December 2, 1944 TECHNICAL MARKET ACTION This letter, the first of n series to be issued pt short intervals, will attempt to forecast the price trends of the general market averages, and, on occasion, will or sales of individual securities, either for term holding or for short term trending. The opinions expressed will be based not on the fundamental or statistical outlook for the securities or commodities mentioned, but simply on the writer's interpretation of their technical market action, as shown on charts and graphs of the market averages and individual securities. Summarized briefly below is the technical outlook for the major, intermediate, and minor trend of the market. The major trend of the market is favorable. Over the longer term, substantially higher levels are indicated for both the industrial and ruil averages. The rail average, from a technical ViewpoInt, is in 11 definite up– trend, end 11 price level approximately in the 65-70 zone of the Dow-Jones rlil average (now 43) is indicated. The industrial average has not, as yet, definitely confirmed tpe uptrend, but the action of individual industrial issues tends ., the belief that such II confirmation will eventually occur. The intermediate tnnd of the market is '1'he first phase of started in April, 1942, nd ended in July, 1943. During thnt fifteen.month period, the Dow-Jones industrial average mUied approximately 53 points, from 93 to 146. After a 16 point decline to 130, the second phase of the bull market skrtod in November, 1943, has so fe.r reached a high of approximately 151 in July, 1944. The present level is approximately 147 1/2. 'bether or not this second phese is comph.ted is net cleD.r. By passing the July high last week, the rail Ilverllge re-confirmed the uptrend ,.nd tions point to the 45 level before another resting period. The industrial c.vern!;e, h01vever, htls been une.bIe to penetrate nut. only the July high of 150.88, but Dlso the August high of 149.;' 'n the October hl eh of 149.20. Penetration of these highs would indicr.te un extension of the second phase to ret least the 153-155 level for the industrial The dOl.nside point to be 'Ililtched is the September lew of approximately 142 1/2. Penetrltion of this low Viould indicate e further reaction to the 138-137 e.rea in the industrials. Briefly, the outlook for the next four to six months envisions cOhlparatively nnrrol'l trading runge, bounded by the extremes of 155 md 137 on the industrial p.vero.ge, '.lth6ugh there is no indication, as yet, that these extremes will be reached. During such a period of uncertain price fluctuations, better profit possibilities should be found in special situations rather then the general or market leaders. The minor trend, as measurecl b'J the aaily or even weekly fluctuations of the is always difficult to interpret technically, und is, in the writer's opinion, the least profikble to foll)I. It will be mentioned, however, in these letters and in speciul releases. At moment, the minor trend in the rail average is up. There is no definite trend in the industrial average. For the past six weeks, this average has fluctuated in narrow area between roughly 149 and 145. Until these points penetrated, there is no indication of the direction of the next minor move in the average. Here c.g!in, from a trading viewpoint, speci,,,l situations should outp.oe the market leaders. EDMUND W. TABELL SHIFLDS & COMPANY The opinions expressed in this letter are the personal interpretation of charts by Edmund W. Tabell and are not presented as the opinions of Shields & Company

December 6, 1944 TECHNICAL MARKET ACTION Volume was heavy for the first three of the week and prices continued to show a rising tendency. The average reached a new high of 44 1/2 on Tuesday, but the advance in the industrial average was stopped at the approximate level of the August high (149.2S) und the October high (149.20). This Tuesday's high was 149.23. Ability to penetrate these hiCh8 would not only indicate a minor uptrend in the industrial average, but would also greatly strengthen the probabilities that the July high of 150.B would be passed. If that eventuality occurred The rise should continue to the 153-155 area. However, until such a penetration takes place, a cautious trading attitude seems advisable. Would expect a resting period for the rail average in the 45-46 area. In a letter dated September 18th, whc.l the averages were near the late summer lows, the; writer recommended a group of twenty-five medium priced stocks. Those issues were recommended because the individual technical patterns indicated eventual substantial price appreciation over the intermediate term. Continued retention of the group is advised notwithstanding the fact that sever of the issues have shown wide gains. The list is reprinted below. Stock Alleghany Ludlum, American Bank Note, American Chain, Atlantic Coast Line, Black & Decker, California Packing, Campbell Wyant, Columbia Pictures, Commercial Solvents, Delaware & Hudson, Gen. Precision Equip, Great Northern Ry. Pf, Hercules Motors, Illinois Central, Interstate Dept. Stores, Lima Locomotive, Liquid Carbonic, Motor Wheel, Newport Industries, Pere Marquette Pf, A. O. Smith, Southern Pacific, Western Union A, Worthington Pump, Youngstown Sheet & Tube; Anaconda Wire & Cable (36 1/2) and Southern Railway (31 3/B) also have attractive technical patterns and are added herewith to the list. Barber Asphalt (29 3/8) would also appear attractive on ;, return to the 27-28 area. Advice to hold the issues mentioned in the above list are based on longer term bullish indications and does not necessarily apply to shorter term trading turns. EDMUND W> TABELL SHIELDS & COMPANY The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company

