Tabell’s Market Letter – October 17, 1947
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Technical Market Action There arc sixty-eirht issues in eur recemmended list. Mest ef these 5Cl)KS were dvised for purchase in the 170-160 area ef the Dew-Jenes industrial wm, an area fihich, fer ever tV/elve menths, 1e have considered as a longer buying area. Others wert advised at various times when their technical n-cns appeared attractive. Of thesG sixty-eight issues, ferty-one have given HlllH'lDUW.D1.1J.J. market siVlals. That is, they have penetrated their long trading areas on the upside by bettring their previous highs and indicate longer uptrends. -Most of these issues have shown substantial price appreciatien we have been stressing these issues in recent bulletins and published a list them in eur letter of octo,er 8th. However, it might be ,,;ise at this time to take a gle.llce at the other twent,r-seven issues in our recemmended list. These ssues have petentially favorable technical patterns. They have been in long trading ranges and, at their lows, had reached the long term downside indicators outlined by their early 1946 distributional patterns. In other werds, they have the same potential patterns as e forty-ene faveraple issues enly they have not proven themselves. They are listed belov;-, tegether with their trading range ef the past year and the upside penetration point and tbe'last sale. It will be neted that a great many ere very close to an upside confirmation while others are a censiderable distance aV/ay. Trading Range Breakeut Last Sale Adams Express American Cyanamid American Pewer & Light American Metal American Water Works Atlas Corperation Chicago. Northwest Crane Company Eastern Alrlines Electric Autolite , Electric Pewer & Light Evans Products Fensteel General Cable General Metors General Railway Signal Heudaille Hershey Hewe Sound Illinois Central International Mineral Jones &- Laughlin Libbey-Owens-Ferd Murray Corporatien Revere Copper Simmens Company Standard Gus 4 pfd Werthingten Pump 18 – 14 55 – 40 16 – 10 32 – 24 18 – 12 26 .- 22 26 – 15 40 – 27 24 – 17 65 – 51 19 12 25 – 16 22 – 11 14 – 8 65 – 48 32 – 19 18 – 13 38 – 31 30 – 19 33 – 23 39 – 28 59 – 43 15 – 10 24 – 14 4l – 28 37 – 18 68 – 47 19 56 17 33 19 27 27 4l 25 66 20 26 23 15 66 33 19 39 31 34 40 60 16 25 42 38 69 17 7/8 467/8 11 5/8 29 3/4 17 1/2 23 17 3/4 36 20 7/8 56 7/8 18 3/4 22 1/2 16 7/8 12 3/4 59 3/4 271/4 18 1/8 37 28 1/8 33 35 1/4 54 3/8 14 20 1/2 381/2 29 5/8 64 At the intra-day hiehs ef the week, up to. Friday, ef 184.56 and 50.59, both averages were within shooting distance of the July highs ef 187.66 and 51.92. Penetration ef these two peints would give Ii bull market signal. Obvieusly, we are new in an area of streng recistance to. the advance and a censiderable turnever of stock may be needed to penetrate the resistance area which marked the top ef the markt beth in February and July. So. far, the action has been faverable and offerinr.;s have been taken Vii th enly' smdl dips. Considering the fact that the majority ef the issues in eur recommended list have already penetrated their resistance to indicate lenger term uptrends,. we believe the odds favor similar actien by the rest ef the list and the general averages. EDMUND lV. TABELL october 17, 1947 SHIELDS & COMPANY Clesings Dew-Jenes Industrials Dlw-Jenes Rails Dew-Jenes 65-Steck 183.52 50.20 -65.61 The opinions elpressed in this letter are the perOnal interpretation of c.ham by Mr Edmund W. Tabell and are not presented lIS the opinions of Shields & Company.