— TABELL'S MARKET LETTER 600 ALEXANDER ROAD, CN 5209, PRINCETON, NEW JERSEY 08543-5209- MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (609) 987,2300 February 5. 1988 liThe vtovmg Finger writes; and. having writ. Moves on nor aU your Piety nor Wit Shall lure it back to cancel n,llf a Line, Nor aU you!' Tears w8!lh!'0l1t aWord of it.– .– – — 0 —- Edward FItzgerald, The Rubaiy';-t of Omar Kh Tnere is 1 strange flavor to much market comment being heard today It seems to nave virtually forgotten October 19. 1987. Now, we are perfectly aware that hardly a day has gone by without some piece of news regarding that fateful day and its aftermatn. The bulk of this comment, however. has concerned the actions of investigative bodles such 85 the Brady Commission, the SEC, etc. The intent of these groups is. indeed, admirable. They are probing for reforms in market structure, wnich migot mitigate against the recurrence of shocks of the magnitude of October 19 in the future. However prfliseworthy these efforts may be, they are, for the market technician, largely irrelevant. For the technician is a market historian. What he seeks are clues derilTed from past market behavior which may yield some insight into future behavior. For him, the essential fact is thAt October 19 happened. Toe difficulty lies In knowing how to interpret it. One of the first relevant statements WhICh can be made about Meltdown Monday is that it establishes the current market direction as being down. We do not necessarily mean this statement to be bearish. Indeed, just a few weeks ago, we issued a year-end forecast suggesting that 1988 might be an Inside yeaI'll. one in which the year's low would not be significantly below the October 19 bottom of 1738.74 on the Dow. or significantly better the August 25 peak of 2722.42. Such a forecast implies the likelihood of a basing period which might ultimately end with enough accumulation having taken place to suggest a new bull market—with the further implication that such rebasing might take place without important new lows being attained. However, until such a base is clearly established. the burden of proof must be on the bulls. The monstrouc;; technical damage done by a 36.13 decline over a 3S-day period—which is what took place between August 25and October 19—is not going to be easily – recfified. Thisis wnat–we mean when we sayfne tecnnician must recognize -tne -simpre-facflhat – — October 19 did actually happen, and that ite; shadow still hangs over today's market. 1- The problem with interpretation is that there are precious few prior events similar to October 19 with which we can compare it. We, along with everybody else who comments on the stock market, have mentioned the obvious one, the 56-day drop from September 3 to November 13, 1929. which took the Dow down 47.87. There occurred between September. 1932 and February. 1933 a 37.25 decline in a 40-day perIod, but neither the market nor economic background of that time can be said to resemble what exists today. The year-long bear market which began in March, 1937. might be said to possess some relevance. The Dow ultimately declined almost 50. but there was no interruption at all similar to tne one which has taken place from October 21 to date a time span of some three-and-a-half months. The length of tne 1938 – 1942 drop, three-and-a-half years, makes it, also, totally unlike the present downswing .1ust two bear markets of the current era are comparable to the present one in extent. The 36 drop in 1968-1970 is one. and anotber is the decline from January 11. 1973 to December 6. 1974. This latter instance may teach some useful lessons. It began with a year-long downswing of 25 in the Dow, with the low attaIned on December 5. 