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 May 22. 1987 1–..,,, S.OIlJc4tY,—–prhpe n.sjdr it 0Eei –,,-a2'etirement project—someone is going to write 'a.. book with-'8 'titleon ,the order-of -The-Language-of'WaIl sfFeett;–OMofmemOre 'CliBr!!ling—– characteristics of the financial industry has always been its passion for coining original words or phrases to refer to its own activitIes. This practice antedates, by many years, the emergence of a securities market in the United States4 Consider, for example, the origin of those most familar of Wall Street terms, Bunn and Bear1l. The Oxford English Dictionary notes that the latter term, at least, was common at the time of the South Sea Bubble. It goes on to say, tiThe term 'bearskin jobber' then applied to the dealer now called the 'bear', makes it probable that the original phrase was 'sell the bearskin', and that it origniated In the well-known proverb 'To sell the bear's skin before one has caught the bear'. The OED is less specific on the emergence of the opposite term. but it is, at least, a reasonable guess that It derives from the then-current practice of pitting the two animals together in a fight, thus creating an obivous antonym for the figurative bear. More than a few financial terms go back that far. The term bankrupt, for example, derives from the fact that Venetian money changers occupied benches around a central square, and it was customary, when such a dealer became insolvent, to break his bench. Banca Rotta, the Italian for broken bench, was ultimately incorporated into English as bankrupt. Many financial terms in common use today originated in the early part of this century. Apparently, the mysterious phrase the interests, or the equally mysterious they, came into being during that period when they were busy manipulating stock prices. More colorful terms also became common. Pulling the plug referred to what took place after market manipulators had finally distributed the last least of their holdings in a given stock. Equally colorful was the term bucket shop, used to describe a broker-dealer whose practice it was to accept customer orders for securities but not to execute them. A fascinating sidelight to this practice was that many bucket-shop operators, who were effectively betting against their customers, were, in fact, quite successful. This was probably an early manlfestation of the principle that the small, 1——'–nansoph1sticated;rrvestor-was-likely-to-lose Lmoney.Ortechnioians–thisled ,…toihe….tabula.tiofta-.n! I interpretation of odd-lot statistics and a whole host of other indicators which later emerged under the general classification of sentiment indicators. The common belief behind all such indicators is that there exist classes of market participants who tend to be wrong at major turning points. One such participant, we regret to report, apparently is the market-letter writer, since there exists a very successful indicator based on the opinions of these pundits, who tend, as a group, to be bullish coincidentally with market tops and to display maximum bearishness near important lows. Colorful terms have, of cours,e, continued to be coined right up to the present. Gunslinger came to be used in the 1960's to denote an aggressive portfolio manager. (The words aggressive and defensive as cliches to apply to money managers are also of fairly recent origin, arriving from the academic world, which has, of late, become an important contributor to financial jargon.) The current takeover boom has, of course, supplied its own colorful terminology. The stock of a company subject to a takeover is said to be put in play. The first reaction of its officers is generally to provide themselves with a golden parachute, and , if possible, forestall the takeover with a poison pill. If all of this fails, the company may seek out a white knight who is willing to make a higher bid and, not coincidentally, retain the current management. Many financial terms are, unfortunately, misuses of perfectly valid English words. Consider arbitragell , used to descnbe the practice of speculation on takeovers. For a short while, this practice was called II r isk arbitrage which is, of course, an oxymoron. The usage sanctified by the years for the word arbltrage has been to describe a riskless transaction which takes advantage of price differentials between two markets by the the simultaneous buying and selling of a security in the different locations, Thus the arbs, who now face problems a good deal more serious, can also be accused of corrupting a perfectly good word. Interestingly, a new phrase, program trading, has had to be coined to identify what is, properly, an arbitrage transaction. As noted above, academia has contributed a number of phrases, one of the most widely spread of which is beta. This, of course, is properly a mathematical term (such terms, for some reason, are often Greek) used in a process called regression analysis.- By this -time, the lay investor knows -011——- he needs to know about the term—that a high beta denotes a volatile stock and a low beta indicates one likely to be less risky. We once noted in this space that one of the more attractive characteristic of the English language is its richness. Our own industry, happily, makes its own small contribution to that richness by the new usages it has brought to the language. ANTHONY W. TABELL DELAFIELD. HARVEY. TABELL INC. AWTebh Dow Jones Industrials (1200) 2242.46 S P 500 (1200) 282.64 Cumulative Index (5/21/87) 3604.13 No statement or expression 01 Opinion Of any other maltel herein contained IS, or IS to be deemed to be directly or Indirectly an olter or the sollcltahon of an offer to buy or sell any security referred to or mentioned The mailer IS presented merely lor the convenience of the subscriber While we believe the sources 01 our Informalron to be reliable we In no way represent or guarantee the accuracy thereof nor of Ihe statements made herein Any action to be taken by the subSCriber should be based on hiS own Iflvestlgatlon and Information Delafield, Harvey Tabett Inc as a corporation and Its officers or employees may now have, or may laler lake, posilions or trades Ifl respect to any securities mentioned Ifl thiS or any future ISSue and such POSition may be different from any views now or hereafter expressed In thiS or any other Issue Delafield, Harvey Tabell Inc, which IS registered wllh the SECas an Investment adVisor, may give adVice lOllS Investmenl adVISOry and other customers Independently of any slatements made Ifl thiS or m any other Issue Further mlormalton on any secuflly menhoned 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 (609) 987-2300 – May 29, 1987 – – – –4.'