TABELL'S MARKET LETTER 600 ALEXANDER ROAD, CN 5209, PRINCETON, NEW JERSEY 08543-5209 MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (609) 987-2300 March 2. 1990 – –.-y!e–. herewithw.arn ……therearlr—th'!iour e!ter ,tbJwk, .. will-'—qQn8iJJt. a,..QscJl.iQ!1..Qf,,.,…..,..,..,….-.,,.J- the rather formidable array of numbers below Those who are turned off -by this sort of thing – – may immediately consign this sheet to the waste basket. Numbers freaks that we are, our own view is that these statistics manage to shed some useful light on the market outlook. 1989 HlSh Late 1989 Low Januar HlSh Januar Low Februar H'Sh Februar Low 3/1 DJ Ind. 2791.41(10/9) 2569.26(10/13) 2810.15(112) SlP 500 359.80(1019) 332.61 (11/6) 359.69(112) IIJ Tran 1532.01 (9/5) 1136.74(12120) 1201.10(1/2) DJ Ut,l 219.50(10/10) 211.96(10/13) 236.23(112) OTe Ind. 472.4 (10/9) 432.1 (11/6) 455.6 (113) Breadth 1026.90 (8/8) 1008.85 (11/6) 1015.56( 113) 2543.24(1/30) 2649.55(2/15) 2564.19(2/23) 2635.59 322.98(1130) 334.89(2/15) 324.15(2/23) 332.74 1031.83(1/30) 1088.19 (2/9) 1076.64(2/22) 1133.89 216.30(1125) 223.91 (2/9) 216.86(2/22) 219.13 410.7 (1/30) 434.2 (2/15) 424.1 (2/23) 431.8 996.77(1/30) 1001.04 (2/9) 996.05(2/23) 998.29 As can be seen. the table traces the history of five market averages plus our daily breadth index from late last year though yesterday. The left-hand column serves to suggest that the stock market scene, as of last October, was essentially tranquil. Most major averages were in the area of their all-time highs. and it would have been picayune to point out that breadth had not posted a high since August and that the DJ Transports apparently had peaked in September. There is the old story of the farmer whacking his mule across the forehead with a 2-by-4. asserting that this was iust to get his attention. The October decline—200 points on the Dow—occurring. serendipitously, on Friday the 13th—served admirably to get investors' attention. What followed was, for the market. a process of separating the men from the boys. For the Dow Jones Innustrials and Utilities. the break was a one-day affair with lows 1—-'belflg-postd.atb-'–othl'–indi.tor-s,a8Ahetable.ghows,wentontonewbottoms.,…- three weeks later The Transports-, in the course of emerging -as theweakest -of the-bunch continued to a new low in December. posting a whopping 25 decline. The year-end rally arriYed on schedule. and the first two days of the new year were bright ones. 8S the averages continued to move ahead. For the Industrials and Utilities, once more. new. all-time highs were involved. The S & P 500. however, marginally failed to better its October peak. and OTC issues. Transports and Breadth fell well short. It was clear, by this stage. that market leadership was becoming sharply narrower. January was a declining month with the low occurring at month-end. Most of the averages posted new lows. below the bottoms which had occurred in the fall of 1988. Only the Utilities were able to hold well above their prior bottom. although the DJIA also did so on an intra-day basis. In most cases, however. the penetration of October-December lows was decisive By this time, there was abundant evidence of market deterioration. Breadth was below its level of November. 1988 when the Dow was under 2100. The Transports. by this time. had shed almost a third of their value, and even the hitherto-strong utilities posted a fairly seyere decline. It was necessary to begin seriously to consider the possibility that January had seen a rna lor market high. A rally in all of the averages took place in early February. followed by a retracement in which most indicators—breadth. significantly. being an exception—held above their January lows. Prices have moved irregularly upward since. Those January lows and the subsequent. mid-February highs seem to us to be significant points to watch. Ability to penetrate the February peak convincingly. would suggest. for many indicators. a test of the January highs. This is particularly true for the DJIA. which has been showing above-average action for the entire period. It is interesting that the hitherto laggard DJ Transports have already exceeded their mid-February levels., On the other hand. failure of the current advance; … followed -by.newlows .below-those.of January, would buttress the contention that a major downtrend is now in effect. ANTHONY W. TABELL DELAFIELD. HARVEY. TABELL INC. Dow Jones Industrials (12 00) S & P 500 (12 00) Cumulative Index (3/1190) 2653.38 335.53 4773.88 AWTebh No statement Of expreSSion ot OPInion or any other matter herein contained IS, or ISto be deemed to be, directly or Indirectly, an Offer orthe solicrtahon ot an offer to buy or sell any secuTity referred to or mentioned The matter IS presented merely for the convenience of the subscnber While we believe the sources of our information to be rehable, we In no way represent or guarantee the accuracy thereot nor 01 the statements made herein Any action to be laken by the subSCriber shOuld be based on hiS own investigation and Intormatlon Delafield, Harvey, Tabellinc , as a corporation and rts officers or employees, may now have, or may later take, pOSitions or trades In respect 10 any securities menllOned 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 Delalleld, Harvey, Tabelllnc, which IS registered wllh the SEC as an Investment adVisor, may give adVice tOils Investment adVISOry and other customers Independently ot 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 NATIONAL ASSOCIATION OF SECURITIES DEALERS. INC (609) 987-2300 March 9. 