Technical Market Action Mondays market was reactionary with all three averages closing lower on the day. Volume, at 1,660,000 shares, was small when compared with recent sessions. There was a slightly firmer tone at the close. A glance at the technical formations of individual issues reveals a rather confusing picture at the moment. 11hile some patterns indicate still higher prices, others have reached intermediate objectives end, in 0. few isolated cases, are in an intermediate downtrend. The general pattern suggests the possibility that we are in the early or middle stage of an intermediate, distributional zone. If this is true, it appears that the pattern is not yet complete and that, While many issues may have already reached their highs, some further time may be spent in backing and filling in other issues while still others may move ahead. At this stage of the market, there are undoubtedly opportunities for traders to take of the sharp gyrations of individual issues. However, advise an increasingly cautious attitude and the taking of profits on strength. This letter has advised a gradual lightening of intermediate trading accounts on strength. This advice continues. Would hold recommended issues until individual intermediate objectives noted in recent letters are reached. Keep funds from profit taking sales liquid Last week's of trades of recommended issues completed since the first of year a error. The correct tabulation follows Number of trades Gains Losses Points Profit 10 10 o 107 1/2 For a speculative turn, attention is called to E. W. Bliss on the New York Curb. After reaching a high of 36 1/8 in June, the stock reacted to the full figure point of 25 and since then has held in n bounded roughly by 30 and 26. An upside penetration, if it occurs, would indicate an extremely bullish pattern. Would buy only if 31 is reached. February 4, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails 205.84 67.59 The opinions expressed in this letter are the personal interpretation of chart, by Mr. Edmund W. Tabell end ere not presented a, the opinions of Shields & Company.

Technical Market Action Weakness in the distilling issues at the opening of Thursday's market caused irregularity prices in the general list. The rails were only fractionally lower. The industrials regained a portion of the decline but closed 39 cents lower. Still visualize the possibility that the market is in the process of forming an intermediate distribution area. However, the pattern does not, as yet, appear to be complete. Would expect further backing and filling in a comparatively restricted area, ;s f1cr as the averages are concerned., with special situations and groups highlighted. Would expect selective strength to be followed by further additions to technically unfavorable groups which now include the airlines, liquors, and a number of the tobacco issues. These groups appear to be in an intermediate downtrend. I Believe the rails should be active participants on any further selective strength over the nearer Individual issues in this group have not reached their intermediate price objectives and Thursday's firmness in the face of general market weakness is encouraging. '4.In the rail group, particularly like AIleghany Corp fd. The issue was originally recommended at 57 and recently ranched a high of 69 1 4. Thursday's close was Technical action continues bullish and believe the stock will sell higher over the nearer term. Continue to advise profit taking on recommended issues ns intermediate objective levels arc reached. February 7, 1946 EDMUND W. TABELL SHIELDS & CC'I.PIINY Closing Dow-Jones Industrials Dow-Jones Rails 205.09 67. The opinions expressed in this letter are the personal interpretation of charts by Edmund W. Tabell and are not presented the opinions of Shields & Company.

Technical Market Action After early firmness, Monday' s market worked lower in the final hour of trading and closed 1.16 points off on the industrials and 1.09 on the rail average. Volume totalled 1,440,000 shares. It wins the fifth successive trading day on the downside. From a technical viewpoint, there are two possible developments at this stage of the market. The first is a continuation of the decline to the 197-195 area. At the moment, the tops formed by the industrial average indicate no greater decline than the above mentioned figure. This would be a correction of approximately 5 Which has been just about the size of most corrective reactions in recent months. The second possibility is a halting of the decline around the 201-200 area, followed by a rally and a broadening of the top. Am inclined to favor this latter possibility as it-is in line with the thought that the market may be in the process of forming an intermediate distributional area. So far, the top area formed indicates no more than 197-195. More backing and filling would be required to materially broaden the top. From the foregoing it would seem that the market could be bought for c trading turn between approximately present levels and 197. However, as far as the intermediate term trend is concerned, would exercise extreme caution and employ only a portion of available funds at this stage of the market. Recommended issues should be retained but liquidated on strength. EDMUND W. TABELL February 11, 1946 SHIELDS & COMPJ.NY Dow-Jones Industrials 201.14 Dow-Jones Rails 65.11 The opinions pressed In this letter are the personal interpretation of charts by Edmund W. Tabell end ere not presented .s the opinions of Shields & Company.

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Technical Market Action Monday's market was off sharply with the industrial average closing 2.76 points lower the losing 1.58. The day's losses were sharper then any of the declines witnessed early last week. At Mondays close, the averages had lost a good portion of the Thursday to Saturday rally which totalled 5.67 points in the industrials and 2.14 in the rails. The erratic market action of the pa.st week, with sharp and rapid declines followed by equally sharp end rapid recoveries, is typical of intermediate distributional markets. The question is whether the market is ready to decline immediately or Whether there must be additional backing and filling to further broaden out the top before the real decline ensues. Am more inclined to believe the latter course will be followed. Monday's decline could easily further. The first support level is the 197.65 10Vi of last week. If this point were penetrated it would Signal rn1 intermediate downtrend us last weeks high of 205.35 did not penetrate the 207.24 high reached earlier in the month. However, even if this occurred, would -hot expect the averages to move much below that level at this time. Top count indications point to 196-193 us a possible objective. In addition, the 195-190 area. is an extremely strong support zone which shoulc1 hold up at lea.st against the first downside In other words, would expect possibly some further weakness into the 200-195 area followed by a. rally. Would continue to liquidate intermediate term holdings on strength. February 18, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrial- 201.63 Dow-Jones Rails 65.37 The opinions expressed in this letter ere the personal interpretation of chart by Mr. Edmund W. Tabell and are not presented as the opinion of Shields & Company

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