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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.