1990 – – bre-a-kWoeuQtebysJthleed lst V!ee ,J!!l–'l ela9QrattatiJicaL.displayIn. all,—aJtgmp'Q-,ctt1t.a.;;-,;,,,, major averages above theIr -February -highs would,- from a 'II1 have some significance. suggesting a possible test of early-January highs. Before dry on the page. that breakout had indeed taken place. Our letter goes to press at noon on Friday. and the Dow closed the week above 2660. which was. on a point-and-figure basis. an upside breakout. The immediate follow-through, however. was hardly impressive. Monday saw a ten-point pullback on reduced volume. The breakout was confirmed on Tuesday with a post-January high for the Dow. but this also took place on below-average volume. Thursday strength brought the DJIA close to 2700, but breadth and volume improvement were minimal. It made one long for the good old days. when men were men and breakouts were breakouts—producing J more often than not. subsequent fireworks on the upside. The strength in the Dow coincided with like strength in the S & P 500. the Dow Jones Transports. and the NASDAQ OTC Industrials. Ironically. what has been one of the strongest sectors. the DJ Utilities has, so far. failed to produce an upside penetration. Likewise, perhaps more importantly. our breadth index has not yet exceeded its mid-February peak. The reader may have gathered. at this point. that we find ourselves less than overwhelmed by the week's action. One reason for this may be gleaned from the inspection of the two-paint-unit. point-and-figure chart for the S & P 500. reproduced below. The salient feature of the chart is the sharp January break below the October low of 330. making the entire 360-330 range. which had contained the average since late last summer, look like a distributional top. As we pointed out last week. however. the market's decline formed, during the first two months of 1990, la base of sorts. providing an upside platform for this week's move. The objective of that base. is. as we have indicated, in the vicinity of the old high. It is necessary. though. to wonder how easy this will be to achieve in light of the massive supply just overhead. Market breadth. in the meantime. continues indicators having. two weeks ago, moved to new lows. Another indication of weak breadth is the fact that the 10-day advance-decline total reached. back in January. the lowest level it had attained since October, 1987. This, by any standard. denoted an extreme-oversold condition. and from that point the market staged its current rally. This indicator is. of course. a short-term one, but the pattern of successive lows and highs often has longer-term significance. Thus. the appearance of the deepest oversold in two years is characteristic of the latter stages of an upswing. if not a bear market already underway. Given all this. it is not surprising that the follow-up to the breakout was lackadaisical. Paradoxically, if short-term market strength occurs. it is reasonable to suspect it might be sudden and explosive rather than slow and drudging. This thought is induced by the combination of widespread bearish sentiment -among investment advisors and apparent high levels of institutional cash. This is a combination which has produced buying panics in the past (i. e August, 1982 and July. 1984). Today, however. these conditions are being manifested, not after'-a 'decline but against the backgr-ound of a two-year-old –advance. with'ri18jor averages only modestly below their highs. The possibility of a test of the old highs. in other words. does indeed exist, but absent evidence of further market strength, a sustained advance is difficult to visualize at this time. ANTHONY W. TABELL DELAFIELD. HARVEY. TAB ELL INC. Dow Jones Industrials 02 00) S & P 500 (1200) Cumulative Index (3/8/90) 338.84 2689.64 4874.31 AWTebh No statement or expression of opInion or any other mailer herein contained IS, or IS to be deemed to be, directly or Indirectly, an offeror the soliCitation of an offer to buy or sell any seCUrity referred to or men\!oned The matter IS presented merely for the convenience of the subscnber While we beheve the sources of our information to be rehable, 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, Tabelllnc, as a corporation and lIs officers or employees may now have, or may later tak.e, poSitions or trades In respect to any securities mentioned In thiS or any lulure Issue, and such posllion may be different from any views now or hereafter expressed In thiS or any other Issue Delafield, Harvey, Tabellinc , which IS registered WIth the SEC as an Investment adVisor, may give adVice to lis Il'lVestmenl adVISOry and other customers Independently of any statements made In thiS or In any other Issue Further information on any seCUrity menliOned herein IS avaIlable on request

