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 October 16. 1986 We have used many issues of this letter over the summer to describe the trading range which has confinedthELDow-since.-early-ihiS-year.—-J.t…is…-1hexefore.-perhaps.appr.opriate to consider it….vJsually…. . To depictthisaction. we have chosen point-and-figure charts of the three major Dow-Jones Averages. using a 10-point unit for the Industrials. 5-point for the Transportation and I-point for the Utilities. This approach illustrates both the hope and fear engendered by the current stock market pattern. We have chosen March 27th as the beginning of this range since, on or around that date. almost all major indices were in gear on the upside. The Industrial Average chart. shown below, specifies the dates of the four major tops and the four bottoms that have constituted the range. so far. There are, thus. within the range's confInes, four completed short term down moves and three completed upward moves with a fourth probably now underway. These individual moves have been rather small, ranging from 4.73 to 8.85. In time. the downswings have lasted between 6 and 21 days and the upside swings from 10 to 31 days. Typically. each downward move has been shorter than the upward one which preceded it. We have been describing this 'pattern as a trading range with a slight upward bias. and as far as the DJIA is concerned. we think thIS remains correct. The other two Averages. however. have each proceeded on their own merry way, independent of the Industrials and, interestingly enough. in precisely opposite directions. The Transportation Average shown at left below is a discernably different pattern. After peaking at 830.84 (with the Industrials around 1820. the Transport Average failed to score a new high in April and collapsed on August 4th to a new low. down almost 15 percent – from-its-peak;-ur-better-ttmntce-th'e-decllne-shown-by- the Industrials to that point. From this low. however, the carriers began a period of outperformance. actually reaching a new bull-market high this week. The pattern seems to us to constitute a fairly obvious head-and-shoulders base. and an upside objective of 885 appears called for. The Utility chart below. interestingly. looks like the Transportation Average turned upside down. At March's end when the Transportation was peaking and the Industrials showing their flrst top. the DJIA had reached 193.73. There was a slight correction during April. but. a week before the September top. the index had reached 219.15. From that point. a free-fall decline took it to 198.78. a level which continues to be tested. The potential top pattern suggests at least a decline to the 190-180 support area where the Average traded throughout April. The hope for the stock market. it seems to us, lies in the diversity of these patterns. Presumably, the Transportation index has already completed an intermediate-term correction, and the Utilities are well on their way to doing so. If this sort of process rotates from sector I;'\ITI!i! to sector and group to group. it could turn out that the market will complete a period of rotating leadership without severe damage on the downside and a significant number of industry groups-will wind up in new uptrends.- Fear for the market, however, arises from the Industrial's pattern. We have. on the chart above. presented the history since mid-1984 to illustrate how little support exists between current levels and 1200. We noted in mid-September that, if the formation were to be read as a top, the downside objectives could be well below current levels. Now. the recent pattern suggests a short-term uptrend with objectives of 1880-1910. yet another test of the former highs. If we are to read this as broadening of a top. the ultimate risk approaches fairly awesome levels. As we have said before. we prefer the security of a defensive position until this particular dilemma is resolved. ANTHONY W. TABELL AWTjt DELAFIELD. HARVEY. TAB ELL INC. Dow Jones Industrials 1826.35 S & P 500 238.34 Cumulative Index (l0/15/86) 3108.96 No statement or expreSSion of opinion or any other malter herem contained Is, Of Is 10 be deemed to be, directly or indirectly. an of/er or the soliCitation of an offer 10 buy or sell any security referred to or mentlonod The matter IS presented merel fOlthe convenience of Ihesubscrlber White we behcelhe sources 01 our information 10 be reliable we In no way represent or guarantee the accuracy therool nor altha statements made herem Any action to be taken by the subSCriber should be based on hiS own Invesugallon and Informallon Delafield, Harvey. label! Inc, as a corporation and 115 oUlcers Of employees, may now have or may later lal;e poSitions or trades In respect 10 any secUrities mentioned In thiS 01 any future ISSue, and such position may be different Irom any views nowOl heleafter expressed In this or any other Issue Delafield, Harvey, TabeTi Inc which IS registered wllh the SEC as an Investment adVisor, may give adVice lOlls Investment adVISOry and olhe' customers Independently of any sfatemenls made In thiS or In any othor Issue Further Information on any security mentioned herein IS available on request

