Tabell’s Market Letter – April 21, 1989

,-. 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 April 21, 1989 The shsrp, sudden upward move into new high territory on Tuesday and Wednesday suggests that -the market's short-term -corrective -phase, -which beganon .F..bruary 7.th ,-may ,have.been completed with the double low at 2243 on March 1st and March 23rd. This 4.4 pullbaok would qualify as the smallest correction of the bull market so far. This, Indeed, is encouraging, but it is hard to find other signs of Improvement. The Tuesday rise produced a tepid 173 new 52-week highs, this with the Dow having been under 2000 a year ago. Breadth action, moreover, remains subpar, and we ask the reader to bear with us In our explanation of the massive panoply of numbers set out in the table below. Pts Pc\. Pcl 1 Chanse lIe Adv lIe – Pts Pel Pel tl Chane ite Ay ile – Pt. Pcl Pcl 1 Ch.. 11e Adv ile – Ph Pd. Pel 1 D.l, Ch,n. il. Adv ile – -.6AY 31 88 ' 48 99 111 9b -3 ftAR 29 88 18.57 90 102 83 -7 HAR 31 88 9.94 76 B24' -21 FEB 7 89 4.82 61 616 1 APR 6 BS 64.16 99 1187 94 -5 JUN 30 88 19.73 89 1164 93 4 APR 3 89 11.18 7 82 61 -14 OCT '89 4.4 61 864 64 3 5EP 2 88 52.28 99 1J97 96 -3 JUH 3 88 18.85 89 946 74 -15 NOV IS 88 9.96 75 841 61 -14 MAR 8 89 4.83 61 785 4 -12 JUH 8 88 48.36 99 1306 97 -2 OCT 18 88 19.39 89 891 67 -22 JUN 17 89 9.78 74 662 30 -44 DEC 1 88 4.27 60 817'4 -6 JUL 29 88 46.40 99 1178 94 -4 MAR 6 89 20.53 89 995 81 -9 JUL 14 88 9.25 73 779 49 -24 JUH 6 88 3.91 5' 854 61 2 OCT 20 88 43.92 98 1058 86 -12 MAR 16 89 20.17 8S 939 74 -14 APR 26 BS 8.62 72 926 12 0 DEC 13 88 3.91'9 '41 16 -43 JUN 22 88 43.03 98 1144 92 -6 AUG 16 99 17.24 9 984 6S -23 OCT 29 88 9.06 72 68 61 -11 DEC 28 89 3.1'6 790 50 -8 OCT 7 ae 42.68 99 1140 92 -6 HAY 16 88 17.08 88 901 68 -20 APR 11 89 9.71 72 978 65 -7 NOU 21 88 3.'. 56 5. 19 -39 JAN 27 89 43.75 9a 929 70 -28 APR 5 99 16.91 99 915 70 -18 JAN 25 89 9.46 72 920 54 -18 SEP 12 98 3.56 56 606 24 -34 AUG 24 88 37.34 98 1089 89 -9 SEP 14 88 17.60 97 979 79 -9 APR 15 88 8.29 72 573 20 -52 JAN 89 3.'8 ' '6 16 APR 14 89 41.06 97 1074 89 -9 DEC 16 88 17.71 87 998 80 -7 OCT 10 88 8.71 71 693 38 -33 JAN 13 S' 3.75,8 836'6 -2 APR 18 89 41.61 97 1047 85 -12 JAN 31 89 18.21 66 960 75 -11 JUN 10 68 8.36 71 675 64 -7 HAR 21 8' 3.7' 56 995 69 II JAM 24 99 38.04 97 1009 91 -16 HAR 28 89 17.68 86 638 60 -26 DEC 23 88 8.57 71 651 64 -7 APR 2' 88 J.15 755.4 -13 SEP 29 88 33.79 97 1065 88 -9 DEC 29 88 16.25 85 987 78 -, AY 19 88 7.63 71 6.0 27 -.. 5EP 28 88 3.20 5' 0 46 -11 JUM 1 88 32.89 97 1290 97 0 JUL 15 88 15.83 85 787 5. -34 HAR 3 89 8.5e 70 865 64 -6 5EP 21 88 3.02'6 689 36 -20 JAM 4 89 33.04 96 1187 94 -2 HAY 3 88 15.09 85 897 66 -19 fEB 28 89 8.03 69 'II 70 1 OCT 2' 86 3.02'6 7.9 39 -18 DEC 5 88 31.48 94 929 71 -2S JAM 12 89 15.89 84 907 68 -16 APR 12 89 8.07 68 818 54 -14 NOV 8 88 2.85 56 8'2 61 , -Z' ' . 7JUL 28 88 28.63 95 884 67 -28 NOV 23 88 14.58 83 893 70 -13 OCT 17 88 7.29 68 7.9.3 AUG J 88 2. 6 -9 PR 22 88 27.67 95 940 74 -17 NOV 17 88 13.87 83 435 24 -57 OCT 13 88 '.12 68 71 45 -23 HAY 12 88 2.14 6,1 -J APR 8 88 29.02 95 1110 90 -5 APR 12 88 14.09 83 898 47 -14 AUG 26 88 6.58 67 72' 2 -Z5 NOV ' . 8 2.31'4 I JO 24 JUt S 88 27.03 94 934 74 -18 KAR 27 89 14.82 82 767 48 -34 JUH 15 88 6.93 67 781 48 -19 OCT 21 88 2.31 54 , 44 -10 JaM 21 88 25.24 94 937 7S -17 JUL 20 88 13.34 81 849 60 -21 MOU 28 88 6.76 67 110 38 -29 JUL 26 88 2.14 54 764 41 -1 lEe 6 88 25.40 94 914 69 -25 NOV 3 B8 13.51 81 781 48 -33 FEB 16 89 7.50 61 816 5 -12 APA 21 88 1.91'4 668 J2 -22 JUN 14 88 25.01 74 110489 -5 rtAR 15 89 14.29 81 798 53 -28 IAPR 19 89 7.51 67 827 55 -12 MfIJ 1 88 1.'8'2 8JO 5h – – – – ——-1;;-;1—–!-!- !.- -3–!