TABELL'S MARKET LETTER 600 ALEXANDER ROAD. CN 5209, PRINCETON, NEW JERSEY 08543,5209 MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (6091 987,2300 March 16. 1990 There has been 8 fair amount of comment, of late. on the subject of stock-market volume, much of it trtggll,recl.!)ythe faQ.t…!h!!L'22londay only 114.8 million shares changed hands on the NYSE. This was the n, – ''iov,.est figure for '19lHJ todate;-but it also conshtuteil' a 'record; fora'sHil longer 'perioo. 'InspectIon' reveals that the ten most recent days which saw lower volume were all associated with holidays. For non-holiday trading. Monday's figure was the lowest since September. 1988 and. with the exception of ten days in summer that year. the lowest of the entire bull market. DOW JONES INDUSTRIAL AVERAGE ,i ml m m m m 01to 0 0 0 0 mCOCmOOolOolCII Z…JOQ…!- . w u …, -, 1 (f) 0 oz u lLI 0 zmlIJa …., '- L As the chart above shows, the market has had to contend, of late, not only with deteriorating breadth, but with weakening volume.. The breadth weakness since August, 8 phenomenon to which we have repeatedly drawn attention in this space, shows up clearly in the daily advance/decline line, the center line on the chart. January's breadth high was nowhere close to the peaks of early summer, and breadth had, prior to recent strength, moved to a new low early this month. This is in direct contrast to the series of new highs on the DJI A. the upper line on the chart. The Bubject of this piece, however. is volume. It is our practice to smooth this figure with a 100-day moving average. which is shown as the lower, thicker line on the chart. For the 100 days ended December 22. 1987. volume averaged 205 million shares. an all-time record. As the chart shows. it dropped off to a level around 142 million shares in early 1989, and. after recovering somewhat, has posted a new low at 158.2 million shares yesterday. , This record is interesting in light of the longer-term pattern. Through the middle 1960's. volume tended to be a fairly reliable leading' indicator. It generally rose ,du-nngthe early .stages ,of ,bull markets and then peaked. with as much as a two-year lag, prior to the averages' reaching their highs. This lead-time evaporated almost to nothingness in the middle 1960's, and, since that time. volume has tended to top out around the same as the major market indices. The current upswing. therefore, may be the only one on record during which volume has topped out almost precisely at the bull-market start and continued to decline fairly steadily throughout a 62 major-cycle rise. In light of this history. it is hard to know how to construe the above phenomenon. but it is hard to call it bullish. It has tended to be a technical rule of thumb that falling prices can often occur on diminished volume but that sustained rises usually require expanding activity on the upside. Such activity in the current bull market. though. has been conspicuous by its absence. ANTHONY W. TABELL DELAFIELD. HARVEY. TABELL INC. Dow Jones Industrials (12 00) S & P 500 (1200) Cumulative Index (3/15/90) AWTebh 2717.34 340.53 4872.32 No statement or eJ(presslon of opinion or any other matter herein contained IS, or IS to be deemed to be, directly or indirectly, an offer or the solicrtatlon of an offer to buy or sell any securrty 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 represeT\l or guarantee the accuracy thereof nor 01 the statements made herein Any action to be laken bylhe subSCriber should be based on hiS own InvestigatIon and Information Delafield, Harvey, Tabelllnc, as a corporallon and Jts officers or employees, may now have, or maylaler lake, pOSJIIOflS or trades In respect 10 any secun/Jes menllOned 111 Ihls or any future Issue, and such pDSJlJOfI may be different/rom any views now or hereafter expressed In thiS or any other Issue Delafield, Harvey, Tabell Inc , which IS registered With the SEC as an Investment adVisor, may gIVe advice to Its Investment adVISOry and other customers mdependently 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 RDAD, CN 5209, PRINCETON, NEW JERSEY 085435209 MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (609) 987 2300 March 23, 1990 A new factor, one with which the U.S. stock market found itself temporarily unable to cope, –. – w a s -introduced '-into -thefinancial-equation-t-his-weekhat –factor;w8s a J apanesebear-o'-market. — . Such an event has been predicted by outraged bears for at least the past half-dozen years. It was hardly surprising, therefore, that the NYSE was uncertain how to react when the shoe finally dropped. For statistics freaks, the Tokyo market, conventionally measured by the Nikkei Index, is a mine of