– – – – – – – – – ———,c—-.,.-,–,,—- —– ——…. –… …–,.. .'– – …. —-… TABELL'S MARKET LETTER 600 ALEXANDER ROAD, PRINCETON, NEW JERSEY 08540 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (6091987-2300 October 24, 1986 In spite .a twenty- on performance of the stock market for the week to described as unimpressive. The current position of the market is smack in the middle of the often referred to trading range which has confined the DJIA from March of this year between a high of 1919.71 and a low of 1755.20. Within this trading range there have been four completed short term down moves and four up moves as shown in the table to the right, together with the percentage change and the length of each move. DATE DJIA CHANGE OF DAYS Closer examination of the market during this time period using Standard & Poors group indexes as a proxy shows an interesting process developing. 0 n the back page these Standard & Poors groups are ranked by percentage change best to worst for two periods, March 26, 1986 to July 30, 1986, and July 30, 1986 to October 22, 1986. Dividing the trading range into two separate periods dramatically demonstrates the diverse behavior of these Standard & Poors groups from one period to 3/27/86 4/07/86 4/21/86 5/19/86 7/02/86 8/01186 9/04/86 9/29/86 10/17/86 1821.72 1735.51 1855.90 1758.18 1909.03 1763.64 1919.71 1755.20 1837.04 0.00 -4.73 6.94 -5.27 8.58 -7.62 8.85 -8.57 4.66 o 6 10 20 31 21 23 17 14 the next. Reviewing the March/July rankings, we are aware of the continued outstanding performance in the consumer non-durable sector as reflected by the ten best acting group. Also the ten worst acting groups for the same period, although severely depressed, provide no real surprises. What is interesting, however, is the performance of these same groups from July 30 to October 22. 1 Steel 38.1781 2 Copper 36.7979 3 Personal Loans 34.2895 4 Gold 29.9145 5 Tires & Rubber 27.7657 6 Chemicals – Div. 20.3569 7 Oil Well Equip. & Ser. 18.4407 8 Truckers 18.0932 9 Canadian Oil & Gas 17. 2505 10 Forest Products 16.9716 84 Drugs 85 Retail Stores (Drug) 86 Soft Drinks 87 Retail Specialty 88 Cosmetics 89 Resta urants 90 Entertainment 91 Beverages Brewers 92 Savings & Loan Cos. 93 Toys -6.2315 -6.8254 -7.3735 -7.4176 -7.4478 -7.8510 -8.8105 -11.0862 -17.7156 -20.0714 The list above shows the percentage change of the ten best and worst groups for this period. New to the ten best list is the natural resource sector which includes groups such as steel, copper, chemicals and forest products. Another major sector which is showing improved relative performance is energy. Groups such as Oil Well Equipment (18.4), Oil Domestic (16.5) and Oil International (13.5) are technically positioned to assume new market leadership. Just as surprising for this period is the representation of the consumer non-durable sector in the ten worst performing groups. As this letter has pointed out repeatedly in recent weeks, there is a potential top formation present from this trading range with downside objectives substantially below current levels indicated. However, something is going on within the limits of this defined trading range. It is possible that this process of rotational leadership from sector to sectorand.groupto,group,cou1d–… — -evoivewithout major damage on the downside to the general market. bringing to the fore new leadership in sectors such as natural resources, energy and transportation. It might be premature to identify this process so early, and we should not lose sight of the potential technical vulnerability in the general market, but it must be monitored closely — RJSmmr ROBERT J. SIMPKINS, JR. DELAFIELD, HARVEY, TABELL INC. Dow Jones Industrials 1839.57 Standard and Poors 500 239.17 Cumulative Index (October 23, 1986) 3115.69 NO statement or eJO'presSlon 01 opinion or any other mailer herein contained IS or IS 10 be deemed to be, directly or indirectly, an offer or the SoliCitation 01 an offer to buy or sell any security relerred to or mentioned The matter IS presented merety lor the convenience of the subscriber Whllewe believe the sourcesol our information 10 beretlable, we In no way represent orguaranteelhe accuracy thereof nor of the statements made herein Any action to be taken by the subscriber Should be based on hiS own Investlgahon and information Delalleld, Harvey Tabell Inc, as a corporation and Its officers or emptoyees, may now have, or may later take pOSitions or trades In respect to any seCUrities mentioned In thiS or ant future Issue, and such POSition may be different from anyvle…'s nowor heleafter expressed In thiS or any other Issue Delafield Harvey Tabell Inc, which IS registered With the SEC as arllnvestmerlt adVisor, may give adVice to ItS Irwestment adVisory and othe' customers Independently of arly statements made In thiS or In any other Issue Further information on any security mentioned herein IS available on request

TABELL'S MARKET LETTER ,I ,j – – — I 600 ALEXANDER ROAD, PRINCETON, NEW JERSEY 08540 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS,INC (609) 9872300 October 31. 1986 ,– The .';eek'Siiiii'rket-strength has 'brought Tfie Dow to the' vicinity' orth i8'1W'iliHial 7' 0'-,….,.-,.,,,.,.1– upside objective suggested in this letter. The next step could be a full-scale test of the all-time highs. the success of which we would be inclined to doubt. All this. however. is seasonally fortuitous, since, as we discovered by accident some five years ago, the month of November, for some unfathomable reason, appears to have predictive value. Action for the month of November itself has been almost precisely normal. In the 89 years since 1897. the Dow has been up 54 times in November and down 35. showing a rise some 61 of the time. This is close to the 57 rising average shown by all one-month periods since the Dow was first constructed. What is interesting. however. is what has happened following the 54 past instances of an upward November. The following table summarizes some pertinent figures. Perlod Length In MOYlths ————1 2 3 4 5 -6 7, 8 '3 10 11 12 ALL PERIODS FOLLOWING UP NOVEMBER Avg l Avg l Petl.ds Pet'lods l Pet'l..ds Pet'lods l Ch All Chg Fr;.lv'oIlng Up De.wYl Up Up Down Up Pet'lc,ds Up NClvembt' ——- ——- —– ——- ——- —- ——- ———- 610 466 56.7 37 17 6'3 0.53 0.'30 613 462 57.0 33 21 61 1. 10 2.22 627 447 58.4 3' 20 63 1.67 2.04 636 437 5'3.3 36 18 67 2.23 3.75 658 414 61. 4 38 16 70 2.81 5.02 647 555 654 424 — ,1.1.5 415 60.4 51 , 61 -2- 35 -0- 39 1'3 . 2-P 15 65 3.41 53 — .3. '3'3 .. 72 4.56 4.47 4. 84 5.70 6'2 426 50.1 38 16 70 5. 16 8.72 548 41'3 60.7 38 15 70 5.77 7.5'3 646 420 50.6 34 1'3 54 6.38 7. 18 656 40'3 51. 