–;–2 -!1i-;- -;- FEB 1 89 26.01 93 1095 89 -4 JAM S 89 12.86 80 837 59 -21 IAPR '5 89 6.60 65 181 50 -15 fEI 21 et i.6S,1 611 J -ze JAil 26 89 25.18 92 962 15 -17 .JAil 18 89 24.11 72 1036 B4 -8 MY 24 88 21.05 92 948 76 -16 ,JUJII 28 88 22.41 '12 905 71 -15 MR 13 89 24.11 92 878 os -21 NOV 15 88 12.09 79 FEB 17 89 13.39 79 AIL 13 88 U.91 79 IIOV 22 88 U.73 19 APR '89 12.83 78 715 38 -41 946 75 -4 782 48 -31 719 40 -39 881 66 -12 SEf 16 B8 AfR U B8 Sf 9 88 MY 24 88 IfOV Z. 82 5.87 ,I 5.eo 65 5.69 44 5.3e 64 5.e7 44 889 67 2 939 71 4 8-46 40 -4 7f!7 53 -11 468!O -J.4 MR i8 as iIWG 18 8S OCT 6 se MR z.e Be ,AOO 2 sa i.D'1 i.07 50 i.06 50 0.82 50 0.11 49 716 140 J1 42 –Ue ,ez.'2 2 .48 10 -40 1U 4i –e IUlR 11 ae 21.12 '12 995 79 -13 RAY 2 88 10.94 71 617 24 -53 11M 29 S9 5.98 64 741 42 -22 . 1 7 o.n ..' 6f1 J4 -I' 0.9.'…. n aa 2l.O'!i 92 '39 71 -21 lIAR 31 89 12.28 77 1038 as 8 AUG 11 ee 5.16 43 . u 29 -34 fSP 7 88 !' lID 88 21.91 91 841 58 -33 JlK. 25 88 10.84 77 M!2 34 -43 ..II&. U ea 516 63 '759 4' -Jt 7 a 050' f'IItI 78 MIl .2 119 22..67 91 982 80 -11 SP 6 88 10.67 71 Eel t5 -22 FEr 2J 89 553 OJ 741 44 -19 ,JM 19 eJ 016 …, e … 5J I IS 89 22.68 91 907 69 –22 SEP 13 &e 1067 7& 7B5 51 -25 – 9 S9 5.17 62 BeO 44 2 J.4 IS'f OH .., t.e,JJli -14 I!OV 29 118 20.09 90 938 73 -17 SEP.,,3 88 10.67 76 744 42 -34 1tU&l7 88 ;45 &1 660 U -10 Our breadth index reached its high on March 11. 1988. and there have been. since then. 216 trading days of which 151 saw the DJIA advance. Statistics for each of those 151 days are shown above. Although point changes are shown. the days are ranked in order by percentage change In the Dow. Thus the 74.68-point. 3.8 advance of May 31st is listed first. The next figure shown for that day is the advance's percentile within all of the 11.092 trading days since 1946. The rise exceeds that of more than 99\ of such days. (Indeed. it is the 19th largest advance in the entire period.) As the table shows, however. it produced only 1.211 advanefng stocks. 62 of all Issues traded. On this basis. the dill' ranks only in the 96th percentile of all trading days since 1946. The difference (96 less 99) is shown in the final column. Similar statistics are given for all 151 days. According to this standard. on no fewer than 135 of the 151 advaneing days in the past 13 months, breadth action WIlS subpar. The average difference between the percentile based on percentage advance in the Dow and the percentile based on percentage of advaneing stocks was 15. l8king all of the 276 days in the stndy. the average percentage of advaneing stocks out of all issues traded 1I8S 37.n Despite the fact that the period in question was a bull market. this is below the 39.71 average which includes all bull and beAr markets since 1946. This continuing beIo..-average breadth suggests that further market strength. whfJe JfkeJy. will be relatively .adest and characterized by rotational leadership. as has been the with the ad so far. no… -…s Industrials nzl!O) Z3!13.911 s P 500 (lZOO) 39i.n JUT'THOIIGY 11'. TABELL DELAFIELD. HARVEY. TABELL me. Culnu!a1live Index (4ZIl89) 0419.1111. A1FTlt No statement or expression of opinion or any other matter herein contained IS, or IS to be deemed to be, directly or Indirectly, an oHer or the soliCitation of an offer to buy or sell anysecurrty referred to or mentioned 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 or guarantee the accuracy thereof nor of the statements made herein Any action to be taken by the subscnber should be based on hiS own InvestlQallOn and In.formatlon Delafield, Harvey, Tabellinc ,as a corporation and liS officers or employees, may now have, or may later take, POSitionS or trades In respect to any securrlles mentioned In thiS or any future Issue, and such pasloon may be dlfferenlfrom any VIews now or hereafter expressed In thiS or any other ISsue Delafield, Harvey, Tabelllnc, 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 olher Issue Further information on any secUrity menllOned herein IS available on request