December 9, 1944 TECHNICAL MARKET ACTION Since the last letter, the industrial averages penetrated not only the August-October resistance, but also the bull market high of July. This penetration occurred not only in the Dow-Jones industrial average, but also in the New York Times combined fifty-stock average and in the New York Tribune one hundred stock average. This penetration re-affirms the intermediate uptrend and signifies in the writer's opinion eventual extension of the advance to at least the 153-155 area. However, Saturday's advance was the seventh advance in a like number of trading days. It would seem probable that there may be some consolidation of the rise before the advance is immediately resumed. The rail average is now in the 45-46 area and here again 8. short resting period may take place. (A number of individual issues also penetrated resistance levels during past few days. One attractive technical situation, in the opinion, is Pressed Steel Car (now about 17 1/2). Technically, this issue is now in a long term upturn and considerably higher prices are eventually indicated from he chart pattern. Purchase of the issue is advised. Another stock with a technical formation is Cities Service. At present levels of 14 1/2, the stock is nearer to the year's low (121/2) than to the year's high of 17 3/4. The formation suggests accumulation, and while no immediate move is vindicated, the is favorable. Still another stock with in possibilities is Reynolds Metals. The stock is now in the 15-16 resistance area. Ability to penetrate this area would indicate a long term uptrend. The steel stocks also suggest the possibility of being in an accumulation area. Would confine purchases e.t the moment to the market leaders, Bethlehem Steel, now 64 1/2, and U. S. Steel, now 60. it present levels these two issues are in the middle of relatively narrow trading ranges which have persisted for over two years. There are support levels fairly close to the market (55 in U. S. Steel and 59 in Bethlehem) thp.t should hold in any minor market correction. While these two stocks have not yet definitely indicated an uptrend, purchase would seem warranted at present levels, even though some patience may be required. / In the higher priced group, the technical pattern on Allied Chemical suggests the possible imminence of a fairly sizeable move. This possibility would be confirmed if Allied Chemical were able to penetrate resistance around the 152 area. j, rally to 153 would suggest the start of a fairly sizeable move. The stock for a high priced issue has been in an extremely narrow trading range of seven points for a considerable period of time. Present price is approximately 152. EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in this letter in the personal interpretation charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

December 16, 1944 TECHNICAL MARKET ACTION The market hesitated on Saturday, but both the industrial and rail averages have reached new highs and the utility average joined the procession by penetrating the previous 1944 peak. The advance over the past two weeks has been rapid, particularly in the rails, and it is probable that we will have occasional periods of irregularity at this stage of the market caused by profit taking and switching. However, the work shol7s no indication, as yet, of an intermediate top, even though the industrial average has almost reached the near term indication of 153-156 and the rail average has passed the expected resting spot of 45-46. In the letter of December 9th, the writer expressed his op1n10n that the steel stocks suggested the possibility of being in an accumulation area. He suggested purchase of the two market leaders, Bethlehem Steel and U. S. Steel, even though some patience may be required before an upward move was started. That opinion is again reiterated today with the addition of a number of other issues in the steel group. The metal and mining stocks also appear to be in somewhat the same technical position as the steels, with long relatively narrow trading ranges extending back Over two years or more. Here again, no definite indication of an uptrend has been signalled, but the possible accumulation area is wide, and support points arc not too far below the market. The greatest danger in purchasing the steels and metals seems to be that the timing may be wrong and that purchases may have to be held for a period of time before the advance starts. In the steel group, in addition to Bethlehem and U. S. Steel, Jones & Laughlin, Republic Steel and Youngstown Sheet & lube also have attractive patterns. In the metal and mining group, Anaconda, Eagle Picher and Kennecott seem to be in the most favorable position. EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in this letter are in the personal interpretation of charts by Mr. Edmund W. Tabell and are not pr8sented as the opinions of Shields & Company.

