Tabell’s Market Letter – May 30, 1980

Tabell’s Market Letter – May 30, 1980

Tabell's Market Letter - May 30, 1980
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TABELL'S MARKET LETTER 909 STATE ROAD. PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW VORK STOCK EXCHANGE, INC MEMBER AMERICAN STOCI( eXCHANGE May 30, 1980 market rise from March, 1978 to date. As we noted last week, the S-& P 500 during that period has scored three soccessive higher highs at 106.99 in September, 1978, 111. 27 in October, 1979, and 118.44 last February. These were punctuated by three lows at approximately similar levels of 92.49 in November, 1978, 99.87 in November, 1979. and 98.22 on March 27. During this entire period, group action has shown mazing consistency. More than half of the S & P Industrial groups, 47 out of the 90 under study, have maintained consistent uptrends or downtrends during this period. A consistent uptrend is defined. in this case, as having scored a higher high at each of the three highs mentioned above and a higher low at each of the three lows. 26 groups qualify. Downtrend groups, of which there are 21, are defined as having a consistent record of three lower highs and three lower lows. These statistics, in our view, unrlerscore the principle that long-term, relative trends tend to remain in force. The following table lists the 47 groups referred to with the uptrend group on the left and the downtrend group in the right. For ease of reference, each group is indexed so that the first column, its September 13, 1978 price, is equal to 100. The most recent price is shown in the righthand column. 9 11 10 11 2 3 5 13 15 3 7 13 26 28 78 78 79 79 80 80 80 9 11 10 11 2 3 5 13 15 3 7 13 26 28 78 78 79 79 80 80 80 Aerospace 100 82 105 96 141 117 118 Automobile 100 84 95 83 79 67 66 – Aluminum –DiatiHers 100 92 122 104 151 123 134 Auto Ex GM 100 86 89 77 74 60 55 4 Heating & PL 100 76 107 96 116 97 111 Brewers 100 81 87 72 86 71 84 Conglomerate 100 81 106 95 119 95 112 Soft nrinks 100 84 79 73 74 63 73 Copper 100 90 140 117 212 142 150 Cosmetics 100 88 86 74 67 62 77 Instrumentation100 87 125 112 149 123 129 House. App. 100 84 93 77 81 65 82 Semi-Conduct. 100 81 113 104 129 105 113 Foods 100 87 91 82 87 74 89 Fertilizers 100 75 133 121 171 131 145 Home Furnish. 100 99 99 81 93 74 74 Gold 100 80 135 117 206 171 194 Retail Dept. 100 85 92 83 89 75 90 Home Bldg. 100 58 114 95 147 103 123 Merc. 100 83 85 76 72 62 73 Machine Tool 100 77 126 122 202 168 173 100 89 88 80 80 69 84 Machin. Ind. 100 80 107 96 120 100 107 Steel 100 82 98 81 97 80 84 Metal Fabric 100 73 113 94 126 96 116 Tires & Rubb. 100 89 85 72 75 62 70 Metals Misc. 100 88 140 117 211 148 162 Ve'1(Ung 100 79 80 71 74 56 67 Oil Crude 100 82 160 156 212 165 195 Electric 100 92 88 81 78 72 88 Oil Domestic 100 91 139 136 196 158 154 Telephone 100 97 90 85 84 77 87 Oil Inti 100 93 122 115 147 125 146 Excluding ATT 100 93 95 88 90 77 89 Oil Well Equ. 100 88 126 121 169 143 156 Air Trans. 100 68 71 60 60 51 56 Steel Ex US St 100 84 106 88 109 90 94 Truckers 100 70 77 64 67 58 68 Sugar Refin. 100 74 115 98 147 103 136 Bans (N. Y .) 100 85 94 82 87 76 90 Textile App. 100 89 126 111 148 135 126 Toys 100 79 126 103 152 111 121 Nat. Gas Dist. 100 89 114 103 134 107 120 Railroads 100 86 113 103 143 119 130 Invest. Co. 100 85 105 94 113 98 111 It may be indicative of a shift in leadership that none of the uptrend groups to date has been able to post a new high above its February 13 figure. Twenty-two of the ninety groups under study have, in fact, been able to achieve this, but none of these twenty-two are groups that have fallen into consistent uptrend patterns over the past two years. As a matter of fact, ten of the groups which have achieved new peaks above those of last February appear on the rie-hthand list indicating that their trend may be reversing. These are Cosmetics, Household Appliances, Foods, Retail Department Stores, General Merchandise, Soaps, Electric, Telephone, Truckers, and Banks (N. Y .) . Dow-Jones Industrials (12 00 PM) S & P Composite (12 00 PM) Cumulative Index (5/29/80) 843.43 109.95 814.28 ANTHONY W. TABELL DELAFIELD, HARVEY, TAB ELL AWTsla No statement or expreSSIon of OpiniOn or any other moiler herein contomed IS, or IS to be deemed to be, dIrectly Of ind,rectly, on offer or Ihe soliCItation of on offer 10 buy or sell any security referred 10 or mentioned The matter IS presented merely for the conVellenCE of Ihe subscriber V/hlle we believe the sources of our informa- tion 10 be rehable, we In no way represent or guarantee the acwracy thereof nor of the statements mude herein Any action to be token by the subSCriber should be based on hiS 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 different from any views now or hereafter expressed In thiS or any other Issue Janney Montgomery Scali, Inc, whICh IS registered With the SEC as an Investment advlSar, may give adVice to Its Investment adVisory and othel customers Independently of any stotemenlS made In thiS or In any other Issue Further Informotlon on any secuflly men honed herein IS available on request

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