-hose–ef-us… forwhom-, ,…..in-!'Our- youth,;military—-serv-ice-was–compulsory,–quickly learned.-that-C-t-he – armeo forCes-hiiCl'their own way ofdoing things. One such'praclice- was themefhod usecrto move troops from one place to another, fondly recsled as hurry up and wait. This procedure required a unit of troops to fall out on five minutes notice and march, often at double time, to some location where its members could hang around for some three or four hours. This was, of course, followed by another speedy formation and a quick-march to another location. The process could be, and often was, continued ad infinitum. The stock market seems. of late, to have begun to behave in accordance with the hurry-up-and-wait principle. Much of its time appears to be spent drifting idly around a given level until, at some point, an outside impetus, often programmed trading, moves it sharply in one direction or another. Once the outside force is dissipated, the market tends to resume its lackluster drift at some new price level. It can be argued that this sort of spastic motion is also being exhibited on a longer-term basis. Market dullness prevailed for the latter nine months of last year. This drift was both preceded and followed by sharp and dramatic upward moves. An important question being posed to the technician today concerns whether or not yet another period of drift has been initiated. A case can be made for this hypothesis. Some eight weeks have gone by without a new high's being posted, and, during those eight weekS, the Dow has etched out an identifiable trading range, between a low of around 2200 and a high of approximately 2350. The average's high of 2405.54 on April 6, was immediately followed by a drop of 150 points over a six-day span, reaching 2252.98 on April 14. A rebound to 2337.07 a week later was retraced by a 100-point fall to an April 27 closing low of 2230.54. The intra-day bottom on that day was 2180.54. Early this month, ending on May 6, a rise to a closing high of 2342.19 took place and was immediately followed by a drop to 2215.87 on May 20. As this is written, we are once again flirting with the 2300 level. —–norl1el'-toputall of'tlrislmospective,- itInay-lie lrelpfur't'eview-market action-since,–II- the historic low of 776.92 on August 12, 1982. We can, with the benefit of hindsight, trace out three rsllying phases which have brought us to the point at which we find ourselves today. The first such rslly continued through November 29, 1983 and brought the DJIA to 1287.20, a 65.68 advance. Breadth peaked five months before the market, in June, 1983, when secondary issues began their precipitous fsll. The entire advance took place over 329 trading days. The extent of the second advance, from July 1984 to mid-1986, was almost identical if measured to the high on March 27. It moved the average ahead by 67.66 over 423 trading days. The high for market breadth occurred in the early part of the subsequent trading range, on April 21. Finslly, we have the current advance. So far, it has not produced a rise anything like the two earlier ones. The market has risen only 27 since the end of the year and 37 if measured from the low of 1986. It has occupied only 66 trading days so far. We do have the possiblity of a breadth divergence with daily breadth having peaked on March 23, a week before the averages. It can certainly be contended that the advance should resume shortly with a breakthrough to new highs. The advance from year-end has covered nothing near the ground covered by the two previous rsllies and it has, so far, lasted only one-fifth as long. The totsl correction to date, 7.88 between April 6 and May 20, is no more serious than many similar corrections which occured within the context of the two prior uptrends. Another argument in favor of an ongoing upswing is the existence of a breadth high as recently as late March. Such highs, as we have recently noted, tend to precede highs in the averages by many months. If, however, a new high or. at least, an upside breakout above 2350 does not occur shortly, the possibility of a new, intermediate-term market phase would have to be explored. The first upswing in the present bull cycle was corrected by a farny severe decline in the averages (15). That decline was precipitous and, indeed, nowhere during its duration did a rally of more'than 5 take place. The 1984-1986 rally, by contrast, was corrected by only a trading range which, indeed, had a modest upward bias, with each consecutive peak being slightly higher than the previous one. So far, present action looks something like a repeat of that phase, and would begin to look more and more like it if the roughly-2200-to-2350 trading range continues for some period of time. The worst possible course of action at the moment would be a correction of 1983-1984 severity or worse. For reasons outlined above, this appears to be the least likely scenario. Were an immediate break below 2200 to occur, however, it would have to be regarded as at least a possibility. ANTHONY W. TAB ELL DELAFIELD, HARVEY, TABELL INC. AWTebh Dow Jones Industrials (12 00) 2317.20 S & P 500 (1200) 291.94 Cumulative Index (5/28/87) 3675.84 No statement or expresSion of Opinion or any other matter herein contained IS, or IS to be deemed to be directly or mdlrectly. an offer or the soliCitation 01 an offer 10 buyor sel! any secunty referred toor menlloned The malter IS presented merely for the convenience 01 the subSCriber While we believe the sources of our mformatlon to be reliable, we In no way represent or guarantee the accuracy thereof nor of the statements made herem Any action to be taken by the subscnber should be based on his own mvestlgatlon and Information Delafield, Harvey, Tabell Inc, as a corporation and Its officers Of cmployees, may now have, or may later take, posilions or trades In respect to any secuntles mentioned In this or any future Issue, and such position may be dl1lerent from any views now or hereafter c)(pressed In thiS or any other Issue Delafield, Harvey, Tabel! Inc, which IS registered With the SEC as an Investment adVisor, may give advice to Its Investment adVISOry and other cuSlomers 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 June 5, 1987 I-II- ThChl't elq)'-II!J!..l!cPl,-el!Ied. ill.tpJlLM1acLjl,lst amoI,-tLgQ.,1utt..h.,g..sg9.iflgdeve9.! of the market pattern since that date, we ttiink, makes it'worth 'displaying -again. When – . discussing the Dow a month ago, we noted that the 2200 level might again be tested. This, in fact, took place, and the lateral trading area between 2200 and, roughly, 2350 has now