1973. There followed some seven months, to early July, 1974. during which the Dow failed to penetrate that December low. However. the low ultimately was broken, and a second phase of the bear market began, taking the average from 859.67 on June 10 to 577.60 on December 6, a fall of 32. There is. therefore, some precedent for an ongoing bear market's beIng interrupted by a trading range. such as the one in which we now find ourselves. What we hope the above makes clear is that the technician as market historian has very little to guide him at this stage. The experiences of the 1930's do not appear comparable to the present day, and the single recent case, where a secondary decline followed a protracted trading range, was just that. a single case in 1974. Even though the bear market of last fall looms over the present market like a dark shadow, it is hard to tell just what the effect of that penumbra will be. It is for this reason that we continue to advocate a policy of caution—one of patient waiting for the market to tell its own story. ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL INC. AWTebh Dow Jones Industrials (1200) S & P 500 (1200) Cumulative Index (2/4/88) 1926.55 253.38 3333.63 No statement or expression of opInion or any other matter herein contained IS, or IS to be deemed to be, directly or Indirectly, an offer or Ihe sollcrtatlon of an offer 10 buy or sell any security referred to or menllOned The matter IS presented merely for the convenience of Ihe subscnber While we believe the sources of our Informallon to be reliable, we In no way represent or guarantee the accuracy thereof nor althe statements made herein Any action to be taken by the subSCriber should be based on hiS own investigation and Informabon Delafteld, Harvey, Tabelllnc, as a corporation and ItS officers 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 poSition may be different Irom any views now or hereafter expressed In thiS or any other Issue Delafield, Harvey, TabeU Inc, which IS registered With the SEC as 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 security mentioned herein IS available on request

TABELL-S MARKET LETTER 600 ALEXANDER ROAD, CN 5209, PRINCETON, NEW JERSEY 08543-5209 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (6091 987-2300 ,. February 12, 1988 mi9 onti!le speculation that the Federal Reserve is easing credit and predictions by the Reagan administration tnat the D.8-. traoe-deficit wIll aecIine -this'year;-both- the stock ….market-antl-the bond market advanced this week .. Smce October 19 of last year. large advances. such as the 47-point gain on Wednesday. and similar declines in magnitude in the Dow Jones Industrial Average, have continued to broaden the trading range which has contained the DJIA between 2060 and 1730. Withm this framework. continued rotation of leadership has been apparent. For example, the consumer non-durable and interest-sensitive sectors, WhICh led the previous advance, has shown SIgns of relative loss of momentum. To put this in proper perspectiv, we have taken a monthly average of S &. P groups that either constitute an inflation hedge or would be a disinflatIon beneficiary and have created two separate indices. Inflation hedge groups would include. among others, metals. gold. steel, and the entire energy sector. Disinflation beneficiary groups would include airlines, drugs, foods, and the interest-sensitive sector—banks. insurance, and utilities. E eSTRNORD POORS 5QO lNFLRflOtI HEDGE VS OISINFLPTlDN BEtIEFIC1PRY RPTIO The chart above shows the monthly close of the S P 500 and the ratio of the inflation hedge index to the disinflation index from January. 1972 through January, 1987. If the inflation hedge index is advancing more than the disinflation beneficiary index. the ratio line is going up (1972-1980). Clearly. it can be shown from the chart above that the inflation hedge sector has underperformed those groups which are disinf1ationary beneficiaries since the start of the bull market, August. 