this point on be more severely tested, since the overhead supply of stock existing at current levels remains heavy. We have, since January, been using the Dow as a benchmark for talking about the general market and, indeed, if one looks at the performance of that index versus the other major indices since the lows of last October, there is reaJly not much overall difference. The Dow, as of Monday, was 46.3 above its October low, the S & P 500, 44.6 and our CumulatlVe Index was lagging slightly behind, having posted a 35.5 advance from its October bottom. However, if one breaks the performance of the three indices into shorter time intervals, an interesting phenomenon emerges. The following table shows the level of the three averages at various turning paints between October 4, 1974, and May 5, 1975. Cum Cum Cum DIIA Chg. Chg. S&P Chq. Chq. CUM. Chq. 10/4/74 584.56 62.28(10/3) 355.91 11/5/74 674.75 15.4 15.4 75.21(11/7) 20.8 20.8 410.31(11;11) 15.2 15.2 12/6/74 577.60 -14.4 – 1.2 65.01 -13.5 4.3 359.99 -12.3 1.1 1/10/75 658.79 14.1 12.6 72.61 11.6 16.6 399.50 11.0 12.2 1/21/75 641.90 3/17/75 786.53 – 2.6 22.5 9.8 34.6 70.70 86.01 – 2.6 21.6 13.5 403.56 38.1 491.52 1.0 13.3 21.8 38.1 3/24/75 743.43 – 5.5 27.1 81.42 I .4/17/7-5819.40..,..,.A–JO ..240 .1–87.-25 – 5.3 30.7 466.98 – 5.0 31.2 ,'7—2—4-o1-4-83–20- —5—3-;8—1-'. 4/29/75 803.04 5/5/75 855.60 – 2.0 6.5 37.3 46.3 85.64 90.08 . 1.8 37.5 478.64 5.2 44.6 489.55 – 1.0 34.4 2.3 37.5 What is quite clearly shown is that the Dow was underperforming the other averages during the base- building stage of the advance from October to December and about equaling their performance on the ini- tial phase of the raJly from January to March. Since that time, the Dow has been outperforming the other averages and in effect has caught up with them and passed the'll. As the table shows, the first obvious instance of underperformance by the Dow was its move to a new low in December which both of the other averages refused to confirm. Its October-November rally was considerably less than that of the S & P and its November-December decline was steeper. In mid-January, of course, all three averages broke out of their base formations and staged the most dynamic phase of the advance, terminating on St. Patrick's Day, 1975. For this period aJl three of the advances were Similar, but the Dow, having underperformed previously, was stiJllagging the other two. As can be seen, however, the recent history is just the reverse. The Dow has clearly outperformed both the S & P and Our Cumulative Index on both the March-April and April-May rallies, and the S & P 5'00 has, equally noticeably, outperformed the Cumulative Index. Quite obviously, the most recent month and a half of the upmove has been concentrated to a large degree in Dow- Jones components. What are we to make of aJl this It is, first of aJl, not that unusual a phenomenon, very possibly caused by the fact that buyers ,after a long bear market, tend to prefer the relative security of familiar, blue-chip names. The Dow's strength has, of course, produced the potential divergence between the Dow and breadth, to which we have referred in past issues of this letter. The Dow has scored two suc- f cessive raJlies!onew hi9hos (long wih the P 50.Q.t a lesser eox!ent) ,hilebreadt.!'.5nd ;,urCuula;. -,- t!ve Index)-have failed to conhrm'these highs. However, the action of breadth has been good enough so that a future confirmation could come at any time,so that we are not as yet deeply disturbed by the phenomenon. A large part of the discrepancy, we think, can be explained away simply enough by the fact that many Dow components were deeply undervalued in relation to the market at last faJl's depressed levels and have simply been correcting that undervaluation over the past few months. Indeed, a great many of those same components indicate even higher levels from a technical point of view. Thus, while the above-average Dow performance may constitute evidence of some narrowing of the advance, we do not think that narrow- ing is yet pronounced enough to become unduly disturbed about the general market outlook. Dow-Jones Industrials (1200 p.m.) 845.67 S & P Camp. (1200 p.m.) 90.12 ANTHONYW. TAB ELL DELAFIELD, HARVEY, TAB ELL Cumulative Index (5/8/75) 492.99 AWT/jb No statement or e.presslon of opmlon or any other matter herein contamed IS. or 1510 be deemed to be. directly or Indirectly. 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