broadened enough to make the eventual breakout from this range significant—in whatever direction that breakout ultimately takes place. DDW JDNES INDUSTRIAL AVERAGE BREADTH While this sideways trading range was taking place in the Dow, the market's internal action was, unfortunately, not all that good. Our daily breadth index, the middle line on the chart, now has exhibited five successive lower peaks and a set of four lower lows. We noted earlier that we would not like to see the December low on breadth broken. Another minor downswing would, in all probability, accomplish this. The number of stocks acheiving new highs has also, during the past month, managed to turn in a less-than-impressive performance. The ten-day average dropped below zero in late April, and, after brief strength, has returned to that area again. On only one day since the trading range began have we seen more than 100 daily new highs, and the most recent downthrust, with the Dow only marginally below its all-time peak, produced, on May 20, 119 new 52-week lows. Now we have enumerated above what we believe are valid observations, but we feel constrained to point out that exactly the same objections could have been voiced regarding the period March-December, 1986. At that time, breadth posted six lower peaks before reaching a final low at 1986f s end, after which, of course, the market took off on its 500-point advance. Additionally, the ten-day difference of highs and lows moved below the zero line in 1986 on no less than four separate occasions. We are not suggesting here that, because manifest signs of deterioration were negated in January, 1987, we should ignore the emergence of similar portents as the averages, apparently, move into another trading range. We are noting, rather, that recent market behavior seems, at best, inconclusive. From a strategy point of view, we would rather admit this fact and keep our options open rather than allow ourselves to be pinned down to a forecast based on insufficent evidence. ANTHONY W. TABELL DELAFIELD, HARVEY, TAB ELL INC. AWTebh Dow Jones Industrials (1200) 2327.67 S & P 500 (1200) 293.52 Cumulative Index (6/4/87) 3725.27 No statement or expression of OpIniOn or any other matter herem contained IS, or IS 10 be deemed 10 be, directly or IndIrectly, an offer or the SollcllatlOf1 of an offer to buy or set! any security referred to or mentIoned The matter IS presented merely lor the convenience 01 the SUbSCriber While we believe the sources 01 our information to be rehable we In no way represent or guarantee the accuracy thereof nor 01 the statements made herein Any action to be taken by the subscnber should be based on hIS own investigation and Informallon Delafield, Harvey, Tabell tnc, as a corporation /lnd I\S officers or employees, may now have, or may later take, poSitions or trades m respect to any securities menlloned In thiS or any future Issue, and such position may be dlfferentlrom any views new or hereafter epressed In thiS Of any other Issue Delaheld, Harvey, Tabel! Inc, which IS registered With the SECas an Investment adVisor may give adVice to ItS Investment advIsory and other customers Independently of any statements made In thiS or In any other Issue FUrther information on any secuflty 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 June 12. 1987 , We focusedour attention lstw!lek on the trading range between, oughly, 2200 and 2350 whicliliaa;by -and rarge; 'cofltain-ed -the- Dow–since' its'1hltilil ftill–ff -from its' all-time- high — '—- – , of 2405.54 on April 6. This week's action once again underscored the importance of that trading range. Technically, a breakout from the range for most averages did occur at mid-day on Wednesday. However, immediately following that breakout, one of the last-hour gyrations which have cone to typify today's market took place, with a 50-point decline and a 20-point rally leaving the average just about unchanged only slightly above the 2350 level. Assuming the breakout is real, likely, in light of today's early strength, higher objectives for most averages are clearly readable although these objectives are not all that great in percentage terms. In the case of the Dow, upside targets center around the 2490-2540 range, and similar objectives exist for broad-based indicators, such as the S & P 500, S & P 400, and NYSE Composite. NO. OF AVERAGE EXTENT OF DECLINE nATE' OP' fllGH S'rdCKS fiECLINE I\) 10-20 20-30 30-40 4050 5'0 Before 5/19/86 168 46.1 0 1 17 52 44 54 5/19/86 – 7/31/86 159 40.4 1 1 46 48 21 42 8/1/86 – 9/28/86 107 29.9 0 5 68 22 57 9/29/86 – 12/30/86 46 30.7 10 6 19 15 42 12/31/86 – 4/26/87 501 21.7 16 215 207 49 86 4/27/87 – DATE 292 9.9 162 107 17 4 11 TOTAL 1273 25.6 179 335 374 190 83 112 Last wee.k's letter centered on the poor action of market breadth and the low nu'm'b'e'r-cof -I daily new highs which have characterizeo the recent sideways move. The tables located above and below, if the figures do not leave the reader totally numb, are worth wading through. since they examine the last 14 months in some depth and provide a little more encouragement than macro-indicators based on breadth and new highs. The first column of the table above shows the number of stocks posting new highs during four of the minor upswings of 1986 and for two periods during 1987. The second column shows the average decline for each group of stocks, to its subsequent low and the numbers of stocks which dropped by various amounts. We think it moderately encouraging that 793 stocks or just about two-thirds of the total, have posted new highs at some point during 1987. Indeed as the table's last line shows, 292 issues have actually out-performed the market. reaching new highs after the Dow had started to turn down. The subsequent decline for these issues is rather small and, for the bulk of them, weli under 30 percent. NO. OF AVERAGE EXT E NT OF RECOVERY DATE OF' HIGH STOCKS RECOVERY 20 20-40 4tl60 608\) 80-10\) Before 5/19/86 168 36.4 51 43 43 24 5/19/86 – 7/31/86 159 25.2 51 46 32 24 8/1/86 – 9/28/86 107 28.8 33 52 14 5 9/29/86 – 12/30/86 46 39.3 11 16 7 9 12/31/86 – 4/26/87 501 39.8 87 185 132 75 4/27/87 – DATE 292 39.6 74 81 66 52 TOTAL 1273 37.8 307 423 294 189 7 6 3 3 22 19 60 The above table focuses on the recovery following each stock's low which had taken place through Wedensday's close. t is hardly surprising that the extent of recovery for the stocks that peaked in 1987 has been substantial, since, as we noted above, these issues never declined by all that much. What is interesting is the above-average recovery shown by those stocks which peaked well over a year ago, before May, 1986. On the average, they have