Tabell’s Market Letter – April 24, 1947

Technical Market Action Thurstlay's, market failed to throw much light on the near term course of the market. On volume of only 620,000 shares, the industrials declined 68 cents and the rails were down 17 cents at 170.19 and 45.09. The industrials have met resistance near 172 level on each day of this week. The intra-day highs have been 171.47, 171.25, 171.71 and 171.20 from Monday through Thursday. Before penetrating this resistance, it may be necessary to close the gap at Monday's opening between 169.52 and 16858. filth current uncertainty and nervousness, expect a troding market with the illner range between 168 and 172 and the outer range between 165 and 175. For the longer term, still believe the market is in the process of forming a broad long term base pattern an that the 170-160 area is a buying range for selected issues. The lower part of the area, which has already been tested five times since the September uec1ine, may be tested again Or even penetrated slightly, but believe long term purchases on price weakness will eventually show substantial appreciation. In a recent letter, we mentioned the airlines as a group that has shown much better than market action. Another such group is the oil producing and refining shares. In most instances, they have held above their October lows and have formed substantial base patterns. The table below shows the comparison of present prices with the 1946 and 1947 range of a number of representative issues. 1947 1946 Last Sale High Low Low Barnsdall Oil Continental Oil Gulf Oil Houston Oil of Texas Ohio Oil Pacific Ilest. Oil Phillips Petroleum Plymouth Oil Pure Oil Seaboard Oil Shell Union Oil Sinclair Oil Skelly Oil Standard Oil of Calif. Standard Oil of N.J. Texas Company Texas Pac. Coal & Oil 25 5/8 57 60 ' 2, 25 55 5/8 51 21 5/8 25 7/8 27t 125st7/8 69 55 5/8 66 5/8 56 7/8 29 24f 20i 41 55 so- 57! 251 16i 24 5/8 21 25;55 5/8 528413 . 21 21 5/8 28 25 50 5/8 2 147/8 65 58 sci 70 3/8 65 60 5/4 55 5/8 50 1/2 21 51 49i 78 50 29 5/8 54 5/8 75 1/4 29i 28 7/8 ;t t59 5/8 78 68 1,4 52 5/8 21 3s5st7/8 141/8 1le9t5/8 49 1199! 25 27f 15 54 42 1/8 61 5/8 52 21 Believe issues in this brouP can be purchased in periods of general market weakness. Prefer Gulf Oil end Standard of New Jersey in higher priced group and Ohio Oil and Pure Oil in the lower priced field and Houston Oil and Texas PacifiC Coal & Oil in the More speculative field. EDMUND \1. TABELL SHIELDS & COMPANY April 24, 1947 Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 170.19 45.09 60.45 Th. opinlo…. expressed in this letter are the p.,..ona interpretation of cham Mr. Edmund W. Tebell end ere not preUinteci as the opinions of Shield. & Comp.ny. '- , )