5 34 1'3 54 6.'37 8.65 The table shows the history of all market periods of one to twelve months in length since 1897 and compares it with the 54 periods of like length following an upward November. Taking the first line as an example. of the 1076 one-month periods since 1897. the Dow was up in 610 cases and down in 466. thus showing a rise of 56.7 of the time. In the 54 Decembers following an upward November. however. the average found itself up 37 times and down only 17. thus rising 69 of the time. The average percentage change for all 1076 one-month periods was just over one half of 1. For the 54 periods following an up November. the average advance approached 1. The table may be read in the same way for all periods of lengths from two up to twelve months. — , A glance through the table will show that the predictive value of November appears to be quite uncanny. For all twelve period-lengths. the market produced a greater percentage of rising periods following an upward November than was the case overall. For example. it rose 70 or more of the time over periods of five. eight. nine or ten months compared with an expectation of around 60. Likewise. the average percentage change following an up November comfortably exceeded the average percentage change for all periods of similar length no matter what the length of the period in question. The average December-January chang.Jol1wing an upwardovember. for. example. ,was.2. 22 versus an exp..eced average of 1.10. Now none of the above says the market cannot go down after an upward November. and it has indeed done so on numerous occasions. Certainly there are large numbers of other factors detailed at length in recent letters which go into the formation of our present market opinion. Nonetheless, the November record is significant enough to be of interest. AWT It Dow-Jones Industrials (1200 p.m.) S & P 500 (1200 p.m.) Cumulative Index (10/30/86) 1871. 77 244.39 3158.25 ANTHONY W. T ABELL DELAFIELD. HARVEY. TABELL INC. No statement or epresslon 01 opmlon or any Olller matter herem contained IS or IS to be deemed to be directly Of Inchrectly an offer or the solicitation 01 an oller to buy or sell any secunly relerred tOOt mentioned The mailer IS presented merely lor the convenience of the subSCriber White we believe Ihe sources of our mlormatlonto be reliable, we In no way represent or guarantee the accuracy thereof nor of the statements made herem Any acHon to be taken by the subscnber should be based on hiS own Investigation and Inlormallon Delafield, Harvey, Tabell Inc, as a corporallon and Its officers or employees, may now have, or may later take, POSitions or trades In respect to any secuntles mentIOned In Ihls or any future Issue, and such POSition may be different from an/views now or hereafter epressed m thiS or any other Issue Delafletd, Harvey, Tabe!l Inc, which IS registered With the SEC as an Investment adVisor, may give advIce to ItS Investment adVISOry and othlY cuslomers Independenlly 01 any statements made m thiS or In any other Issue Further mformatlon on any security mentioned herein 15 available on reQuest

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 – November 7, 1986 1.Ucal)noJ.!.!k,g!lins!ljd!ha!ther!L..ha,,takelk-PJace.-somgimprovementnmar..ketactionovel'e-,,,I the'past fortnigh,t . .The Dow, it will be recalled, reached-its latest closing low'on . September 29th at 755.20, in line with historical expectations of a weak September. It firmed during the early part of October and, over the past couple of weeks, has moved ahead sharply, reaching, so far, a closing high of 1899.04 on Wednesday. The market has accomplished all this, moreover, on improving breadth and volume. Since October 21st, there have been only two trading days when declining stocks exceeded rising ones. Moreover, most advancing days have been accompanied by sharply increased volume. On October 30th, for example, along with a 26-point upmove, trading reached the 194-million-share level. For all of this, though, we are unable to detect sufficient improvement to suggest a revised portfolio strategy. Despite recent strength, market action still fits within the same dreary pattern that has prevailed since late March. To review it once more, this pattern has consisted of highs for the Dow at 1821 on March 27th, 1855 on April 21st, 1909 on July 2nd and 1919 on September 4th. Despite the fact that each one of these upthrusts constituted a modest new peak, they all produced the same aftermath, a decline to the mid–1750's. Given this history, it would be hardly surprising if the current move produced another new DJIA peak by a small amount. It is difficult, however, to read more optimistic projections at this time. We recently updated a study which we have been carrying out from time to time since it first appeared in this space in early July. Basically, that study consists of examinirig the price action of 1300 NYSE-listed issues and tabulating the date on which each stock made its high for the period March to date, the amount by which it subsequently declined and the percentage of that decline afterward recovered. The results this time around, using prices through Tuesday's close, tended to be similar to past versions wltic.LhaY..e.-.shownanL..– I ever narrowing upside leadership – For example, despite the average's latest upthrust to the vicinity of new peaks, only 180 of 1301 issues attained their highs during the October-November period. 440 stocks, a third of the issues under study, scored their highs back in March and April and have not achieved new peaks since. These 440 issues have declined, on average, some 37. By and large, moreover, they have achieved little in the way of recovery. The average percentage of lost ground regained is ahout n percent, anl the bulk of the issues in question have retraced less than half of their downswin gs. It is interesting to note iust what sort of leadership characterized the recent new peaks for the averages. Current leadership has been somewhat of a mixed hag, with the only identifiable industrial group showing above-average strength in recent days being PaperlForest products. Earlier, the end of October saw strength in Airlines, accounting for the above-average performance of the Transportation Average Rnd some financial issues, particularly Brokerage Houses anl Savings and Loans. The previous peak, in early September, saw the zenith for Energy issues, with most of the major