Tabell’s Market Letter – February 21, 1947
View Text Version (OCR)
Technical Market Action The market moved higher on Friday r.ith the industrial average gaining 1.52 at 182.26 and the rails up 54 cents at 51.64. The day's highs were 182.76 and 51.91. Volume totalled 860,000 shares. The action of the market is encouraging and believe the technical correction of the recent upswing has been completed aud'the market is in a position to move ahea& into new high territory. In yesterday's letter, we listed ten stocks whose technical patterns indicate the 'possibility of substantially higher price levels over the inter- mediate term. Six of these issues, namely Alleghany pfd, American & Foreign Power 2nd pfd., Crane i Co., Electric Power & light, Illinois Cent.ral and Inter- national 'inerals & Chemical, were reviewed in yesterday's letter. The remain- ing four are covered below. ' Mead Corp. – Closed at 22 1/2. 1946 high was 50 5/8. Its FebruaryJuly distribution zone indicated a decline to the 19-17 level and the stock vms recommended for purchase in that zone in our letter of September 11th. The low was 18. An upside breakout lVould occur at 25 and indicate an intermediate term objective of 59. Seaboard Airline – Closed at 25 1/2. 1946 high was 57 5/8. The issue recently broke out of a wide base pattern at 25. Its technical formation suggests an intermediate objective of 41. Union Bag &Paper – Closed at 52 1/2. 1946 high was 59. The year's low, reached early in 1946, Vias 25. Stock has held in a broad trading range for the last four months between,roughly, 28 and 50 and only recently broke out of this base area. Its puttern suggests an intermediate term rally to 51-55. flhee1ing Steel – Closed at 45 5/8. Its 1946 high was 62 1/8. Its top distribution area indicated decline to the 58-52 area. The low reached was 35 1/2. Its recent rally to 44 indicates an intermediate uptrend to the 56-67 area. February 21, 1947 EDMUND IV. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-J ones Rails Dow-Jones 65-Stock 182.26 51.64 66.02 ! Th. opinions exprened in this letter ere the penonal interpretation of cham by Mr. Edmund W. Tebell end are not presented es the opinions of Shields I Company.