recovered 36.4 of their loss, and 44 of them have posted retracements greater than 40 of their declines. Persistence of this sort of trend would suggest a pattern of rotating leadership which might sustain the current bull market for some time. ANTHONY W. TAB ELL DELAFIELD, HARVEY, TABELL NC. AWTebh Dow Jones ndustrials 02 00) 2377.27 S & P 500 0200) 300.80 Cumulative Index (6/10/87) 3771.29 No statement or expression of opInion or any other matter herein contained IS or IS to be deemed to be, dlrectty or indirectly, an oHer or the soliCitation of an offer to buyor sell any security relelred to or mentioned The matter IS presented merely for the convenience of the subscriber While we oelleve the sources of our information to be reliable, we In no way represent or guarantee the accuracy thereof nor of the statements made herein Any action to be taken by the subscriber Should be based on hiS own investigation and Information Delafield, Harvey, Tabel! Inc, as a corporation and ItS olflcers or employees may now have, or may laler take, 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 Delafield, Harvey labell Inc, which IS registered With the SEC as an Investment adVisor, may gIVe advICe 10 ItS Investment adVISOry and other customers Independently of any statements made In thiS orin anyolher Issue Further Informallon 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 June 19, 1987 W.e-hye. .as our readers ar..e.-awrdevDted.a….fairamount,….of.!-stud.yover–theyears,….to-seasonal— patterns inthe stock market. In connection therewith, we have published, at around this time each year, the table below, which, for each of the twelve months, shows the number of times the market has advanced for each month, the number of declines, and the average percentage change. In all, 732 months, comprising the 61 years from 1926 to 1986 are included in the compilation. Ooebac1be,ad5 i1261286) IwoMaotbe,od5 L12612861 EcdbolJtb ad!.ldClCS DecltJes BeagelCbs edllaoces DeclDe!l. A!.lerasEkCbg …. Jan!.Jar Februar!d March AF'rll Ma June July AIJS1.Jst Sfptelliber October November lecember 39 31 31 34 30 32 37 39 23 33 38 44 22 1.06 30 -0.07 27 0.07 7 1.16 31 -0.75 29 0.91 4 1.57 22 1.62 38 -1. 39 28 -0.20 3 0.85 J 7 1 t 21 40 1 35 26 29 32 38 23 35 26 28 33 37 4 41 20 35 26 28 33 37 4 44 17 2.36 1. 00 -0.08 1 t !9 0.60 O. J 3 .44 3.33 0.19 -1.56 0.70 2.08 TOTL 414 318 0.50 47 305 1.04 As the table indiestes, of the 732 months since 1926, 414—or 57—have been advancing months, and – —month ';;'uld 318—or 43—have showed declines. be 34-35- advances and '26-27 declines. Thus the normal. expectation for 1anygiv,en Similar figures esn be adduced for two-month periods. From the data above, we have been able to extract four patterns of a seasonal nature which seem to be statistically signifiesnt, The most signifiesnt one is the least known, the tendency toward a market decline in the month of September. Since 57 of all months have been rising ones since 1926, the expectation would be a plurality of advances over declines. However, precisely the opposite is the esse for September, which, in 61 years, has produced 38 declines and only 23 advances, with an average drop of 1.39 percent. Interestingly, the tendency held true last year. The period between September 4, 1986 and September 29, 1986 produced an 8.57 decline, the largest fall since the present phase of the bull market began in 1984. The next most signifiesnt pattern has been the year-end rally, illustrated by 44 rising Decembers in 61 years. Our readers know that we have published an annual comment on this phenomenon around December or January of each year. Another seasonal manifestation which esn be statistically demonstrated, although we have no idea of the reason therefore, has been the fact that the direction in which the market mOVes in November has appeared to be a moderately successful predictor of the market's direction for the following year. Of the four seasonal phenomena, the least significant has been the summer rally, which is due to be analyzed at this juncture. As the table shows, the 37 advances and 24 declines for July are marginally better than one would expect. August shows an even greater abberation. The percentage advances for July and August, along with the two-month period ending in August, are easily the largest figures in the table. interestingly, seasonal behavior since the current bull market began has been somewhat at variance with past history. Four of the five Julys since 1982 have been down months. As the tendency toward a weaker July has emerged, the pattern of August strength has continued. The two most important bottoms in the current major advance have both occurred in mid-summer. in August 12, 1982 and July 24, 1984. However, summer, 1983 produced the top which led to the 15 1983-1984 decline, and. as noted above, the most important decline of last year, however small it may have been, began in early September. It thus appears that there has been a recent tendency for important turning points to occur during the summer months. As we enter the summer with the Dow just having posted a newall-time high, it will be interesting to see whether the traditional summer rally occurs, or the more recent pattern of a reversal's occurring during the Bummer, unfolds. ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL INC. AWTebh Dow Jones Industrials 0200) 2420.22 S & P 500 (1200) 306.05 Cumulative Index (6/18/87) 3822.44 NO sta1Cment or eJfprCS310n 01 opInion or any other matter herDln contalfHhllS 01 IS to be deemed to be directly or mdlrec1ly an offer or the soliCitation 01 an oller to buy or sell any secunty referred 1001 mentioned The matter IS presented mcmly lor the convenience of the subSCriber While we believe the sources of our mfOrmatlon lobe reliable we In no way represent or guarantee the accuracy thereol nO! 01 the statements made herein Any aCllon 10 be taen by the subSCriber Sllould be based on hiS own InvestigatIOn and InlOfmatlon Delalleld, Harvey Tabell Inc, as a corDO'allon and liS olhcers or employees may now have, or may later take poslhons or trades tn respect to any secuntles mentioned In thiS or any luture ISSUe, and such position may be dllfcronllfom any views now or he/ealter epH!ssed In thiS or any other Issue Delafield Harvey Tabel! Inc whiCh IS registered With the SEC as an Investment adVisor may give adlce to ItS mestment adVisory and othe' customers mdependently 01 any statements made In Ihls or III any other Issue Further Inlormatlon on any security mentioned herem IS aallabte 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 June 26, 1987 ..