international oils making highs early that month. What is important to note about these stocks' action since that time, we think, is that, although by and large they have not attained new peaks, they have been able to recover a major portion of the ground lost, in most cases 50-80. Going back still further, the July peak, at which 397 of our 101 issues made their highs, constituted, so far at least, the last hurrah for the disinflation-hedge stocks which had been market leaders for two years. Action of these issues since that time has been interesting. Most of the Food, Drug and Tobacco issues, as examples, moved lower by some -20-follo-wini(tneir-Julypeak-;- arid their technical patterns-show sorii'eevidencethatre'basing – – is taking place. In most cases, however, these bases, which have had only a short time to form, indicate nothing more than a test of the July highs. If this test, for consumer-products companies, is unsuccessful, it will, we think, mark the ultimate abdication of leadership by these stocks. On the other hand, penetration of September highs by energy stocks would suggest a new maior upside leg for this important segment. ANTHONY W. TABELL AWTlt DELAFIELD, HARVEY, TABELL INC;. Dow Jones Industrial Average (1200 noon) S & P 500 (1200 noon) Cumulative Index (1116/86) 1ROO.48 24.5 3211.64 No statement or epreSSlon 01 opinion or any othor mal1er herem conlatned 15, or IS \0 be deemed to be dlreclly or indirectly, an offer or the soliCitation of an o!for to buy or sell any security referred toar mentIOned The mailer IS presented melcly for the con,enlence 01 the subSCriber While we believe the sources 01 our mfarmaiion 10 be reliable we In no way represent or guaranteo Ihe accuracy \he1801 nOf 01 1M statements made heH,ln (.'01'1 aC\on 10 be \a1nlrl b'l 1M subscnber should be based on hiS o'l(n mvesllga\lm and InlormallOn Delafield, Harvey, Tabell Inc, as a corporal Ion and lis ollicers Of employees, may now have or may laler lake, positions or Hades In respect to any secunlles menlloned In lhlS Of any luture Issue, and such pOSition may be dlflerent from any vu.'ws now or helealler expressed In Ihls or anyolher Issue Delafield Harvey labell Inc which IS registered With lhe SECas an Investment adVisor, may give adVice to Its Investment adVISOry and othe' cusl0mers Independenlly 01 any stalements made In Ihls or In any other Issue Further fnformaUon on any secunty mentioned herein IS available on reQuesl

— -.——.—— …. -, TABELL'S MARKET LETTER i I i ! — ,i – 600 ALEXANDER ROAD, PRINCETON, NEW JERSEY 08540 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (609) 987-2300 November 14, 1986 We have regularly commented in this space on what seems to us the amazing amount of – effortdevotedby-thefinancia.communi-tyto.fl'ecasHngo,the,outlook-for-the-economywith-the— . intent to say something meaningful about the stock market. We' say 'we'are amazed' at this effort sinc there exists abundant evidence to suggest that it is essentially futile. The unspoken assumption behind much of Wall Street's economic forecasting is that changes in the economy are a major cause of changes in share prices. If this were the case, trends in economic activity would lead changes in stock-market indices, whereas the true relationship is exactly the other way around. Indeed, the Standard and Poor's 500 is used by the National Bu'reau of Economic Research as a component of its index of leading economic indicators. The thrust of this letter, then, will be an attempt to reverse the usual process. We will try to review the stock market scenario as it has unfolded over the past few months, give our interpretation of that scenario and try to ascertain whether there -is implicit therein an economic forecast. The essential elements of the market outlook at this point can, we think, be divided into two parts. The first part is the outlook for the market as a whole, which, our readers are aware, we see as ranging from neutral to bearish. The second part is a shift in relative price action, irrespective of the general market direction, away from the leadership of the past two years and in the direction of cyclical, capital-goods, manufacturing companies. -The less-than-sanguine overall market outlook is based, in our view, on the trading range which has contained the popular market indices since March. The best-case interpretation of this trading range is as a loss of momentum which is likely to remain in effect for some time, The worst-case interpretation of the range, of course, is as a major-cycle top. If it is true that the market leads the economy, this sort of action would seem, at first glance, to be suggesting some sort of economic slowdown. However, let us 1–I—–rrecaU ,-the-change.-in-s1ockmal'kelbehavjor d. tes-back…to-,earLy–SptinK….JLliLq.uitp-possible -J that this weakness was, in fact, leading the slowed rate of economic growth which emerged in the most recent quarter. Moreover, when we look at the apparent shift in stock-market leadership, an interesting story emerges. Among those groups showing recently improved relative action, are such industries as aluminium, automobiles, chemicals, coppers, forest products, oil, paper and steel. Indeed, the best technical action at the moment is being shown almost uniformly by the most cyclical of market sectors, the basic industries of smokestack America. These industries, moreover, appear to be wresting leadership from the disinflation-hedge, interest-sensitive areas. If our interpretation is the correct one, the stock market is, then, telling a rather interesting story. It is suggesting, first of all, the likelihood of an economic expansion a good deal more vigorous then conventional wisdom would have tiS believe. How else to explain the improving price action of cyclical stocks in the face of essentially disappointing recent earnings It is, furthermore, suggesting that that expansion may well be strong enough to exert an upward pressure on interest rates. Thus, the recent weakness in interest-sensitive stocks and the apparent loss of momentum in the bond market which is, like the