December 20, 1944 TECHNICAL MARKET ACTION Wednesday's market, during the noon hour, experienced a sharp and rapid shakeout on heavy volume with prices down one to three points. Losses Here partially regained by the close. After more than two .7eeks of rather rapid advill1ce, with only nominal corrections during that period, the short c8rm technical position of the market was weakened and vulnerable to unexpected news of the German drive. Would not place other than minor significru1ce to Wednesday's action. As yet, the market shows no definite indication of having reached an intermediate top. However, it must be remembered that Let Saturday's intraday high of 153, the industrial average had reached the lower level of the anticipated 153-156 objective and the rail average, although 'in a long term uptrend, has advanced approximately 15 during the past month. Thus, while no intermediate term sell signal has yet been given, a certain of caution should be exercised at this stage of the market. If the advance is to be resumed, it would seem that some of the laggard groups should participate to a greater extent than hitherto. The Dow-Jones industrial average is heavily weighted with steels, chemicals, oils and mining stocks. As yet these groups have had only minor advances. It would seem to be a difficult task for the industrial average to reach the 156 level or higher without the help of these groups. On the other hand, in the event of a further decline, caused by additional surprise news, these issues should not be as as those that have already had sharp advances. Thus, it seems that these laggard issues should be the buys under present conditions. The steel group has been reviewed in previous letters. Bethlehem Steel, Jones & Laughlin, Republic Steel, U. S. Steel and Youngstown Sheet & Tube all have potentially favorable technical formations. Anaconda, Eagle Picher and Kennecott have been mentioned in the metal and mining group. In the chemical group, Allied Chemical, now 156, was recommended at 153. Dow Chemical appears attractive in the 115-120 area. Cities Service has been recommended in oil group. Other laggard issues with promising technical patterns include Allis Chalmers and American Car & Foundry, also Western Union A. EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in this letter are in the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

December 26, 1944 TECHNICAL MARKET ACTION For the time being, the market seems to have lost; its upside momentum. The high for the move on the industrial average was reached at 153.00 on Saturday, December 16th. Since that time, the industrials have been unable to again approach that level and each successive dip has carried a shade lower with the low of 149.88 reached last Thursday, December 21st, being exceeded by today's low of 149.41. However, there has been Poe signal, as yet, that the intermediate trend has changed and, subject to some possible further correction, the trend still must be considered as up. It would appear that a fairly strong support level should be met in the 149.25 zone. This zone is top of the resistance area that halted the advance on several occasions since July. Normally, it could be expected to now offer resistance to any further decline. At today's close of 149.66, the average is not far army from this expected support level. The rails, by contrast, have succeeded in holding close to the highs. The December 20th intraday high of 48.41 was passed today at 48.54, even though the close was below the high closing of 48.16 reached on December 23rd. Individual rail issues have acted even better than the averages. The writer's recommended list contains seven rail issues, all with substantial profits. Retention of these issues is still advised. The list follows. Atlantic Coast Line Delavarc & Hudson Great Northern Rwy. pfd. Illinois Central Pere Marquette pfd. Southern Pacific Southern Railway Recommended At 36 3/8 30 1/4 37 1/2 15 3/8 44 1/2 27 1/4 31 3/8 Last Sale 5336 13//44 47 1/4 22 3/8 62 1/2 41 3/8 33 7/8 Obviously, after the sharp rise which has taken place in this group, some technical correction could occur at any time. There is some resistance at approximately the 50 level, but to arrive at this objective one must go back to 1937 The writer would rather rely on the indications of the base pattern which suggests an eventual objective of 65-70 over the longer term. Individual issues 'indicate even larger appreciation possibilities, with Illinois Central shoving the greatest possible percentage appreciation of the seven issues. On further strength; profits might be taken on Atlantic Coast Line which now shows almost 17 points gain. The near term objective in this issue is roughly in the 54-60 area. Proceeds from the sale of this issue could be transferred to Illinois Central on weak spots. At the risk of being repetitious, the writer again draws your attention to the steel and copper group. These issues have done nothing marketwise since they were mentioned over a week ago. However, the basic patterns are favorable and eventually, if the average is to move ahead, these two groups Should participate. The greatest risk is the possibility of poor timing. There are support levels in these issues not too far below the market that should hold in the event of a general market dip. .There are few issues that have been subject to year end tax selling. Western' Union A, which at today's close of 43 1/2 is 9 7/8 points below the 1944 high of 53 3/8 and 2 1/2 points above the 1944 low of 41, may be one of the group. Here again, there is a rather firm support level not too far below present prices and the technical pattern suggests the possibility of a rebound after selling pressure is released. EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in this letter are in the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