- ….. – r- -'— – — – — — It was L … M. Lowry. we believe. who first made the pronouncement. liThe market is always lowst at the low. It has always been one of our favorite quotes. Seemingly trite and obvious at first, it becomes. on a few moment's reflection, a reasonably profound truth. Bear markets. after all, consist of a series of new lows each one bringing further erosion of portfolio value. After a while, these lows become more frequent and, essentially, indistinguishable from one another. Yet one of them will prove. well after the fact, to have been the major low. the best buying opportunity of the entire cycle. The same principle in reverse applies to bull markets, which are, by definition, a repetitive series of new highs. This observation is prompted by the fact that the Dow posted a new closing peak yesterday at 2451.05. the 38th occasion of a new high's being recorded since the bull market began on January 2. It is possible. of course, that this was the market high. Whether or not this was the case, however, we have one of the rare opportunities afforded the analyst to make a pronouncement with total certainty. We can assert that. as of June 25. 1987. a major bull market remained in effect. How useful is this information If bull markets had a record of turning on a dime and beginning precipitous plunges, it would have little or no value. Such, however, is not the case. Most bear markets do not begin the accelerated phase of their decline until well after the actual high is made, and they often begin it from a point very close to the high. In other words, that high is often tested quite some time later. This can be documented by the table below. which shows the high date for the last 11 cycle bull markets. It then shows the last date following the bull market high on which the Dow traded within 2. 5, 7. and 10 of its peak. The figures in parentheses are the number of trading days between the high and the date shown. BULL MARKET RIGR LAS T D ATE W I T H I N A G I V E N OF HI G H 2 5 '1 10' May 29, 1946 Jun 15. 1948 Jan 5, 1953 Apr 6, 1956 Dec 13. 1961 Feb 9, 1966 Dec 3, 1968 Jan 11. 1973 Sep 21, 1976 Apr 27. 1981 Nov 29, 1983 Jun 17, 1946 (12) Nov 1. 1948 (101) Mar 25, 1953 (55) Jul 26, 1957 (328) Mar 19. 1962 (65) Feb 17, 1966 (6) May 16. 1969 (109) Jan 12. 1973 (1) Jan 3. 1977 (71) Jun 23. 1981 (40) Jan 19, 1984 (35) Aug 15, 1946 Nov 4. 1948 Apr 2. 1953 Aug 9. 1957 Apr 6. 1962 Apr 26. 1966 May 29. 1969 Jan 26. 1973 Mar 17. 1977 Jun 30. 1981 Jan 27. 1984 (54) Aug 23, 1946 (60) (103) Feb 3, 1949 (172) (66) Aug 18. 1953 (158) (338) Sep 3, 1957 (354) (79) Apr 25, 1962 (91) (52) May 2, 1966 (56) (128) Jun 9. 1969 (124) (10) Oct 29. 1973 (201) (123) Apr 18. 1977 (144) (45) Aug 6, 1981 (71) (41) Feb 2, 1984 (45) Aug 2'6, 1946 (61) May 19, 1949 (264) Sep 9, 1953 (173) Sep 19. 1957 (366) May 8, 1962 (100) Jun 24. 1966 (94) Jun 18. 1969 (131) Nov 1. 1973 (204) Jul 25, 1977 (211) Aug 20, 1981 (81) May 10, 1984 (113) The figures show that in, seven of the eleven bear markets. the Dow returned to within 2 of its high over periods ranging from two to fourteen months. In ten cases, it had returned to within 5 of that high over a similar period. and, in all cases shown. a recovery to within 7 of the bull market high ultimately took place. We have, of course, been commenting here on some of the negative aspects of market action including poor breadth, few new highs, and insipid volume. All of these phenomena, however, tend to lead highs in the averages by many months. In addition. the table suggests that. even after a hlgh is reached, a serious decline does not usually set in until much later. This affords the analyst time to observe market action before actually making the suggestion that a given bull market is probably over. ANTHONY W. TAB ELL DELAFIELD, HARVEY. TAB ELL INC. AWTebh Dow Jones Industrials (1200) 2443.88 S & P 500 (1200) 307.82 Cumulative Index (6/25/87) 3844.60 No statement or expresSion 01 opinion 01 any other mailer herein contained IS, or ls 10 be deemed 10 be, dlfeClly or mdlrectly an oller or the solicitation of an offer to buy or sell any security relerred loor m()nllOned The matter IS presented merely for the convenience of the subscriber While we believe the sources of our Information to be reliable we In no way represent arguarantee the accuracy thereof nor ellhe statements made herein Any sctlon \0 be taken by the subscriber should be based on hiS own Investigation and information Detafletd, Harvey, Tabell Inc, as a corporation and lis officers Of employees, may now have, or may later tae, positions or Irades In respect to any securities mentioned In thiS or any luture Issue and such POSition may be different Irom any views now or hereafter e)(pressed In thiS or any other Issue Delafield Harvey Tabe!l Inc which IS registered With the SEC as an Investment adVisor, may give advice to ItS Investment adVISOry and other customers Independently of any sfatemenls made In thiS or In any other Issue Further information on any secunty 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 (609) 987-2300 July 2. 1987 Despite the lackluster performance in the Dow Jones Industrml Average since posting a record hIgh percent88t weeJ;-!.ti,e DoW-iWliich -clolled-oub1986-ak1895.95, . h.sdded, 522-.,48-points.in-thefirst-half .of -,no'—f,, year—a 27.6 -gain. Ashlmpressive as these performance figures are, 'most recently the rIse' clearly has been due to a concentratIon of leadership in the high-grade, high capitalized equity sector. While this flight to quaUt y has fueled the recent advance in the Dow, some diverse market action has been taking place for some time in the NASDAQ aTC Industrial Average. Currently. tradmg 3.29 percent below Its thirteen week-old April 3 high of 465.20. a general review of the performance of the OT C stocks is an interesting and instructive exercise. The chart below presents an approximate five-year history of the DJIA and the NASDAQ Index. This is followed by a relative strength ratio. the NASDAQ Index dIvided by the DJIA and a OTC Breadth Index consisting of advancing lssues minus declinmg issues divided by total issues traded. 00 .!300 210) 1900 t700 I' SOD 1311' 4SO 400 1100 gIlD INDUSTRIRL RVERAGE 700 SOD 150 100 OTC INDU5TI;!IRL OJJR SO To briefly review these last five years, the NASDAQ Industrials has moved from 177.70 at the August. 