equity market, close to its high, but essentially at the same general level as last Spring. What the market also seems to be anticipating is, if not the resumption of mild inflation, at least the temporary cessation of deflationary pressures which have accompanied the bull market since 1984. This would appear to be confirmed by the essential flattening of the downtrend in most commodity prices over the past few months. Vigorous ,expansion, higher interest rates, and.modestly renewedinflation.,in,other words, seem to be implicit in the story being told by recent stock price action. It would be interesting to see if, in this case, the stock market proves as accurate an economic forecaster as it has been in the past. ANTHONY W. TAB ELL AWTcg DELAFIELD, HARVEY, TABELL INC. Dow Jones Industrial Average (12 00 Noon) 1867.27 S & P 500 (12 00 Noon) 243.37 Cumulative Index (11113/86) 3196.52 NO statement or expression of opinion or any other maHer herein contamed 15. or IS 10 be deemed to be dlreClty or Indirectly, an offer or the soliCitation of an offer to buyor sell any security referred to or mentioned The maum IS presented merely forthe convenience 01 the subSCriber While we belieyethe sourcesot our information to be reliable we In no way represent or guarantee the accuracy thereof nor oi the statements made herein Any action to be taken by lhe subscnber should be base! on hiS own Invest!gallon and information Delafield, Harvey, Tabell Inc, as a corporation and Its otllcers or employees, may now haye, or may later take POSitions or trades In respect to any securities menlloned In thiS or any luture ISSue, and such POSition may be dlflerent from any Ylews now or herealler expressed In thiS or any other Issue Delafield, Harvey Tabell Inc, which is registered With the SEC as an Inyestment adYlsor, may glye adYlce to Its Investment adVisory and othe' customers Independenlly of any statements made In thiS or In ;Iny other Issue Further Inlormal/on on any security mentioned herem IS ayallable on request

T (BHELL'S r.lJiIR n ( l E T LIETTIER 600 ALEXANDER ROAD, PRINCETON, NEW JERSEY 08540 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (609) 9872300 November 21, 1986 – , —–J t-ism ..rkets-like,thisthatmak.l! .oneglad-(hbe .a..technician…,-,…,–,..,., Our non-technically-oriented colleagues we're forced this week, into' authorship'-of' portentous comments on the true, hidden, inner meaning of l'affaire Boesky. We will undoubtedly express our own thoughts thereon at some stage. Meanwhile, all we are required to do is talk about what the market did. Which, really, was not very much. On Friday, before the Boesky news broke, the Dow closed at 1873.59, off slightly from a high of 1899.04 ten days earlier. It dropped only a modest 13 points on Monday and was down by only a couple of points more at 11 o'clock Tuesday morning. The deluge then ensued. The day's trading wound up posting a 43-point decline on volume of over 185 million shares. However, prices firmed on Wednesday, and a sharp rally on Thursday regained almost all of the ground lost. The Tuesday debacle caused all manner of comment, some of that comment calling it the fourth greatest decline in history. Actually, it was not even the fourth worst decline this year. In true percentage terms (2.33), the Tuesday drop had been exceeded 69 times in the post-war period and 358 times since 1926. There was, we think, enough headline material last week without overrating what was not a particularly unusual phenomenon. All this took place within the context of the trading range, which, we are forced to remind our readers once more, constitutes, in our view, the one truly significant feature of 1986 market activity so far. The early November high, just under 1900, was the fifth identifiable high that has occurred. The entire drop, actually the smallest one this year, simply brought the average back to the lower part of that range. The ultimate breakout from this trading range, something that was not close to occuring this week, will, we think, be I.–,the major facJor in determining the direction,o! the market for 1987. Within this limited context there were'both bullish and bearish' features. IroniCalI.-yC,—–1 one of the more bullish was the huge amount of downside volume, almost 92 of the total, on Tuesday's break. Such volume has in the past, on not a few occasions, indicated the sort of climax normally associated with long-intermediate-term bottoms. Since downside volume is a component of the short-term trading index, this figure reached 4.09 on Tuesday, the fourth highest level it has attained in over 20 years. One-day levels this high have, indeed, in the past been associated with important lows, although, it must be noted, with some lead time. On a subjective basis, moreover, there is, we think, some optimism to be derived from the market's reaction to what has to be termed a media event. Basically, with the single exception of Tuesday afternoon, the market seems to us to have aquitted itself fairly well in the face of an avalanche of bearish news. There was, however, little of a climactic nature to be seen in either breadth or volume indicators. The familiar 10-day advance-decline oscillator had reached -3000 by Wednesday's close, whereas a level well under -5000 would be required to identify a normal short-term oversold condition. Poor breadth action has caused most breadth indices to pull back to a test of their September lows and yet further away from the new highs which would constitute a bullish confirmation. Total volume on Tuesday was only 1.26 times its 25-day moving average and would have to reach 1.5 times that figure before it could be construed bullishly. After all the fuss and feathers then, we are left with a market that, technically, is behaving just about the same as it has been doing all year, confining itself to a narrow trading range with ongoing signs of underlying deterioration. Future market action may require modifying this analysis, but no such modification was called for by what happened this'week;–' – – – ' , – ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL INC. AWTmmr Dow Jones Industrial Average S & P 500 Cumulative Inde (11/20/86) 1871.48 242.92 3155.79 NO statement or c(presslon Of opiniOn or any other mailer herem contamed IS, or IS to be deemed to be, directly or indirectly, an oller or the soliCitation at an offer to buyer sell any secunly reterred IOOf mentioned The matter IS presented merely lor the Convenience 01 the subSCriber While we beheve the sources of our information to be reliable we In no way represent or guarantee the accuracy lhereol nor of the statements made herein Any action to be taken bv the subSCriber Should be based on hiS own Investigation and Information Delafield, Harvey, Tabell Inc, as a corporation and Its officers or employees, may nOw have or may laler take, positions or !rades In respect to any securities men!loned In thiS or any fu!ure Issue, and such pOSl\lon may be dillerenl from any views now or herealler expressed In thiS or any o!her Issue Delafield Harvey Tabell Inc whlch.S registered With the SEC as an investment adVisor, mayglVc adVice 10 Its Investment adVISOry and olhe' customers Independently 01 any statemen,ls made In thiS or In anj other Issue Furlher mformallon on any security mentioned herein rs available on request

TABELL'S MARKET LETTER 600 ALEXANDER ROAD. PRINCETON. NEW JERSEY 06540 MEMBER NEW YORK STOCK EXCHANGE. INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS. INC (609) 987-2300 November 28, 1986 –'-W-nbted-Iastl\re-ek-rhat–tt -waB-possible;oead–some'fairlypositive-impHeations-rf-()!–the… marketfrom its response to the breaking of the Boesky scandal over the previous weekend After it had broken sharply on November 18th, the market firmed and ended the week on a strong upside note. the feature of which was a 33-pOlnt rise last Friday with better than 200 million shares changing hands. The fact that this sort of action can be interpreted positively draws upon the hypothesis that the market's response to news is often more important than the news itself. In the tone of much of the reportage on the Boesky case a week ago was the strong implication that the market, having reached its current level with the aid of such chicanery. should certainly come apart in the wake of the revelations being made. In other words, if the preconditions for a weaker market existed in the supply-demand picture two weeks ago. the insider-trading disclosures. not to mention the furor over the Iranian arms sale. gave it every excuse to move lower. Instead, the news was shrugged off, and the market approached new highS. We also noted last week, though, that it became necessary to move away from subiective interpretation of the market strength and to try to quantify that strength. It is at this point that one runs into trouble. For example, at Tuesday's close, within 7 DJIA-points of an all-bme high. just 22 NYSE-listed common issues were able to post new 52-week peaks. This list consisted largely of blue chips plus a few takeover issues. The commonly-heard analysis of last week's market was that it was a flight into quality. This analysis is probably correct. but the historical 'implications fire hardly bullish. Such a flight normally tends to take place somewhere near the tail end of a market upswing, when investors feel pressured to invest in equities but are unwilling to assume the risk perceived to eXIst in vp-nturmg into secondary stocks. During the entlre Mse. it was the Dow, consisting as it does of thirty blue-chip issues. which outperformed almost every alternative market measure. Indeed, the broader the Index chosen for measurement, the worse the market's behavior looked. The table below shows the high and low —-oof-thea-dingrarrgh-has-cxist-ed…sinee-Ma-reh fer fou-I–rep-resen-tative-indicB.tor-s–.- he-thir.d ….. – – column shows the Tuesday close. and the final column indicates the ratio of that closing price's distance from the low to the entire range. This measurement. obviously, can range from zero for an index close to its low, to 100 for one selling at its high. DJIA S & P 500 Value Line Breadth HIGH 1919.71 (9/4) 253.83 (9/4) 246.79 (5/30) 1005.78 (4/21) LOW 1735.51 (4/7) 228.63 (4/7) 218.79 (9/16) 978.91 (9/29) 11/25 CLOSE 1912.12 248.17 230.25 986.62 RECOVERY 96.04 77.54 40.93 28.69 The figures. of course, suggest how narrow the recent advance has been. The Dow. as noted. was selling almost at its all-time high. The broader, but shll blue-chip-dominated S & P 500, however, was barely in the upper quartile of its April-September range. The Value Line Composite, s broad and unweighted index, had recovered just 41 of the ground lost, and our daily breadth index had shown hardly any recovery at all. It is also worth noting that the latter two indices moved to new lows in September, whereas the popular averages posted their six-month lows back in April. We also tried to ascertain this week how much recovery han occured in a universe of 1'300 NYSE-listed issues. On average. the stocks in this group were selling below the midpoint between their recent highs and lows, unhke the averages. which were selling in the upper part of a similar range. The median recovery for these stocks was also in the area of 50. further suggesting that the latest advance has been led by an ever-decreasing number of issues. All of this, moreover. does nothing more than lend suhstance to what becomes an obvious conclusion from the inspectlon of individual chart patterns. SIgnifIcant numbers of individual issues remain in -ongoing downtrends with'slmost no recovery posted on the current -rally. Others appear to have patterns which suggest nothing more than a test of previous highs. Only a few stocks, notably in cyclical industries. where improved relative action is fairly recent. show contmued positive patterns. It is not meant here to suggest that. with the momentum shown over the past two weeks, the averages cannot move on to new highs by a relatively small percentage. However. as our readers are aware. thIS letter has been less than optimistic about the market outlook based. In large part. on poor breadth action. This action has continued through the recent rally and would have to post improvement before we would be willing to forecast significantly higher levels. AWTmjs Dow Jones Industrials S & P 500 Cumulative Index (November 26, 1986) 1911.98 248.33 3181. 