1982. But it is possible to go back even further than this date. to identify the beginning of this significant change in the market environment. The ratio reached its high at the end of 1980 coincident with the high in the S P 500. This day, by hindsight, signaled the peak of the ratio of inflation hedge stocks relative to those stocks that are beneficiaries of disinflation. It was during the subsequent correction in the market to the August. 1982 low that the inflationary-hedge index turned down. This occurred while the disinflationary beneficiary index continued to move ahead in the face of a 15 decline in the S & P 500. The final confirmation of this Significant internal change came when the market rallied dramatically in August, 1982, but failed to include the inflation hedge sector. Currently. from the ratio peak of November 1980. the inflation hedge sector has declined with minor interruptions approximately 55 through July, 1986. The disinflation beneficiary index. on the other hand. has increased 174 to date. This is not to suggest that an immediate switch into the disinflation beneficiary sector was warranted shortly after the peak in the ratio in November. 1980. Rather. we -suggest an examination of the ratio over time wouldreflect the gradual internal.change.within … the –' market. By the August, 1982 low. this change should have been clearly identified with appropriate shifts in weighting made in order to participate in the advance which was to come. Where are we now in terms of this ratio We know from monitoring this type of series. the ratio peak was not coincident with a major market turn, in fact. occurring in November. 1980 well before the August, 1982 low. Therefore. conversely. the recent improvement from the ratio low established in July. 1986. well before the October, 1987 market decline. is now, perhaps, beginning to reflect a major shift in market sentiment.. Next week, we will examine individual S &. P groups in order to identify those changes occurring within the broad trading range that has contained the DJIA. ROBERT J. SIMPKINS, JR. DELAFIELD, HARVEY, TABELL INC. RJSebh Dow Jones Industrials (1200) S & P 500 (1200) Cumulative Index (2/10/88) 1977.45 257.54 3390.50 No statement or expressIOn of opInion or any other matter herein contained IS, or IS to be deemed to be, dlreclly or Indirectly, an offer or the soliCitation of an offer 10 buy or s!! any secUrity referred to or men1lOned The matter IS presented merely for the convenience of the subSCriber While we believe the sources of our Information to be reliable, we m 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 Investigation and Information Delafield, Harvey, Tabell Inc , as a corpora\!on and ItS officers or employees, may now have, or may later take, pOSitIOns or trades In respect to any secuntles mentIOned In thiS or any future Issue, and such position may be different from any views !\Ow or hereafter expressed In thiS or any other Issue Delaheld, Harvey, Tabellinc. which IS registered With the SEC as 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 securrty mentioned herein IS available on request

'U'LinBHELL S Iil1i1 Lin IRl &;; IE'U' LIE'U''U'E1Rl 600 ALEXANDER ROAD, CN 5209, PRINCETON, NEW JERSEY 08543-5209 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (6091 9S7-2300 – February 19, 1988 – The-performance of-thestockmark etfor -the-week must-be -describedas unimpressive. , The current position of the Dow Jones I ndustrial Average continues to be contained in the often referred-to trading range, which has confined the DJIA from the October low of last year, between a high of 2051.79 and a low of 1738.74. In a relatively short period of time, due to increased volatility, it can be shown that within this trading range there have been a DATE DJIA CHANGE DAYS/SWING number of completed short term swings as Shown in the table to the