Tabell’s Market Letter – May 07, 1976

Tabell’s Market Letter – May 07, 1976

Tabell's Market Letter - May 07, 1976
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TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON. NEW JERSEY 081540 DIVISION OF MEMBER NEW YORK STOCK EXCHANGE. INC MEMBEA AMERICA.N STOCK EXCHANGE – May 7, 1976 In contrast with the normal content of this letter, we will not be able to concern ourselves – i n this'issue with'the current.stockmarket.-This .isnot possible-since theletter.is.being..written,,. some three days prior to the issue date. This, in tum, is due to the fact that, at the time readers receive it, the writer, along with those of his associates who would normally prepare these comments in his absence, wlll be m WIlliamstown, Massachusetts, attendmg the First Annual Seminar of the Market Technicia ns Association, an organization which the writer has the honor, this year, to serve as Pres ident. In conducting the Seminar in Williamstown, the MTA is fulfilling one of the purposes stated in its Constitution, to provide meetings and foster the interchange of material, ideas and informa- tion for the purpose of adding to the knowledge of the membership. The Association is pleased to have as its honored guests many noted leaders of the securities mdustry among the 150 who will be attending, and we look forward, as we always do, to meeting with our colleagues and exchanging views and ideas on the ever-changing and expanding techniques involved in our profession. The MTA, moreover, which is now three years old, has a number of other worthwhile pur- poses and some of them, we think, are worth enumerating here. One, for example, again quoting from the Constitution, is to establish, maintain and encourage the highest standards of profession- al ethics and competence among technical analysts. We think this is important. One of the less attractive characteristics that has been known to appear from time to time among investors is that of greed, and there have been those, unfortunately, who, sometimes under the guise of technical analysis, have catered to that greed with claims to prescience that they — and, indeed, all mOr- tal men — lack. Thus, the Constitution contains the following language. The analyst shall not make statements which he knows or has reason to believe are inaccurate or misleading. He shall, in particular, be careful 11—-…–toavoidleadinghisaudiencet0believe.thathis.technically.der-lv.edvlews of future stock price behavior reflect foreknowledge rather than estimates and projections subject to re-examination and, as circumstances may dic- tate, to change. The analyst shall not make statements concerning the current tech- nical position of the stock market or any of its components or any of its as- pects unless he can demonstrate that such statements are reasonable and consistent in light of the available evidence and of the accumulated know- ledge in the field of technical analysis. New departures in technical anal- ysis as well as modifications of existing techniques or concepts are to be fully documented as to procedure and rationale. Another stated purpose of the Association is to educate the public and the investment community to the uses and limitations of technically-oriented research and its value in the formu- lation of investment declsions. As we all know, the value of investment analysis is, these days, being called increasingly into question. The MTA stands squarely for the fact that effort in money management is, indeed, not worthless and, again, its Constitution adumbrates this principle as follows. Moreover, the tendency of price trends to persist and of investors' behavioral patterns to recur enables the technical analyst to recognize and antiCipate potentially favorable or unfavorable investment environments. Indeed, the recognition of extremes in investor psychology is one of the technical market analyst's unique contributions to the field of investment techniques;- . – .. '- liThe Association asserts, in sum, that the technical analysis of — — ….. stock price movements and of the supply-demand relationships underly- ing them is a valid, indeed an indispensable, element in the formulation of a 'reasonable basis' for investment decisions. 11 In summary, we think that the MTA has in the past and will continue in the future to make valid contributions to technical analysis in particular and security analysis in general. We are proud, therefore, to have played a part In the organization over the three years of its existence, and we look forward to continuing to do so. Dow-Jones Industrials (1200 p.m.) 993.31 S & P Compo (1200 P.m.) 101.59 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL Cumulative Index (5/6/76) 596.27 AWT/jb No statement or expression of Opinion or ony other moiler herein contamed 15, or IS to be deemed to be, directly or mdlrectly, an offer or the solicitation of tm offer to buy or sell anI. security referred 10 or mentioned The matter IS presented merely for the convef'lenCt of the subscrlber While we believe the sources of our Information to be fel'ob e, we ,n no way represent or guarantee the accuracy thereof nor of Ihe statements mude herem. Any ocllon to be IQen by the subscriber should be based on hiS own Investigation and 'r'lformallol1 Jonney Montgomery Scott, Inc, LIS (J corporation, and ,ts officers or employees, may now hove, or may kl!er toe, positions or trodes In respect to ony Securities menlloned In Ihls or lny future usue, ond uth position moy be different from ony views now or hereofter epreHed In thiS or any other ISsue Janney Montgomery Scott, Inc, which IS regl!otered with Ihe SEC as on InveStment adVisor, moy give adVice la lis Inveslment odvlsory and olhe CU'tomers Independently of ony statemenlS mode In Ihls or 10 (lny other Issue Further InformotlOn on any security mentioned herein IS available on request

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