1982 low to a high of 408.40 m June. 1983. a 129.83 percent advance as opposed to a 65.68 percent comparable rise in the DJIA. The OTC Average then corrected itself 38.76 percent in July. 1984 versus a correctIon over a similar time period of 15.59 percent in the Dow. Although very dramatic, both of these moves in the OTC Index are not surprising. for as we know a characteristic of the OTe Average has been its historical tendency to rise and fall more sharply than the Dow, i.e. a higher beta. A glance at the chart above confirms this normal market action until the July. 1984 low. Since that time, however, the continued strength in the OTC Index relative to the DJIA has been poor. It is true the OTC Index has risen 86.01 percent from the July. 1984 low but this compares with a 125.58 percent increase 10 the DJIA. What is equally concerning IS the behavior of OTC breadth. In April of this year. the OTC Index recorded a new high which was not confirmed by a new high in breadth. In fact, this dIvergence continues to be magnified. as breadth further deteriorates. while the OTC Index trades slightly below its old high. Although not shown on the above chart; it is important to note that NYSE breadth earlier this year confirmed new highs in the DJIA substantiating the continued bull market. Acknowledging that we are still in a mature. ongoing bull market should not prevent us from examining series such as those dIscussed above. It would be difficult for the market to continue to move ahead should OTC breadth continue to show weakness coupled with the OTC/DJIA ratio under-performing the Dow. Monitoring these series may give us a clue as to the ability of the general market to sustain its upward movement. ROBERT J. SIMPKINS. JR. DELAFIELD. HARVEY. TABELL RJSebh Dow Jones IdustrialS (1200) 2428.41 S & P 500 (1200) 304.78 Cumulative Index (7/1/87) 3816.22 No statement or eypreSSlon 01 opinion or any other matter hem.)ln contained IS or!s to be deemed to be directly Of indirectly, an offer or the solicitation of an offer to buy or self any secunty re!erred to or menltoned The matter IS presented merely for the convenience of the subscl1ber While we belreve the sources of our rnformallon to be reliable we In no way represent or guaramee the accuracy thereof nor of the statements made herein Any aCllon to be taken by 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 later take, posllions or trades In respect 10 any secUrities mentioned In thiS or any future Issue, and such position may be dlfferentlrom any Views now or hereaher expressed In thiS or any other Issue Oelafleld Harvey, Tabell fnc ,WhiCh IS r'lISlered With the SEC as an IIlvestment adVisor, may give advice 10 Its InYestment adVisory and other customers Independently of any statemenlS made In Ihls or In any other ISSue Furlher Information on any Secuflty mentioned herein IS available on fCQuest

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 July 10, 1987 The second half of what began, eVen by Wall Street standards, as an impressive year, continued as tll J!!.!!rJ'1Lm–!'Y!'d ahea!.JgaiiL!'!,CQr(nngJtewhighsin….theDow J onesl ndustriaLA verageon .Wednesday Lof -this week;-closingat-.a-recor-d 246f.97. – .- – – – — – As has been pointed out in this letter earlier in the year, this behavior is not uncharacteristic of recent, past market action. As 1986 ended, we had seen two earlier upside explosions emerge out of the blue, the first in August, 1982 and the second in July, 1984. The third case, it can be argued, started on September 29, 1986, following a 8.57 percent correction in the DJIA. It is possible to compare this recent market action to date against those two previous benchmarks. This, we attempt to do in the updated chart below which depicts the first 250 trading days of the two previous rallies along with the first 195 trading days in the current market. In order to facilitate the comparison, the 1982 and 1984 series have been adjusted so that their starting level is equivalent to the September 29, 1986 close of 1755.20. Below, the DJIA chart and the action of our daily breadth index in the three periods is depicted on a similar basis. – 'lASt q!l(, 12 198J(-G-) SASE JJU' 24 198,j(–1 SASE SE 29 19BGI- ) aw JONES lNDUSTRIQL AVERRGE 9REAOTH INDEX The most obvious generalization regarding the current market is that it falls just about halfway between 1982 and 1984 in terms of percentage advance. The two previous cases began with sharp upside explosions and then flattened, whereas the current market has produced a slow and steady rise in the Dow, so that by mid-February, it had advanced, on a comparitive basis, even more than in 1984. What differentiates 1982 from the two subsequent cases is the sharp second leg, which started in October of that year. This, as the chart shows, took the indicator the the equivalent of 2800 before it finally flattened and began moving sideways. It is the lateral movement in the second half of their lifespan which makes the two previous advances relevant from a forecasting point of view. If past experience is followed by the Dow, it could remain In a trading range centered around current levels through Labor Day. We can expect, therefore. a dimunition of action on the upside but on the other hand based on the past experience, there should occur little in the way of a significant correction. The only cloud on the horizon is the comparatively poor action of breadth for the most recent series. Clearly, this current weakness in breadth must improve in order to sustain the market advance. . It must be noted that before the two previous upswings had run their course, they each moved the DJIA up 65.68 percent in 329 trading days in 1982, and 76.68 percent in 534 trading days in 1984, versus 40.38 percent in 195 trading days currently to date. If this precedent is followed, the current upswing could carry the DJIA over the 3000 level some time in the first half of 1988. ROBERT J. SIMPKINS, JR. DELAFIELD, HARVEY, TABELL INC. RJSebh Dow Jones Industrials (1200) 2449.62 S & P 500 (1200) 307.28 Cumulative Index (7/9/87) 3886.12 No statement or e (presSion of opmlon or any other malter herein contameO IS, or IS 10 be deemed 10 be, directly or mdlreclty, an oller or the sollcilation at an otter to buyor sell any security reterred 1001 menlloned The mailer IS presenled merety forlhe convenience of Ihe subscriber While we betleve Ihe sources at our mformaHon to be rellabte wem no way represenl or guaranlee Ihe accuracy thereof nor 01 the statements made herem Any action to be taken bv the SUbscliber should be based on hiS own mvesllgallon and mformatlon Delafield, Harvey, Tabelt Inc as a Corporal Ion and lIs officers or employees may now have, or may later take pOSlllons or trades m res peel to any secunlles mentioned In Ihls Ot any future Issue, and such position may be d.llerenll/om any views now or helealter expressed mlhlS or any olher Issue Delafield Harvey labell Inc whiCh IS reglslered With the SECas an Investment advisor may give adVice 101\S mvestmenl adVisory and olher customers Independently 01 any statements made In thiS 01 In any olher Issue FUrther mlormallon on any secuflty mentIOned herein IS available on request