right, together with the percentage change and the length of each move. As we discussed last week, a closer examination of these market swings during this period, using the Standard & Poor's group indices as a proxy, shows an interesting process developing. On the back page these Standard & Poor's groups are ranked by percentage change, best to worst, for two periods, December 31, 1986 to October 21, 10 16 87 10 19 87 10 21 87 10 26 87 11 02 87 12 04 87 01 07 88 01 20 88 02 16 88 2246.73 1738.74 2027.85 1793.93 2014.09 1766.74 2051.89 1879.14 2005.97 0.00 -22.61 16.63 -11.54 12.27 -12.28 16.14 -8.42 6.75 o 1 2 3 5 23 22 9 18 1987 and October 21, 1987 to February 17, 1988. Examining these two separate periods clearly demonstrates the diverse behavior of these Standard & Poor's groups from one period, the final phase of a mature bull market, to another, the recent trading range from October, 1987 to date. Reviewing the first time period, we have been aware, as discussed last week, of a shift Which started prior to October 19, 1987 from the disinflation sector into the inflation beneficiary ectQ.hLs ifref1eted in.1he performance of,theindividual Standard.& Poor's.g!,oup's., . Rank Group Oct 21, 1987 to Feb 17, 1988 Percentage Change Rank Group Oct 21, 1987 tn Feh 17. J9R8 Percentage Change TIRES RUBBER RETAIL STORES DEPARTMENT TEXTILE PRODUCTS GAMING COMPANIES AUTO PARTS-AFTER MARKET METALS MISCELLANEOUS PERSONAL LOANS MACHINE TOOLS HOME BUILDING MACHINERY DIVERSIFIED STEEL 27.2785 26.7649 25.6863 20.8140 19.4948 16.3779 16.2273 16.1993 15.6984 15.6657 15.0114 MULTI-LINE INSURANCE -7.7961 ELECTRONICS SEMICONDUCTORS -8.6771 RAILROADS -8.9376 GOLD -9.2765 ELECTRICAL EQUIPMENT -9.3352 BROKERAGE FIRMS -10.0765 MONEY-CENTER BANKS -13.4763 PUBLISHING (NEWSPAPERS) -16.4271 INVESTMENT COMPANIES -16.6322 AIR FREIGHT -19.1489 TOYS -22.2222 What is interesting, however, is the performance of these same groups from October, 1987 to date. The list above shows the percentage change of the best and worst groups for this period. The natural resource sector (metals-miscellaneous and steel), capital equipment (machine tools and machine-diversified), and consumer durables (tire and rubber, auto parts-after market, and home building) are well represented. Also another major sector, showing improved relative performance, is energy and is technically positioned to assume market leadership. Just as interesting for this sallle p-eriod'\s- the-representation of the financial' sector in the -worstacting'groups. Something is going on within the limits of this defined trading range. As this letter has pointed out repeatedly in past weeks, it is possible for this process of rotational leadership from sector to sector and group to group to evolve within the current trading range. New leadership in sectors, such as natural resources, energy, capital equipment, and consumer durables seems to be emerging. If, in fact, this trading range breaks out on the upside, this rotational process that we are monitoring should give us a clue as to the leadership of the next advance. ROBERT J. SIMPKINS, JR. DELAFIELD, HARVEY, TAB ELL INC. Dow Jones Industrials (1200) 1987.07 S 110 P 500 (1200) 257.94 Cumulative Index (2/18/88) 3424.49 No statement or expression of Opinion or any other matter herein contamed IS, or IS to be deemed to be, dIrectly or Indirectly, an offer or the soliCitatIOn of an offer to buy or sell any secunty referred to or mentioned The matter IS presented merely for the convenience of Ihe subscnber While we believe Ihe sources of our information to be reliable, we In no way represent or guarantee the accuracy thereot nor oflhe 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 corporahon and Its officers or employees, may now have, or may later lake, poSitions or trades In respecllo any secUfibes menl!oned In Ihls or any future Issue, and such poslbon may be