not-so-trivial mformation. For example, on May 16, 1949, the day the Tokyo market reopened, the Nikkei and the Dow were at almost precisely the same level, around 176. At recent highs, the Dow had just managed to edge above 2800, The Tokyo index was just under 39,000. It is possible to note as well that, from 1974 to the end of 1989, the Nikkei has managed to increase by well over 1000. During that time, there took place no correction of greater than 20, with the single exception of a short 21 drop in sympathy with our market in October-November, 1987. Thus the current Japanese downswing—just over 23 at Thursday's elose—is that country's steepest decline in 16 years N!VKEI INDO( 10 ,)NTH .AVERAGE DOw JONES INDUSTRIAL AVERAGE Ie '10NTH AVERAGE The chart above, presenting a long-term comparison of the New York and Tokyo markets since 1949. raises a few analytical points. Not the least of these involves calling into question the dictum that our own market and the Japanese one must move in parallel. Although they have more or less done so recently. there were a fair number of instances in the early days when the two markets managed to move in precisely opposite directions. . At the very outset, in 1949, when the U.S. market was embarking on the longest secular uptrend in its history. the Nikkei was undergoing its most severe bear market, a decline of, if you please, 51.7, unequaled on this side of the Pacific since 1929-1932, The longest decline in modern Japanese history lasted for four years, from July, 1961 through July, 1965, a period which saw the Japanese average plunge from 1829 to 1020, a 44 drop. That time period almost overlapped the great U.S. bull market of 1962-1966. In a reversal of the above comparison, American stocks saw a 35.9 decline in 1968-1970. At almost the same time that this was going on, a 102.7 rise was taking place in Japan. Now it is, of course, possible to argue that in the 1950's and 1960's the Japanese market was a relatively small component of the global picture, whereas, as of 1988', it had become the largest in'the world, surpassing the NYSE in total market value. It is,. therefore, possible to 'assume that our own market and Japan's might move more or less synchronously. They have, indeed, done so since the middle 1970's. However, the chart clearly shows that, while direction may have been more or less the same, the magnitude of moves has sharply differed. Our own market, as we know, struggled to move above 1000 during most of the 1970's, while Japan showed a steady uptrend. Both markets bottomed in 1982, but the Japanese advance was steeper and had smaller corrections than did ours. The most recent divergence was, of course, the Nikkei's rise to a new peak following October, 1987, something our own market averages have just barely managed to accomplish. It is difficult to suggest, given technical and fundamental factors, that the Japanese bear market is not likely to continue. We would be less certain, however. of a swing of the same magnitude being exported to the United States. ANTHONY W. TABELL DELAFIELD, HARVEY, TAB ELL INC. Dow Jones Industrials 02 00) 2708.56 S & P 500 0200) 337.27 Cumulative Index (3/22/90) 4826.44 AWTebh No statement or expression of opInion or anyolher matter herein contained IS, or Islo bedeemed 10 be, directly or Indirectly, an offer orthe sohcrtatlon of an offer to buy orsel! any securrty referred to or mentioned The matter IS presented merely for the convenience 01 the subscflber While we bebeve the SOurces of our informatIOn to be rehable, 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 Informabon Delafield, Harvey, Taben Inc, as a Corporation and Its officers or employees, may now have, or may later take, pOSl\lons or trades In respect to any securities mentIOned In thiS or any future Issue, and such poSllion may be dlHerent from 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 cuslomers Independently of any statements made In thiS or 11'1 any other Issue Further information on any secuflty mentioned herem IS available on request

TABELL'S MARKET LETTER 600 ALEXANDER ROAD, CN 5209, PRINCETON, NEW JERSEY 085435209 MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (609) 9872300 March 30, 1990 There exists a body of common knowledge regarding the current bull market. One item therein is .