70 ANTHONY IV. TABELL DELAFIELD, HARVEY, TADELL INC. No statement or eYpresslon of opInion Of tiny other matter herem contamed is or IS to be deemed to be directly or mdlreclly, an oller or the soliCitation of an offer to buyor set! any secunty referred toor mentioned The mailer IS presented merely lor the convenience of thesubscnber White we be!1eve the sources of our information to be reliable we In no way represent or guarantee the accuracy thereof nor 01 the statements made herein Any action to be taken by the subscriber should be based on hiS own mvestlgatlon and information Delafield, Harvey, Tabell Inc, as a corporation and Its of/lcers or employees, may now have, or may later lake, positions or trades In respect to any secufltles mentioned In this or any future Issue, and such poslhon may be dltlerent from any Jews now or hereafter etpressed In thiS or any other Issue Delafield Harvey, Tabell Inc, which IS regIStered With the SECas an Investmenl adVisor, may give adVice to ItS Investment adVISory and othe' customers Independently of any statements made In thiS or In any other Issue Further Information on any secuflty mentioned herein IS available on roqucst

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

TABELL'S MARKET LETTER -.- . 600 ALEXANDER ROAD, PRINCETON, NEW JERSEY 08540 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (6091 9872300 December 12. 1986 We commented. in last week's issue. on the impressiveness of the December 2nd rally. -wJlkhRroducJ!.dJ.33.JloiniJ'ise.Jn….theD.ow. or-than.J..300ad,,ancing ,.stOjlks .and.230-million …… – – – tL– – – – – -rl' – ……— -. — sharesoLvoltime. ,Weisuggested; though. that. however impressive this 'performance it was still possible to place it within the context of the trading range that has characterized most of 1986 to date. This remains true a week later. We noted last week that the December 2nd rally constituted only the 11th instance subsequent to March 27 of a new high in the Dow's being scored. The 10. previous cases are worth reviewing. The first three such occasions took place in four days between April 16 and April 21. The first rally featured a 38-point advance and 130.5 advancing issues. The high was' 1855.90.. and some three weeks later the average had moved almost 10.0. points lower. There then followed three new highs over an eight-day period. May 29-June 6. the final high being 1885.90.. A three-week trading range then preceeded new peaks on three successive days ending July 2 at 190.9.03. Two days afterward came a 61-point drop. and an ultimate low at 1763.64 was attained on August 1. The Dow spent only one day in new high territory on September 4 before reacting to a 1755.20. low on September 29. The final new high at 1955.57. of course. occurred on December 7. This high. interestingly enough. has now been followed by seven trading days on which no new high has been made. The whole point of this exercise. of course. is to suggest that it is. at least. possible that this early-December high may be just another one in a series of short-lived peaks which are followed by declines back to within the trading range. This theory becomes even more plausible when it is noted that a goodly portion of the Dow's strength is accounted for by two issues that have emerged as takeover or restructuring candidates. Goodyear and – .- Owens Illinois. For what iHis worth. oHhl!–Sl!ptemtrer-pe-.theDec'E!lIfljer' had 2f1d- htihgeHse–wiOs\sluledslibaveeenoereermf oovnelyd from the Dow nf31r.1i9; – a n d at the time yesterday';;;s—I close would have been 190.3.81. Needless to say. in a market which has featured selectivity, individual stocks show a wide variety of patterns. A fair number remain in ongoing uptrends and a smaller. but not insignificant fraction, remain in uninterrupted downtrends. Many issues. in addition. find themselves in what appear to be major base or major top formations. The most prevalent pattern, however. especially among high-grade stocks. is similar to the example shown at right. which happens to be a point-and-figure chart of American Home Products, 9b drawn on a two-point-unit basis. It must first be noted that objectives higher than this year's 94 7/8 peak exist. The crucial question. however. is what sort of intermediate correction is currently plausible. At recent lows of around 72. the stock had just about reached the downside target of the 94-84 top. Thus. an important issue is the nature of the 72-80. trading range. If this is a base. a test of the previous highs in the mid -9o.'s is highly probable. Indeed. other issues with similar patterns have bases which suggest the attainment of new highs. On the other hand. a downside penetration of this range would produce a head-and-shoulders formation with disturbing implications. Another alternative would call for AHP simply to back off into the 7Q's andbroaden.the .pattern. further postponing .decisive ,resolutionto .the,dilemma .. Since this stock is a typical example of the most common pattern currently extant, it can be seen that, despite the one-day new high. some questions regarding the current market outlook can be raised. Our own preference is to await the resolution of these questions. AWTcg ANTHONY W. TABELL DELAFIELD. HARVEY. TAB ELL INC. Dow Jones Industrials (Noon) S & P 50.0. (Noon) Cumulative Index (December 11, 1986) 1915.63 247.72 3177.21 No slalement Of expression ot opinion or any other matter herem contained Is or IS to be deemed to be directly Of Indirectly an offer or the soliCitation of an offer to buy or sell any secunty referred 10 or mentioned The mailer IS presented merely for the convenience 01 the subSCriber White we believe the sources of our Information to be reliable, weln no way represent or guarantee the accuacy thereof nor of the statements made herein Any action to be taken by the subSCriber should be based on hiS own Inves\!gatlon and information Delafield, Harvey, Tabell Inc, as a corporation and ItS officers or employees may now have or may later take positions or trades In respeclto any securities mentioned In thiS or any future Issue, and such POSition may be dltlen!nt from any views nowor hOlea/ter erplessed In thiS or any other Issue Delatleld Harvey Tabel! Inc whrCh IS registered With the SEC as an Investment advisor, may give adVice to ItS ,vestment adVISOry and othe' customers Independently of any statements made In thiS or In any other Issue Further Information on any security mentioned herein Is available on request