different from any views now or hereafter expressed In thiS or any other Issue Delalleld, Harvey, Tabell Inc, which IS registered With the SEC as an Investment adVisor, may 91ve adVice to Its Investment adVISOry and other customers Independently of any statements made In thiS or m any other Issue Further Inlormatlon on any secunty mentioned herem IS available on request DC l lS6 TJ JCT 1 19;7 PRETA DT 21 1937 T '00 7 l'l83 JKCNT CiAG CrlA uLJ ; ) T'.L 4 EETGNrsMl(CNVTCs 5 MrlS NlSCELLAt1US o CuAT o 70.293 5L.711l 39.)573 ,7.7741 3T.412 31.S92 -1.8457 -.27 15.0114 -8.0771 lb.317 8.Z 1 '-LUfH.'W,,,\ J XCLUlG 2N .40TOR CLJING I.S.M 10 POLUTION C!)Nf ROL 11 CrllEY-D1VRSlflc0 1 oVlu E) 31.2736 30.5637 3J.l97 1.;.46'9 Zi.TZ24 20.51)8 9.0713 '1. S 35) -6.57'3 -4.2tu5 5.667 -O.133 .1.3 T('c4.C\C l cNTRTAINNT 15 OIL Well E'JrMNT N 5c 10 M.JF.\CTUNG(QIV. IN.) 17 ELf';T;CA (.;LlIPMENT — 2.33;4 19.4406 13.91S1 11.4725 l.H93- -.31S7 6.9.6 -1.758c 6.3356 –9335 -. d PU2J..l!iIN'; IS TEXTILE PODUTS ,LO all INTEGR.lTcD INTERNATIO 21 iHU; 22 OIL C8MPC5IT .u SJFT DRINKS 24 ELrCTxONICSOEFEN5E Z5 GcNE.l MERCHANDISE CMAINS (0 AuTOMOBILE 21 ELECTRONICSISTRdMENTATIQ za HARDWARE TOJLS 2. HJUSfnOD PROGUCTS .0 COMPUTeR SYSTEMS 31 TIRES RUB3EQ 32 OIL INTEGRATED DOMESTIC 33 RAILROADS 34 FOCi) CHAI,V 33 COMMUNICATION EQUIP/MFRS 3 Q CM EMI CAL 5 J7 HOTCl/MOTl 3d CONTAINER PAPER 3j Si.P 500 40 AUTJ PARTS-JRG. EQUIFMENT 41 PUolISHIN; (NEWSPAPERS) 42 CQNTAINE METAL & GLASS ,.3 – C.JN';lQMERA.TES – H. l07 -1 131 14.3704 25.68.3 14.2404 0.9517 13.9363 2.5511 13.3533 .. 4 OC 12.316 -3.6604 12.0291 1.aS9; 12.6935 -3.113' 12.0063 10.3024 11.S097 12.2249 11.1781 11.4971 10.7BoO 2.3799 10.73,2 -6.26Bl 10.5620 Z7.Z7b; 9.9427 6.204, 9.3067 -8.9375 9.00,5 9.2343 8.5,04 9.6340 8.6904 2.4502 7.3503 -0.1107 6.75.1 11.3265 6.937 0.3212 6.5079 3.5699 5.3119 -16.4271 5.3455 -6.9076 ……7746.. -0 .7S42 ' – – – – . . 44 CDS,oTrCS 45 TEliPrlONE (NEW) 46 FDOJS 47 CMEMlCA lS -0 IV. 4a Sti02S 4. McOrCAl PRODUCTS & SUPPLI SO HEALTH CARE-OIVERSIFlcO 51 ReTAIL STOES(ORU.) 52 RETAIL STORES COMOSIrE ,3 NATURl G4S '4 PAPER ;;3 OFFICi QUIPI!NT -. SUI'LlE 5. HEALTn CARE-COMPOSITE ;7 AUTO TRUCS PARTS 53 PRDPRTY-CASUALITY IN SUR AN 59 MdlTI-lINE INSURANCE 60 CDMPUTER SOFTwARE t SERVIC 61 GAMING COMPNIES 6. HOSPITAL MANAGEMENT CDMPAN 4.33.0 3.6992 3.3260 2.9114 2.4371 1.0111 1.4619 1.1112 0.3911 0.6633 0.643S 0.0000 0.0000 -0.2&39 -).3680 -0.9735 -1.3252 -2.2160 -3.2037 14.930b -0.5111 5.2005 B.4563 7.0000 12.4714 6.3305 5.5H, 4.2513 -0.4d60 6.4385 0. 0000 4.2017 0.653 -4.0193 -7.19bl 6.15.1 20.8140 -0.8614 6J RESTAURNrS -3.lOl 64 INVc;TMNT COPAN1ES -3.7160 65 AUT PARTS-AFTER AKT -3.B306 .6 TEXTIL APAREL MFRS. -4.122 67 FOREST PRJDUCTS -4.9&03 68 AiR TRANSORT -5.1758 I – – – – – – – – – – – – – – – ; u – – ; ,0'c1 cMAoCH,INrEn T,RaGnL.ISS'–..–n''''-'5C;.5't.7,9'9O 2.678 -16.6322 19.494, -b.4 'n 1 11.1035 -1.0S), 16 .. 14. 411953;.;;.,———–1 71 LE1UR TIM 7 AIR FRtiGHT 13 L!TlC OMPlNIES 7.. LIFt IN.iUANCE. 75 HucSEHCLO F A 70 AERJSPACE-EFNSf 77 MAJOR REGIONAL 3AK5 70 c.'101.1… 77 TRURS du RcTLL STRS JETMNT l RETJIL SP(CIALT 82 MONEY CENTER 'A.Ki TT.) e TqSP.-!SC. G 5aViNG.i t laA COPArs d7 MANJFCTCE OUIG hAlT C-SC o RSJNhl OANS 9J R ETATE !VcSTNT TRU 9L 6CKEA FIRS , HJM 3UILIN -.311 -3.997 -10.U454 -11 .. J565 -12.0656 -12.Z96 -1.551 -13s.7244 -13.197 -14.4027 -15.0155 -15.a473 -15.43S0 -1.lZ09 -17.7014 -lo.Oo4 -ld. 1 433 -1'.c301 -l;tl.1S,l -21. 39S -30. 6,1 -;. 015 .92J -19.167 1.2191 .2.634' 6.2706 O.161 -.505 2 .. )277 -3.1;7 26.749 O.J1 -13.4763 o.a90 -22.22i 4.0170 -6.S113 -.4J0 -Z.S434 15.2213 3.11 -10.07 E.,,4

— — — – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – TABELL'S MARKET LETTER 600 ALEXANDER ROAD, CN 5209. PRINCETON. NEW JERSEY 08543-5209 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (6091987-2300 February 26. 1988 ..–1–.– ,-For….a –rmativ ely b r-1-ef-Jft'01nen-'–rhis week.;–on…. Thul'sday ;-it…..app-eared theDow–J-on-eS.'Indu-strial'''-Au'… was going to break out on the 'upsidefrom tile previous ninety trading days -that -has contained the since October 19 of last year between a closing high of 2051.89 and a closing low of 1738.74. Such was . not the case, 8S the DJIA again returned, ad naseau, to the often-mentioned trading range, discussed at length by us in the recent past. The chart below is an updated version of a chart that appeared in this letter almost three months ago. It is a twenty-point unit, point-and-figure chart tracing the last two year's market action in the Dow Jones Industrial Average. It shows, in other words, each 20-point change in the DJIA from early 1986 to date. Also included are some key reference points on the chart. It is Interesting to again review the past performance of the DJIA. The 1800 level was first reached in March, 1986, and the DJIA spent the remainder of the year between 1780 and 1900. As 1987 began. the stock market dramatically advanced to a high of 2400 in April. Four months later, on August 25, the bull-market high, at 2722.42, was achieved. We are sll painfully aware of the subsequent correction culminating on October 19 at a closing low of 1738.74. Following that low, a two-day, 289-point rally to 2027.85 took place. There have been to date a series of eight swings in excess of 8 percent contained within the limits outlined above. Because of this increased volatility, a great deal of work has been done in a relatively short period of time. Currently, trading in the upper levels of this trading range, were the upside breakout to occur, an objective in the 2600 area for the DJIA is indicated, a meaningful rally but still below the old high. It could be argued that the breakout should ultimately occur on the upside as many of the other broad-based averages have, in fact, broken out of similar trading areas on the upside. However, we only have to go back to January of this year to remember the DJIA broke out on the upside only to return Shortly to its previous trading range. A large number of individual stock patterns have done exactly what the DJIA has done over these past few months. That is. individual stock patterns have broken out on the upside only to return totheir original support areas. We have observed increased volatility and the rotational leadership in the market and what we may be currently experiencing is nothing but more of the same. However, assuming the length ,of time the market has been contained within its trading range, as an ally, the recent short-term improvement in the market could be the precursor to a significant upside move in terms of the Dow Jones Industrial Average. RJSebh Dow Jones Industrials (1200) S & P 500 (1200) Cumulative Index (2/25/88) 2019.56 261.83 3506.33 ROBERT J. SIMPKINS, JR. DELAFIELD, HARVEY, TAB ELL INC. No statement or expression of oplnton or any other matter herem contained IS, or IS to be deemed to be, directly or mdnecUy, an offer or the soliCitatIOn of an offer to buy or sell any secUrity referred to or mentioned The matter IS presented merely for Ihe conventence of the subSCriber While we beheve the sources of our Information to be rehable, we mno way represent or guarantee the accuracy thereof norol Ihe 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 officers or employees. may now have, or may later take, poSItIOns or trades In respect to any secuntles mentioned In thiS or any lulure Issue, and such posilion may be different from any views now or hereafter expressed In thiS or any other Issue Delafield, Harvey, Tabetl Inc, which IS registered Wlththe SEC as an Investment adVisor, may gIVe adVice to Its Investment adVISOry and other cuS10mers Independently of any statements made In thiS or In any other ISSue Further information on any securrty mentioned herein IS avallabte on request