Tabell’s Market Letter – December 05, 1986

TABELL'S MARKET LETTER 600 ALEXANDER ROAD, PRINCETON, NEW JERSEY 08540 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (609) 987-2300 December 5, 1986 Tuesday's market performance was, without doubt, impressive. A 2.25 DJIA advance was Coupll!dt-l, 326't1dvancing-stocks,64. 7 -af–issul!s .traded.T.he230;millionshar.ev.o!-ume — constituted 1.46 times the recent average, just under the 1.5 threshold that normally marks a volume reversal. Despite this impressive performance, however, we think it necessary to await further confirmation before affirming a major bull-market continuation. Tuesday was only the 11th day since March which has seen a new high scored. All of the previous occasions saw clusters of new highs followed by a substantial retreat. It is also worth noting that previous moves to new peaks produced fairly impressive rises. April 16th saw a 38-point upswing with 1,305 advances, and the September 4th high was achieved on a 38-point advance with 1,289 rising issues. The current advance, so far at least, seems to be producing little in the way of new leadership. The table below shows the close of the 30 individual Dow components on each of the five days the Average itself posted new peaks. The number of new highs for each stock is shown in the right hand column, and individual new highs by date are shown on the bottom line. Mar 27 Apr 21 july 2 Sept 4 Dec 2 Hlhs ALLIED-SIGNAL INC 46.734 46.059 44.000 41.B75 40.750 0 ALUMINUM CO OF AMER 43.500 40.625 38.375 40.250 35.500 0 AMERICAN CAN CO 76.625 74.500 81.375 BB.375 8B.250 2 AMERICAN EXPRESS AMERICAN TEL & TEL BETHLEHEM STEEL CORP 68.750 t250 20.250 65.B75 25tOOO 18.875 62.000 25.125 14.625 65.375 25.250 9.625 59.750 27.625 5.000 0 4 0 CHEVRON CORP 37.375 3B.750 38.750 46.625 47.875 4 1,-I lJ,LLOJ1LU NEMOURS EASTMAN ODA CO 75.000 78.500 82.875 B7. 000 90.750 4 63.250 59.125 5B7000 57''000 – 1l;875n-I EXXON CORP 56.250 58.625 61.375 70.750 70.500 3 GENERAL ELECTRIC CO 78.000 79.625 Bl.250 7B.625 B4.875 3 GENERAL MOTORS CORP 88.000 82.250 GOODYEAR TIRE & RUBBER 36.500 32.500 78.250 33.500 71.150 35.125 70.750 0 43.125 1 INca 16.375 14.875 12.750 13.625 12.625 0 IBM 149.125 154.875 149.500 139.375 129.B75 1 INTERNATIONAL PAPER MCDoNALDS CORP 61.875 58.750 62.625 69.500 78.875 3 64.083 70.333 75.625 61.875 64.250 2 MERC & CO INC MINNESOTA MINING MFG 84.875 90.250 105.375 113.625 115.000 4 106.375 105.250 114.000 112.500 115.500 2 NAVISTAR INT'L 11.000 11.250 B.875 8.000 5.625 t OWENS ILLINOIS INC 35.750 37.750 39.500 42.500 46.B75 4 PHILIP MORRIS INC PROCTER & GAMBLE 59.438 69.250 76.000 74.875 74.875 75.875 81.750 78.750 75.750 BO.625 2 2 SEARS ROEBUC ca 50.125 47.625 48.375 44.750 45.000 0 lEXACO INC 30.125 32.000 31.000 35.000 35.000 3 USX CORP 22.875 20.250 20.500 20.625 21.1 0 UNION CARBIDE CORP 22.125 24.875 23.875 23.125 23.125 1 UNITED TECHNOLOGIES 53.375 53.250 48.250 47.250 45.70 0 WESTINGHOUSE ELECT 53.625 56.500 53.000 60.000 62.000 3 WOOLWORTH FW CO 38.250 40.188 46.500 44.250 45.875 2 DOW-JONES INDUSTRIALS 1821.72 1855.90 1909.03 1919.71 1955.29' TOTAL NEW HIGHS 16 14 .10 12 The twelve new closing highs of December 2nd bettered the September figure but were inferior to both April and July. Moreover. the issues making new highs on Tuesday were, for the most part, stocks that had been reaching new peaks all along. Evidence of new leadership—by scoring a new high for the first time—was shown by only two stocks, Goodyear, a takeover candidate, and Eastman Kodak. Thus, to date at least, market action remains consistent with a continuation of the last nine months' pattern—a trading range with a slight upward bias. AWTjt Dow Jones Industrial Average 1928.57 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL INC. S P Composite 253.07 Cumulative Index (12/4/86) 32l7.28 NO slatement or epresslon of opmlon or any olher mailer herein contamed IS, or IS to be deemed to be dlrec1ly or indIrectly, an oller or the solicitation of an offer to buyor sell any security fe/elred loor mentioned The matter IS presented merely forthe convenience of the subscriber While we believe the sources of our Information to be rehable, we In noway represent orguaranleelhe accuracy thereof nor of the statements made herem Any action to be laken by the subscriber Should be based on hiS own investigation and Information Detalletd, Harvey, Tabell Inc as a corporal Ion and Its officers Of emptoyees may now have, or may later take positions or trades In respecl 10 any secunlles mentioned In this or any future Issue, and such pOSition may be dltlercnt from any views now or Mlcallel expressed m thiS or any other Issue Delafield Harvey, Tabell Inc which IS registered With the SEC as an Investment adVisor, may give adVice to liS mvestment adVISOry and othc' customers Independentty of any statements made m thiS or In any other ISSUi'! Further mformatlon on any security mentioned herem IS available on request