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 19, 1986 , – – . ..Readers ofthislettere,.no,,dubwretha tits, subjectma-t-t-er,is-of-ten- dictatedby …,. force of habit.' ,The'end of each year, for instance, occasions the'publication of 'three ' letters. The first of these is a review of the year just passed, the next an attempt at a forecast for the year ahead, and the third is an updated exposition of our fascination with the phenomenon of the year-end rally. The time for the first of these efforts, a review of 1986, has now arrived. Where to begin 1986 will, we suppose, go down in history as the year of the insidertrading scandals, but this is a subject better treated by the social commentator than the market technician. More in the technician's province is the full-blown maturity, during 1986, of the triple witching hour. It is, however, as yet unclear, at least to us, just what the longer term significance of this new trading pattern may be. (Due to our noon presstime, we are unable to comment on the latest edition of this event.) However, neither of these two phenomena will, in our opinion, be recognized by historians as the salient feature of 1986. That feature, we believe, will be one that this letter has been harping on for most of the past six months. It is the slightly upward-tilted trading range which has characterized the last three quarters of the past year and Which, quite possibly, may be continuing. To review it once more, that trading range, in terms of the DJIA, began on March 27th, at 1821.72. It went on to produce modest new highs, posted on April 21st at 1855.90, July 2nd at 1909.03 and September 4th at 1919.71. The interval between each of these peaks saw a decline to the mid-1700s. Provisionally, at least, it is possible to include the last high, posted at 1955.57 on December 2nd, as part of this pattern since, so far at least, that high, like the others, has produced no follow-through. I I ..-,.,T–,,h,,esiua non of a 1986 forecast is the determination of what,–p,re.cisjlly,hasb,een,, going on for the past nine moii'ths. We became disturbed, as the-pattern unfolded during the year, by the prospect that the tradng range might be a distributional top. That concern was elicited by the fact that leadership seemed to be narrowing as the year wore on. While the Dow and the S &p 500 found themselves early this month in new high ground, broader indica tors, such as the Value Line and market breadth remained closer to their lows than to their highs. Until this action improves, the possibility of a broadening top formation will continue as a cloud on the horizon. An alternative interpretation is, of course, that we are witnessing a consolidation phase in preparation for a new bull leg. This interpretation gains some credence from the fact that an important leadership shift, from consumer non-durables to the energy and industrial sectors, appears to be taking place. Such rotation is characteristic of sideways corrective processes. It is not possible to complete a review of 1986 without glancing once more at the traditional four-year cycle. It is now 52 months since the market made its last major low in August, 1982. Such cycles are, of course, measured from low to low and, with a single exception, have not exceeded 55 months in length. If the market is going to conform to this pattern, an identifiable pullback will have to occur fairly soon. We have noted in the past that it is possible to avoid this particular worry by acceptance of the hypothesis that the 15 decline between November, 1983 and July, 1984 constituted a full-scale correction and that a brand-new cycle began 2 1/2 years ago. This is, of course, plausable but, we think, somewhat less than likely. Unfortunately, the emergence at this stage of another major upward leg after a consolidation no more severe than that of 1983-1984 would have an only one historical parallel, a similarity which has been another favorite subject of this letter over the past year. That similarity would, of course, be to the market of the 1920's. It is against this rather fascinating background that we will attempt, next week, to produce a forecast of 1987 market action. AWTjt Dow Jones Industrials 1918.45 S 8. P 500 246.99 Cumulative Index 02118/86) 3145.49 ANTHONY W. TAB ELL DELAFIELD, HARVEY, TABELL INC. NO statement or expresSion of opInion or any other maller herem contained IS or IS 10 be deemed 10 be directly or Indirectly. an offer or the soliCitation 01 an oller to buy Of sell any secunty referred 10 or mentioned The maHer IS presented merely for the convenience 01 the subSCriber While we beheve the sources of our Inforrnalton to be reliable, weln no way represent or luarantee the accuracy thereof nor 01 the statements made herem Any action to be laKen by the subscrtber should be based on hiS Ollln Investigation and Information Delafield, Harvey, Tabell Inc, as a corporation and liS o1!lcers or employees, may now have, or may later take, POSitions or trades In respect to any securities mentioned In thiS or any future Issue, and such pOSltlon may be dlfterentlrom any views now or herealtcr eplCssed In thIS or any other Issue Oelafleld Harvey Tabell Inc which IS registered With the SECas an Investment adVisor, may lIVe adVice to lis Inveslment advlsorv and olhe' customers Independently of any statemenls made In thiS or In any other Issue Further mlormatlon on any securtty mentioned herein IS available on request f