Tabell’s Market Letter – January 09, 1947

Technical Market Action The market, on Thursday, again tried to break out of the line formation in which it has held since the coili. strike settlement. This area, between roughly 173 and 179, has been the, , )– ….,-w.' rge of the averages for the last twenty-six trading days. During this peri,particularly during the last few days, volume has been relatively small. Thursday's volume was only 710,000 shares with fractional price changes. Inability of the market to move ahead seems due to buying inertia rather than selling pressure; However, based on the pattern of individual issues, it would seem probable that the next move of importance should be on the upside with a continuation of selective intermediate uptrend. The steel stocks, as a group, present extremely interesting technical patterns. In the majority of instances they have reached their downside objectives as indicated by their February-July distribution zone. This downSide objective is noted in thesecond column below. After reaching their lows in the September-October decline, they have built tip sizeable supposed base patterns that would indicate, if the price in the third column is reached, an intermediate rally of sizeable proportions. The objectives of a number of issues in the group are listed below. Believe the group offers excellent intermediate term profit possibilities, 1946 DownSide High Object;i.ve Allegheny Ludlum 61 1/8 35 – 33 American Rolling Mills 42 3/8 32 – 26 Bethlehem Steel 114 3/4 88 – 81 Granite City Steel 27 1/4 10 Inland Steel 45 5/S 33 Jones &Laughlin 53 7/8 33 – 31 Lukens Steel 3C 3/4 15-13 Midland Steel 62 1/2 34-29 Pittsburgh Steel 22 1/2 8 Republic Steel 40 7/8 24 Sharon Steel 40 3/8 25-16 U. S. Steel 97 3/8 67-64 Wheeling Steel 62 1/2 38-32 Youngstown Sheet & T 3 7/8 60-55 Reached 38 29 5/8 85 5/8 12 1/2 33 1/2 31 5/8 14 32 9 5/8 24 7/8 23 1/4 65 l/S 36 1/8 57 1/2 Upside Rally Last Penetration Objective Sale 48 67 45 1/4 37 45 – 51 35 1/2 99 119 93 3/8 16 21 – 24 135/8 41 50 – 53 40 39 48-57 35 19 23 16 42 54-58 38 13 18 11 30 42 28 1/4 34 45 32 1/4 76 9 72 1/2 44 56-63 40 69 89 67 3/8 January 9, 1947 Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock EDMUND W. TfJlELL SHIELDS & COMPANY 178.43 50.48 64.71 , The opinions expressed in this are the personal interpretation of cherts by Mr. Edmund W. Tebel! end ate not as the opinions of Shields & Company.