December 29, 1944 TECHNICAL MARKET ACTION After reacting fractionally below the lower limits of the support level at 149.25 – 148.50 in the Dow-Jones industrial average mentioned in the last letter, the market reversed itself sharply and resumed the advance. At Friday's close of 152.00, the industrials have rallied 4.07 points from Wednesday's low of 147.93. For the first time, the action of the industrials compared favorably with that of the rails which have rallied 1.72 points from Wednesday's low of 46.58. The industrials are again close to the 152.53 closing high and the 153.00 intraday high, both reached on 16th. The' rails again reached n new closing high. Regardless of the sharpness of the advance, the market has not yet signalled a top. However, would prefer a nearby consolidating phase rather than an immediate straight line advance. A further sharp rally would impair the technical pattern. This letter has not advised the sale of any recommended issues since purchases were first made near the September lows. Continued retention of recommended issues is advised. The action of the steels and coppers over the past two days has been the best in quite a period of time. Still consider these two groups behind the market. Would add Carpenter Steel (around 33), a specialty steel issue, to the recommended list. Another stock with a favorable chart formation is Colorado Fuel & Iron (around 25). Purchase is recommended. Two lower priced issues that seem behind the market are Budd Manufacturing (at 10 1/2) 'and Radio-Keith-Orpheum (at 9). Present prices compare with a high of 12 1/2 on Budd and 10 3/8 on R-K-O. Their technical patterns seem to indicate that both issues, which have done little marketwise recently, are in consolidating phases. A nearby breakout is possible in both issues. EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in this letter are in the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company

January 4, 1945 TECHNICAL MARKET ACTION The market reached new high territory on Thursday with all three averages hitting peak prices for the move. The advance, which started from last Wednesday's lows, has been paced by the two laggard groups, the steels and the coppers. The momentum of the rise has been extremely rapid with the industrial average showing a gain of 7.07 points in last six trading days, while the rails have advanced 3.01 points in a like period. The writer, in the past, has used a technical market indicator that has been extremely accurate in forecasting buying and selling points in the intermediate market swings. Today this indicator signalled a sell indication, the first such signal in a long time. However, in the past the signals have usually been a bit premature and have occurred before the actual high or low was reached. In addition, it must be borne in-mind thn.t it is a purely mechanical device and the fact that it has worked well in the past is no indication of its future performance. However, there are other indications that the market may be temporarily near a top. The various market averages built up base formations in the consolidating period of late 1943 and early 1944. The base count indications set up during that period have in most cases been reached. For example, the count on the Dow-Jones industrial average was 153-156. This compares today's high of 155. The count on the New York Times combined average indicates 105-109. Present prices are around 108. While the rail average indicates a long term 65-70, the advance has been rapid in the past month and a technical correction may be overdue. While the present, with its many diverse trends, may be an unfortunate time to be thinking in terms of a market average rather than in terms of individual stocks, the weight of technical evidence suggests that a selling attitude should now be taken with the ultimate objective of assuming a sideline trading position in the hope of reacquiring selected issues on price dips. This advice is given on a shorter term basis and signifies no change in the writer's long term bullish opinion. Suggest lightening trading accounts to a 50 liquid position. The writer has recommended 53 issues for intermediate term trading purposes. Profittaking is advised on the 28 issues enumerated below. The remaining 25 issues are to be retained. Their formations suggest either the possibility of further appreciated or nearby support levels. It may take a week or two before the market completes its top formation. Such a period is usually accompanied by considerable irregularity and wide price gyrations in individual issues. Strength in issues held should be used for liquidation. The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