. , .- – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – — I 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) 9872300 – July 17, 1987 – .e–TheJ!,o)'l–! 01)es g.!Jr.t/l.1 N.era gpo'!t edy.eL.!i.gl!i,a!'w2ecordighh ur.sda,closin g-at—I..,,.. 2496.97 'up OVer 500 -pointsin six months and as of this' writing has broken the 2500-level. – As this market action continues positive, an examination of the current position of the stock market is instructive from a longer term perspective. Last week we inspected the start of this upswing, identified as November 29, 1986, and suggested, when compared to the two previous upswings, starting in August, 1982 and July, 1984, that there was still room on the upside for this current market given an improvement in breadth. The chart on the right shows the percentage swings of greater than 5 percent in the DJIA from September 29, 1986 to date, DATE DJIA CHANGE OF DAYS together with the length of each swing. As can be seen from the chart, the market rose 37.05 percent uninterrupted until April 4, 1987. Closer examination of the market since the April high to date, using the Standard & Poor's group indexes as a proxy shows an interesting, ongoing process, which gives us a clue for the continued 9/29/86 4/06/87 4/27/87 5/06/87 5/20/87 7/16/87 1755.20 2405.54 2230.54 2342.19 2215.87 2496.97 0.00 37.05 -7.27 5.01 -5.39 12.69 o 131 14 7 10 39 strength in the market. On the back page, these Standard & Poor's groups are ranked by percentage change, best to worst, for two periods, September 24, 1986 to April 8, 1987, and April 8, 1987 to July 15, 1987. Dividing the September, 1986/July, 1987 market into two separate periods demonstrates the continued rotational leadership from one period to the next period that has been taking place. What has happened to the consumer non-durables and interest-sensitive sectors of the market which lead the early advance of the upswing They have gradually been replaced by the cyclical sector of the market. Also, the worst-acting groups for the same period provide no real surprises – ,- –reflectin gthedemiseof1heinterestsensifiveectur;- '. WtrilL1s-imffi'Itrurr-ri1oWever,–.,…. is the performance of these Standard & Poor's groups from April 4, 1987 to present. RANK GROUP 04/08/87 to 07/15/87 PERCENTAGE CHANGE RANK GROUP 04/08/87 to 07/15/87 PERCENTAGE CHANGE 1 Offshore Drilling 48.0401 2 Aluminum 30.8699 3 Steel 27.9876 4 Steel (Excluding USX) 26.6124 5 Cosmetics 19.5619 6 Textile Products 18.5727 7 Gaming Companies 18.2734 8 Metals Miscellaneous 18.0240 9 Oil Well Equip and Ser 17.7577 10 Machine Tools 17.1330 86 Savings & Loan Companies -7.0405 87 Electronics (Defense) -8.8388 88 Building Materials -9.0596 89 Paper -9.5490 90 Transportation-Misc. -9.6886 91 Manufactured Housing -13.6755 92 Brokerage -14.6480 93 Forest Products -15.6135 94 Home Building -16.9276 95 Health Care-Misc. -22.5693 The list above shows the percentage change of the ten best and worst groups for this period. Strongly represented in the best groups include the offshore drilling, aluminum, and steel stocks. These groups continue to perform well but at a diminishing rate compared to the earlier period reviewed. The ten worst-performing groups show a concentration in building materials, paper, manufactured housing, forest products, and home bUilding. The short amount of time neces,sary forchanges. in ranking canbest be shown by the action of the forest products group, which went from seventh place (55.69) in the first time period to nintey-third (-15.61) in the current time period. As this letter has pointed out in the past, within the framework of this ongoing bull market, the process of rotational leadership from sector to sector and group to group has been able to continue to bring into focus new leadership in groups such as energy, natural resources, and transportation. The positive performance of these groups have made it possible for the market to continue to move ahead in spite of a number of other groups showing poor, relative strength. RJSebh ROBERT J. SIMPKINS, JR. DELAFIELD, HARVEY, TABELL INC. Dow Jones Industrials (1200 p.m.) 2512.75 S & P 500 (1200 p.m.) 313.49 Cumulative Index (7/16/87) 3950.99 No statement or eypreslon of opinion Of any other matter herem contalr'lCO IS or IS to be deemed to be, dlrec11y or mdlrectly. an oller or the SOliCitation of an oller 10 buy or sell any security referred toor mentioned The matter IS presented merely for the conyenlence of thesubscnber While we bellevelhe sources 01 our Inlormahon 10 be reliable, weln no way represent or guarantee the aCcuracy thereol nor 01 the statemonts made herem Any action to be taken by the subSCriber should be based on hiS own mvestlgatlon and Intormatlon Delafield, Harvey, Tabell Inc, as a corporation and Its offiCers or employees may now have or may lateltae, pOSitions 01 trades In respect to any securities mentioned In thiS 01 any future Issue, and such position may be dilierent from any views now or helealter expressed m thiS or any othellssue Delafield Harvey Tabell Inc which IS registered with the SECas an Inestment adVisor, may give adVice 10 Its mvestment adVISOry and othe' customers mdependently 01 any statements made In thiS or In any other Issue Further mformahonon any secunty menlloned herein IS available on reQuest RANK. (,.;oup 1 TIR'S r. JBE L OFF-SHORt; JRIllIN 3 CANADIAN JIL GAS ,4 tClUUING GeN. MorOKS EeCTRONIS()EMICONOUCTO tXClUIJING 1.8. 1 FlJRcSr PROUCrS , TXTILE POOUCTj , POlLUTIJN CONTROL 10 COMMUNICATION eUIP/MfR) ,11 C..JNTAINtR PAPR GAMIN COPANIES 13 GOl) h !)rtOS 1 ELECTRONIC MAJOR OS. 16 OIL WELL EQUIPMENT AHD SE 11 ReTAIL StCILTY 18 CHMICALS 19 a It' INTE 5RA TEO- OoJMc! TIC ZO COMPUTER SERVICES Zl AUTOMJall Z2 ENTRTAINENT Z3 PAPER Z' DkUI,, ZS TEXTILE APARl MFR. Z6 HEALTH CAE-M!)C Z1 CSMHICS za MANUFACTUEO nOUSINJ Z9 TRANSP.-MUC. 30 OIL CUMPOSITE 31 BROADCAST MOIA 3l CHEMICALS-DIV .. 33 PUaLISHIN (NWSPPEKS) 34 SOAPS 3 HEALTH CARE-DIVERSIFIED 3. bNERAl MRCHNOISE CHAINS 31 HAROWARE ;. TOOL S 38 BEVeRAGES DISTILLERS 39 HOUSftlOlO F (. A '0 lEISURE T1M, 41 Bc.VERAGC BREwES .2 OIL INTEGRAHO HHERNATlil 43 R2TAIL STORES COMPOSITE HOTel/MOT El '5 STEEL (XlUOING USX) ..'6 BLDG MATERIALS. 4T RETAIL STaRtS DEPARTMENT – 48 AUTO PARTS-OR;. EUIPMENT MeTALS MISCELLANEOUS 50 RESTAURANTS ElECTRDNICS-iNSTRMENTATIJ 52 RAILROAQS 53 CONTAINeR METAL t GLASS 5. FOGUS 55 SOFT ORIN,S 5. ELECTRICAL EQUIPMENT 51 MACrlINERY-OIVRIlEu MEDiCAl PRODUCTS SUPPllE 59 STEEL 60 s.