Tabell’s Market Letter – November 25, 1946
View Text Version (OCR)
Technical Market Action Possibly after a two weeks' sojourn in the sunshine of California, one's thoughts are colored by the climate and the growth possibilities of that marvelous section of our country. However, even in a drab November New York, one cannot help but be impressed by the action of the market. The averages continue to hold in the trading range between roughly 175 and 160. This range has held for eleven weeks and during that period the turnover has been around 100 million shares. This compares with a 16 million share volume during the break from late August to early September. The longer the averages hold in this area, the the base formation becomes. This in turn indicates, if the upside of the range is penetrated, even higher price objectives for the intermediate term rally. On the New York Herald-Tribune average (now around 117) the rally objective is raised to 129-132 from 126-129 if the 122 level is reached. Individual issues also are showing favorable technical patterns. The issues that already have reached their downside objectives are holding and enlarging their base patterns while the issues that indicated lower prices are gradually working down to their objectives. A perusal of the master list of October 14th shows the vast majority have at least reached the upper part of the downside objectives. Continue to recommend, on soft spots, the purchase of the twenty-five issues recently listed. For the nearer term, the rails present possibilities. November 25, 1946 EDMUND W. TABELL SHIELDS & COMPANY flosing Industrials Dow-Jones Rails Dow-Jones 65-Stock 165.23 47.89 60.30 The opinions expressed in this letter ore the personal interpretation of chem by Mr. Edmund W. Tabell end ere not presented as the opinions of Shields & Company,