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Technical Market Action A number of issues in our recoIDQended list reached new high trritory for the move on Wednesday. Included in this group werE; Borg flamer, Flintkote, International Paper, Joy Manufacturing, liQ,!!1ier, Schenley, Texas Pacific Coal & Oil, Wheeling Steel and Youngstown Sheet & Tube. The action of Youngstown Sheet & Tube was particularly impressive. At the day'S high of 74, the stock hed not only penetrated the upside of the recent 70-65 trading range but had also sharply bettered the February high of 72 1/2. Vie recently drew attention to the fact that several of the amaller steel companies had succeeded in bettering their February highs and thus indicated an uptrend. Soon after, eeling Steel also penetrated its February high. Wednesday's penetrdion by Younestown, one of the larger producers was extremely importent. It seemingly indicate;s a worthVlhile move in the hitherto lagGard steel group. The other important issues in this group are still quite a distance away from the 1947 highs. The highs of 1947 alld Ifednesday's closings on issues th.t have not yet penetrated their 1947 highs e listed beloVl llegheny Ludlum American Rolling Mills Bethlehem Steel Jones &Laughlin Republic Steel Sharon Steel u. S. Steel High 1947 48 1/2 37 1/2 99 39 30 7/8 36 79 3/'o 10/1/47 Closing 34 5/8 32 3/8 90 337/8 27 3/8 35 1/2 71 1/2 The steel issues all appear headed for higher levels. From a technical viewpoint, continue to prefer Jones &Laughlin, Sharon Steel, Wheeling Steel and Youngstown Sheet & Tube — – Reports for the first nine months of 1947 are now being issued. One of our recommended issues, Eagle Picher Company showed earnings of 3.52 for the nine month period. These eo.rninc;s were after an appropriation of 2,600,000 to inventory reserves. This amount is equal to almost 3.00 a common share. Eagle Picher Vias originally recommended for purchase in 19-16 range. The stock reached a low of 19. \lednesday's close was 24 5/8. The stock has an excellent technical pattern and indicates an eventual objective in the hih thirties. The mr.rket moved ahead again on Wednesday for the third successive day. Profit taking shaded the day's gains but the industrials closed 61 cents higher and the rails were up 16 cents. Volume has increased with 740,000 shares on Monday, 960,000 shares on Tuesday and 1,150,000 shares on Wednesday. At the intra-day highs of 178.87 and 48.96, the averages were close to the important 179.37 and 49.02 hiGhs of approximately two weeks ago. Penetre.tion of these points would be of conSiderable bullish significance and indicates a nerby testing of the July highs. EDMUND V. TABELL October 1, 1947 Closings SHIELDS & C01ANY Dow-Jones Industrials 178.10 Dow-Jones Rails 48.59 Dow-Jones 65-Stock 63.84 Th. opinions expressed in this '.tter are the personal intarprehtion of cherts by Mr. Edmund W. rabell and lire not presented as the opinions of Shield, & Comp-any.