&.p soo 61 NATURAL G4S 62 AUTO PART S-AFTfR ARKET .'63 TObACCO ALUMINUM 05 PUoLI5HIN; bb CUMPUTER; BUS. EJUIP. 67 CONLOMERTES 6B All FREl;iT 69 AUTa TRUCS (. PRTS 70 RETAIL ST)RcS(ORUG) 71 HCINE TJOlS 12 FOOD CHAI' 73 BROKERAGE FrRS 14 AROSPACEOEFcN5E 75 MISCELlANEOS(HIG TELH) .-'''''-''-' .–;—-'-'l.60..-….AIRT–'lANS.-O-Rr 11 &AVrNGS LOAN COPANlfS 1 HQM UILJING 7 HOSPITAL ANAEMENT CCMPAN 8 J C UAL 1 ELcCTRONIC5(OFNSE) 82. MULTI-liN INSURANC 83 rNVESTMNT COPANIE 84 PkOPlY-ASU4LITY INsuRAN e MAJuR RuIONAl dANKS &0 TRUCf\.5R.i 87 P2RCAL OdN a MONY CNTER jANS d9 HtAlTH LRc-CJMPG51TE 90 TELePHONE (IIIEW) Sl1 llFI iN)UUNCE 9, INVTMNr DS.SNJ fUNO '1j fLECTRIC OMPNIEi 4 RL eSTATe IVESTMNT TRU 9) TJj s.P 24 1916 AR 3 19jj7 TO AP 8 1a1 TJ JUL 15 1ij1 PtRCENTbf ECNTf C1Ajj(,t Cha.NI.1'. 1'.4tH9 8.1C9S 11 .. .518 10.31i)4 48.U'ul -4.012.1 6.1112 14.201.1 53.61J3 S5.J46 1.7213 5.844 ,.6912 -15.61J5 SO.513 4).4623 lS.S7Ll b.lJ3 41.5161 3.3lj 45.lU25 4'J.77'd7 43.471 4j …H65 3.1041 18.21'34 10 .. 369) 1.673 42.7544 1.21i1l 42.6293 11.7577 42.4358 3.94j 42.3454 3.l41S .4l.00lJ7 – – 7.-106-4 4).5601 -3.S11 4).3512 1.874-d 40 … 0251 10.4258 3.llj2 -9.54'3J 38.2283 6.5,1l0 31.45'J6 31.1522 5.1;13 -ZZ.5&93 36.9684 19.561 36.6423 -13.6155 3. 3ZuB -9.6d8'5 35.4359 8.5596 35.3558 35.3457 35.2637 12.8150 6.1ijl 5.4707 35.0504 6.456' 34.7541 -1.5414 34.4115 33.039 6.1714 9.1!45 33.15H Z.65a 32.8839 j2.5645 -5.1291 13.8u61 32.0691 -0.1111 31.0411 30.860Z 30.071 9.3130 b.915 -1.4440 30.06Sl 26.61l4 23.6356 -9.0596 23.5868 21.13;,5 5.8511 –10. 24-11t- 27.93),9 18.0240 Zl.n14 -3.1690 11.5389 ll.S193 9.1839 10.7004 Zl.3808 9.1105 21.25.B 3.05Z3 16.4li28 20.4634 2.9404 5.62.22 26.34b4 12.7414 Z6.0175 0.1513 Z5.846' 21.9816 25.8034 4.4211 2 … 992 O.7j37 lj.o941 3.3881 23.1100 Zl.3955 1.9001 lO.S69i Z2.1Z56 5.6,86 Z2.0105 21.2418 lJ.7547 10.8551 5.694'1 5.4d61 1J.5856 18.6114 10.6633 9.0192 11.9915 17.1330 14.9623 1.601 15.5521 -14.0480 13.8734 -2.9931 13.1564 14.9961 1-1. as.44…,. 13 .-7.1-83 ,..,,-,,-. —–..,.–I 11.0618 -1.0405 11.5462 -16.9216 11.3943 10.1939 8.8115 -2.29l1 9.19ao 7.5588 -8.83d8 -2.4.Hl 6.0235 1.00.3\) 5.34'11 -1.3d15 4.'31 2.Z243 1.821d -0.6,,36 J.d3J2 -3.0163 o.lU26 0.0000 1.7011 Z.31j -0.1l955 -Z.3j76 -I.4!i25 -1..4351 -3.5055 -4.110l -).10B8 -Z.4139 -).8296 -0.6757 -3 .,10 -0.101.!

,——————————————————————————————– TABELL'S MARKET LETTER 600 ALEXANDER ROAD, PRINCETON, NEW JERSEY 08540 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (60919872300 July 24, 1987 —..- — -T-hree-year.s-agG-toda-y,–J-ul.y- -24,-1984,-t-he -.Stock-….-ma.J!-ketembarked'-on-a-remarkable-advance-,- , that has taken'the Dow 'J ones I ndustrial Average from a low of 1086.57 to 'a record high of 2510.04 in 753 trading days. The unprecedented characteristIc of this 131.01 percent advance, the index has more than doubled in price without suffering at least a 10 percent correction during the period, is limited only by the sixty plus years of daily stock market history we have available in our computerized data base. In spite of the constructive performance of the DJIA, recent action of market breadth has been less than positive. The ,major problem facing the market technician is to determine whether this deteriorating breadth is the precursor to a correction in an ongoing bull market or is in fact the beginning of a top formation. The chart below depicts the market action of the Dow Jones Industrial Average from the January I, 1986 to date together with our daily breadth index, the middle line on the chart, and a ten-day average of new highs and new lows at the bottom of the chart. 10 oqr RVERAGE OF N-W HJ GHS-NEW LOWS Earlier this year, market breadth produced a bullish confirmation when, after reaching a new low on the last day of 1986, it recovered to a new bull market high. The DJIA corrected from its April, 1987 high 7.88 percent and breadth also corrected holding above its previous December, 1986 low. As we can see, from the May, 1987 low the DJIA has continued to post record highs, while breadth action has been poor. In order for the bull market to again be confirmed, breadth will have to move ahead to a new high – a formidable task. As far as new highs and lows are concerned, the ten-day average in January, 1987 moved to a level above its previous peak, confirming the uptrend. Subsequent action of this indicator produced declines below the zero line and a less than impressive performance relative to the stock markeL Although performance since May has been improving. in order to indicate an ongoing uptrend, the new high minus new low index must move above its January, 1987 high. If the stock market is to continue its advance it becomes clear that the internal strength in the market, as measured by indicators such as market breadth and new highs-new lows, must improve in order to sustain the advance. We only have to look to the March-December, 1986 perIOd above to see that this, in fact, has occured in the past. i.e. deteriorating breadth and the ten-day average moving below the zero line followed by a 500-point advance. However, major market declines do not historically emerge overnight. They tend rather to be preceded by a lengthy process of deterioration. We know a divergence conditon exists in this maturing bull market. As the market continues to post new highs, constant inspection of these market indicators is essential. ROBERT J. SIMPKINS, JR. DELAFIELD, HARVEY, TABELL INC. RJS ebh Dow Jones Industrials (1200) 2476.24 S & P 500 (1200) 308.49 Cumulative Index (7123187) 3915.83 No statement or expression of oplmon or any olher matter herelfl contalnad IS, or IS to be deemed to be, directly or Ifldlreclly, an offer or the sohcltatlon 01 an oUer to buy Of sell any security referred 10 or mentioned The matter IS presented merety tor the convemence of the subSCriber While we believe the sources of our Information to be reliable, we In no way represent or guarantee the aCCllracy thereof nor 01 the statements made herem Any action \0 be taken by the subSCriber should be based on hiS own Investigation and mformatlon Delafield, Harvey Tabell Inc, as a corporation and Its oHlcers or employees, may now have, or may later take, positions or trades m respect to any SeCllrltlcs mentioned In thiS or any future Issue and such position may be dillerenlirom any views now or heleafter expressed m thiS or any other ISSlle Delalleld Harvey, Tabell Inc whiCh IS registered wl1h the SEC as an Investment adVisor, may give advice (0 ItS Investment adVISory and other customers Independently of any statements made m thiS or In anv other Issue Further Iflforma!lon on any seclIrlty mentIOned herem IS available on request