Tabell’s Market Letter – May 10, 1945
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TECHNICAL MARKET ACTION On volume of 1,510,000 shares, market declined sharply on Thursday with the industrial average down 2.07 points at 163.17 and the rail average down 81 cents at 54.70. Believe this action is only normal and will, after somewhat lower prices, eventually place the market in a buying range. On April 12th, when the averages were around 158, the writer suggested the area as the indicated rally objective. The high so far, has been 167.25. The comparable area on the New York Times average was the 117 1/2 – 119 1/2 range. The high was 119.75. The rail average which indicated 55-56, reached a high of 57.48. At Thursday's low of 162.68, the Dow…Jones industrial average was fairly close to the top of the indicated decline area of 161-159. The New York Times average on which exact figures are not available at the moment, must also be fairly close to 115-114 objective. The writer continues to believe that the present decline is a much needed technical correction of the sharp 14 point rise from the March 10lVs. After the correction is completed, continue to expect new highs. There is no indication that either 'the. intermediate trend or major trend is other than up In anticipation of the decline, the writer has advised taking profits on a number of recommended issues. The record on completed transactions since the first of the year is – Number of trades 47 Number of Gains 47 Number of Losses 0 Total Points Profit 304 1/4 Total Points Losses Would use further weakness to reaccumulate issues sold and add new commitments to the recommended list. The following are recommended for purchase if avail- able in the buying range noted. 1945 Thursday's High Low Buying Range American Cable & Radio American Bank Note American Viscose Atchison, Topeka &Santa Fe Bethlehem Steel Bohn Aluminum Briggs Manufacturing Celanese Cluett Peabody Federated Department Stores Florence Stove General Railway Signal Illinois Central International Minerals & Chem. Lima Locomotive Montgocery Ward Nehi Corporation Newport Industries Philco Corporation U. S. Industrial Chemical Wheeling Steel 13 3/8 28 1/2 53 1/4 98 3/4 81 3/4 61 3/8 433/4 52 1/2 44 1/2 35 3/4 47 37 37 5/8 24 1/4 59 1/8 621/2 18 1/2 25 40 491/4 40 1/2 11 3/8 27 1/2 53 91 1/2 75 3/8 55 1/4 40 5/8 47 1/2 42 1/4 34 1/4 . 46 1/4 33 32 1/4 22 1/4 54 59 1/8 17 3/4 23 1/2 36 5/8 46 3/4 36 11 1/2 – 11 26 – 25 51 – 50 .. – 90 – 87 75 – 73 54 – 52 40 – 39 45 – 44 41 – 40 33 – 32 43 – 42 32 – 30 31 – 30 22 – 51 – 48 56 – 54 17 – 16 22 – 2l 36 – 35,….. 45 – 43 35 – 33 EDMUND W. TABELL SHIELDS & COMPANY May 10, 1945 Closing Don-Jones Industrials Dow-Jones Rails The in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.