Tabell’s Market Letter – August 15, 1947

Technical Market Action Westinghouse Airbrake was recommended for purchase in the 27-25 buying range in our letter of September 12th. The October low was 26 1/2. Since that time, the stock has built up a broad accumulation area in the 27-35 range which was recently penetrated on the upside. Fridays close was 36 1/4. The stocks technical pattern suggests a rise to the 52-56 area. Purchase is advised. Westinghouse Electric was recommended for purchase in the 23-21 buying range in our letter of September 19th. The October low was 21 1/8. Westinghouse was again recommended at 25 5/8 in our letter of May 28th. The stock has penetrated the long 22-28 accumulation range and an objective of 40–45 is indicated. At Fridays close of 28 5/8, the stock is almost two points below the recent high af 30 1/2 and appears to be an attractive purchase. Wheeling Steel was recommended for purchase at 43 3/8 in our letter of February 21st. Fridays close was 42 1/4. This issue has been a volatile market performer with wide swings in both directions. A penetration of the February high of 44 1/2 would indicate, a return to the 1946 high of 62 1/2, followed by evenigher levels. A recent report showed earnings of 8.57 a common share for the first six months of 1947. Purchase is advised for possible wide price appreciation. Youggstown Sheet & Tube was advised for purchase in the 62-60 buying range in our letter of September 12th. The October low was 57 1/2. Yongstown rallied back to 72 1/2 in the February high. The recent high was 70 and Fridays close was 68 7/8. Youngstown. has one of the better technical patterns in the higher priced steel group with a tremendous potential base area in the 54-72 ran9. An upside penetration would indicate a level well above 100. Earnings for the first six months of 1947 were 8.14 a common share. Purchase is advised. Would also suggest switching out of Bethlehem Steel into Youngstown. The action of Fridays market appears to confirm the opinion expressed in Thursdays letter that the technical correction was completed and the uptrend would shortly be resumed, The averages closed up 1.17 and 62 on Friday with an increaseof volume to 880,000 shares. Expect a continuation of the uptrend to an objective of 210-215 for the intermediate term. Such an advance will of course be punctuated by minor technical corrections. EDMUND W..TABELL August 15, 1947 SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65 stock Avg. 181.04 49.41 64.82 Th. opinions preaed in this letter are the personal interpretation of cham by ,. Edmund W. Tabell and .r. not preseMed .1 the opinion. of Shield. & ComlNny.