- that-itrla-seeri-a'miirk-et of'blgstock1i-ratner-than-little,-large caps rathertJfan'smallap'i, – , , -,. listed stocks rather than OTC issues. Like much common knowledge, this bit is essentially true, but Tthhee trutathbleis aatbitrimghotre ctroamcpelsicattehde. Dow, Date DJIA S&P500 NASDAQ Val. Line S & P 500, NASDAQ Industrials, and Value Line Composite for a number of key dates during the 1987-1990 bull market. Using the common method of equating each average to 100 on the base date of October 19, 1987, it shows clearly the long-term superior performance for the Dow and S &.p, both of WhICh were, at Oct 19 1987 gDec 4 1987 Ju1 51988 Oct 91989 Nov 6 1989 Jan 2 1990 100.00 101.61 124.15 g 160.54 148.51 161.62 100.00 99.59 122.67 1i266.16 147.93 159.98 100.00 78.58 111.74 1104.60 116.88 122.72 100.00 85.52 113.80 1i12,42 120.10 123.73 Wednesday's price, up over 50 vs. a 22 rise Jan 30 1990 146.27 143.65 111.09 for the NASDAQ and 16 for the Value Line. Mar 28 1990 157.80 152.11 121.99 110.85 115.65 A closer look at the table, however, reveals an interesting fact. While the better-known averages simply tested their October levels at their December lows, the other two averages suffered drops of bear-market proportions in the two months following October 19. Measured from their highs in August, the two averages were down close to 40. The simple exercise of changing the base date Date DJIA S&P 500 NASDAQ Val.Llne in the table to December 4, 1987, results in the ———- ——- ——- ——- ——– comparison at the left. It shows that during the JDue1c 54 11998887 112020..1080 1102031070 114020..2000 113030..0070 early months of the bull market, the two averages oct 21 1988 123.59 126.68 133.12 131.45 of lesser-known stocks actually outperformed by Nov 16 1988 115.39 117.82 124.03 123.52 fairly significant amounts. The result of this NOocvt 69 . l A n 2 11996899 1990 114568..1050 159.. o6 11t.646Q60….S6…84.6.3–11146-582-..67642.18–J11454-440…. 046.364hoauvtepea.rcfto.rumallayncp.eroisY.t.lh'a-te.dthaetNo.AuStDtAheQsaImend.uasmtoruinatl s o f . – , , – , I T- – — Jan 30-1990–10.9S….—14-4.24–141.38—–129.61appreciationas…The…….Dowaftheir recent .. prlce, 8n-d—– —— Mar 28 1990 155.30 152.73 155.25 135.23 the Value Line, while trailing, is not that far behind. In mid-1988, another pattern of large-stock superiority began to develop. The two major averages went on to reach new highs in October 1988, whereas the other two failed to equal their summer tops 4 All the averages were down about the same percentage amount in October-November, but then, when the current phase of the bull market began in November 1988, a pattern of better results on the upside for the large-capitalization stocks began to emerge. Trihgehtr,esuwlhtsichof sthhiifstsarteheshobwasne indatthee ftoarbwlearadt Date DJIA S&P500 NASDAQ val.Line again. Both the Dow and S & P 500 have done Nov 16 1988 100.00 100.00 100.00 100,00 better on the upside, and yet another pattern Oct 9 1989 136.93 136.38 131.1l 124.72 has emerged, that of the NASDAQ Industrials outperforming the Value Line. This pattern has continued. Measured against its January 30 low, the Dow was, this week, up 7.88 Nov 6 1989 Jan 2 1g99g0 126.67 in 134.59 126.07 g 129.63 119.93 g 125.17 l13.68 l17.12 104.93 109.47 vs. 9.81 for the NASDAQ, and 4.33 for the Value Line. It is interesting that the reason for the better listed-stock action since late 1988 has essentially been due to larger rises on rallies. The percentage declines during short-term downswings have been about the same for all four averages. A couple of conclusions may be drawn. The first is that the recent outperformance of the over-the-counter averages vis-a-vis the Value Line may be. to a degree, another instance of the large-stock effect. The NASDAQ average, while it is, composed of a huge number of stocks, is capital weighted and. therefore, tends to reflect the action of larger issues. The Value Line average is. by contrast, computed geometrically and. therefore, gives equaL.weight to each – issue. Another conclusion is that action has been more or less normal, from a technical point of view. If one envisions the bear market as having continued to December 1987, we witnessed a typical phenomenon of secondary issues collapsing at the end of the downswing and then producing superior recovery as the next bull market began. We are now witnessing a normal, if protracted, late bull-market stage in which larger stocks normally outperform smaller ones. The final question, of course, centers around when this pattern will change. There appears. from a technical point of view. to be no indication of its doing so immediately. Based on the historical record, it would be normal for new leadership not to emerge until a cycle downswing has been completed and the next bull market begins. Dow Jones Industrials (12 00) S & P 500 (12 00) Cumulative Index (3/29/90) AWTebh 2709.68 338.88 4868.02 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL INC. 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 the solicitation of an offer to buy or selt any security referred to Of mentioned The matter IS presented merely for the convenience of the subscriber While we beheve the sources of our Informallon to be reliable, we In no way represent or guarantee 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 Dela/leld, Harvey, Tabe!! Inc, 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 Mure Issue, and such poSition may be different from any views now or hereafter expressed In this Of any other Issue Delafield, Harvey, TabeUlnc, 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 or In any other Issue Further Information on any security mentIOned herein IS available on request