TECHNICAL MARKET ACTION January 8, 1945 The market, after a two day reaction, rallied strongly today led by the rails, oils, sugars, steels and distilling issues. The decisively penetrated last week's high of 50.21 to reach a high of 50.95 today, while the industrials just about equalled last week's high of 155.02 by reaching 155.04 today. As the writer told you in his letter of last Thursday, the market may spend a week or two in this area with individual issues having wide price gyrations. The really important point on the industrial average is the 158.98 high which marked the 1938-1939 top of the industrials. If that high is passed, the industrial average will be in the same position as the rail average when; it passed its comparable 1938-1939 high of 36.70 in July of 1943. At that point, the rails indicated a long term uptrend and an eventual indication to 65-70. If industrials penetrate the 1938-1939 high of 158.98, they also would signal a long term uptrend and an eventual price objective in the 230-240 range. However, until the penetration occurs, a certain amount of caution is necessary. The momentum of the advance has been rapid and the price objectives outlined by the accumulation bases have just about been reached. It would seem a prudent policy to lighten trading accounts on strength with the objective of repurchasing on price dips or on as of the 158.98 high. Last week, the advised taking trading profits on 28 of the 52 recommended issues -and the retention of the remaining 24 issues, thus assuming a 50 liquid trading position. At Thursday's close, the 28 issues sold, all showed a profit to total 182 7/8 points, or an average of 6 1/2 points on each issue. The list of the 24 remaining issues held is printed below. Retention is advised. Price Recommended Monday's Close Alleghany Ludlum Allied Stores American Chain & Cable Anaconda Copper Bethlehem Steel Bucyrus Erie Budd Manufacturing California Campbell, Wyant Carpenter Steel Colorado Fuel &Iron Columbia Pictures Engle Picher Lead Engineers Public S Interstate Dept. Stores Jones & Laughlin Kennecott Copper Poor & Co. B Pressed Steel Car Radio-Keith-Orpheum Republic Steel U. S. Steel Western Union A Youngstown Sheet & Tube 27 20 7/8 25 28 1/4 6/. 3/4 13 1/2 10 1/2 27 3/4 19 3/ 33 24 5/8 18 1/2 .14 15 7/8 17 1/2 26 3/4 36 3/8 12 3/4 17 1/2 9 19 5/8 6C 44 3/4 37 3/4 29 1/1. 21 7/8 27 3/8 30 7/8 70 13 3/8 10 1/2 28 3/8 21 1/4 33 1/4 24 3/4 2l 1/8 14 1/4 16 1/2 18 3/4 29 5/8 38 1/4 13 17 3/4 9 1/4 21 62 1/2, 45 1/2 42 EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in this letter are in the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

January 12, 1945 TECHNICAL MARKET ACTION , While the market moved ahead into new high territory during the week, it seems to be running into increased resistance. 'For example, the rise from the December 27th 101'1 of 147.93 to the January 4th high of 155.00, a rise of 7.07 paints, was accomplished in six trading days (including one Saturday) with an average daily gain of 1.18 points. After a two day dip to 153.19, the four day rally carried to a high of 156.68 on Thursday, a rise of 2.99 points in four trading days, or an average daily gain of .73. Furthermore, the volume has increased on the latest advance with a turnover of over 6,500,000 shares from Tuesday to Thursday on an advance of only one point for the three days, or an average advance of .33 on an average turnover of approximately 2,260,000 shares. The rails also seemed to have lost e. bit of their momentum with the rail average reaching their intra-day high of 51.35 on Tuesday – two days before the industrials reached their high on Thursday. These two indications, together with the fact that the base indications on most averages (though not necessarily on individual stocks) have been about reached, leads the writer to believe that the greater part of the short term advance already been seen. '1ihile the market, especially special situations, may continue to advance for a short period, still advise lightening trading commitments to a 50 liquid position. EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in this are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.