Viewing Month: March 1948

Tabell’s Market Letter – March 01, 1948

Tabell’s Market Letter – March 01, 1948

Tabell's Market Letter - March 01, 1948
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Technical Market Action The rail average brok.. out of its three-week traning range on the up side on Monday, thus lellding additional confimatolJ evidence to the possibility that the averages reached their intcrmudiat9 ter lows at 164.07 Lnd 47.48 on February lOh. londay' s rally in the rail average reached a high of 50.08 com- pared with the Februar-J 17th high of 49.3'1. The industrial avera,,;c, at a high of 168.62 was still belo\i trw F'ebrue ry 17th high of 169.23 Frol.1 a shorkr terw point of view, the industrial average could rally back tc the 173-175 are. before 'eeting much re,sistancF). In a period such as this, it is cifficul t to gauge the imnediate term rally possibilities. The trer,lendous possible base area built up in the 161-165 rrnge h, s 11. terrific upside; potE'ntial which in the cnse of SO8 dynolaic news happening, , auld nable the laark8t to push through the 175-185 upside resistance 1'..1'00. vlithout the prior fomation of nn inter- mediate ter!.l base. Just what nel,s 17Quld change the pl'eS0nt bearish psychology is problematical mIt poseibillties include favorable action on the tax bill, settle- ment of third round wage increases, lowering of T,-.argin requirelm ts, passing of E.R.P. bi.ll and a rather unlikely conciliatory nove fro, Rusia. In any event, fron a nearer ter;1 viewpoint, it seeFlS wiser to await signs of an overbought condition rather than attmpt to predict a rally objective. At the mOIl6nt, lliere are no signs of an overbought teclmical pa.ttern. In fact, the reverse is true e.nd the market a.ppears to b8 clerging fro,a an !sold teclmical pattern. Several groups are showing better than averag6 market action and should be alilong the lc.aders in any further extension of the risc,o The groups are enume-' rat'd belovi together with recomf.1wded issues in eQch group. The raiJ s ar0 showing outsta.nding action and would e-l'ect at least a testing of tho highs. \;'e have recom.,ended quite Q few issues in this group. They include Alleghany Corp. ( 2 7/8), Allegheny pfd. (39 7/8), Atchison,Topeke & Santa Fe (89 5/8, Chicago NorthVicstorn (16), DenTer & Rio Grande (18 3/8, Gulf Mobile & Ohio (16), Il11nois Central (29 1/4), Kansas City Southel (25 5/8), Northorn PacifiC (19 1/8) ,St.. Louis-Sar. Francisco (9 3/8), Seaboard I.ir Line (15), Southern Pacific (477/8) and Union Pcific (161). In this group, Gulf Mobile &Ohio nade a new high-on Monday. Th8 aircrfts are alse showi.ng good near tern action as are the airlines. These trIO groups are represented in our rcconaended list by Consolidated vuitce (13 7/8), Eastrn Airlines (177/8) ane United Aircraft (26). Sperry Corp. (23 3/8) also h!'.s 8.'l attractive pattern. The gold stocks alsrrhave been showing excellent technical action. We have no representative in this group,but Dome ;\Unes (18 5/8) appears suitable for purchase. ;'.nother group Vii th better than average action is the natural gas compani(..s. This group is represented in our list by Electric Pov,er & Light (141/4) vlhich should be clDssified in the nat.ural g'1.S group becaus3 cf its ownership of United Gas Corporation and Shar.lrock Oil & Gas (27).' The oil w811 supply group is represented in our list by National Supply (21 7/8) and Foster lilleeler (25 5/8). l'he groups und issues mentioned above should be allOng the leaders in any nteri(ll extension of the present. rise, over the nearer term. The long term pattern remains unchanged. Believe the sev8ntcen-r.lonth trading ranee betneen 161 I.nd 187 is an accumulation area \'lith substantially higher prices indicated for the longer terra. . EDMUND Vi. TABELL March 1, 1948 SHIELDS & COMP/.NY elosiM,L Do-Jones Industrials DOVl-Jcne,s Rails DO\,I-Jones 65-Stock 168.14 49.81 60.96 The opinlons expressed In this tlot are Ihe personal interpretation Clf charts by Mr. Edmund W. TabeH and are not presented as the opinions of Shields I. Company.

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Tabell’s Market Letter – March 03, 1948

Tabell’s Market Letter – March 03, 1948

Tabell's Market Letter - March 03, 1948
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Technical Market Action' Listed below are tbe issues in our recor.!o1ended list. These issues have been advised for purchase at v&.rious ti1es fron September 1946 to date. , The majority have been advised during the many descents into the 10-160 buying range. The issues marked wit cn asterisk are the thirty-one issues recoomended in our letter of Fbruary 11th as having exceptionally favorable technical pntterns.. The technical action of the conplete list will be follOl'led in subsequent letters as the occasion warrants. More detailed infornation on any of these issues is available upon request to customers of Shields & Conpany. Approx. Price Ad/l.OS Express 15 ;Addressograph 30 Alleghany Corp 3 IJ.lghany, pfd 40 Alhgheny Ludluo 26 Amer. Cynnanid 35 Arkansas Nat.Gas A 5 Atchison, Topeka 90 Atlas Corp 20 Barnsdall Oil ;fBigelow Sanford 35 60 ;fBliss (E. vi.) 24 Borg \larner 46 ClU';1pbell llyan t 26 Celotex 24 Chicago NorthVlest 16 Chrysler 56 Cities Service 35 Colorado Fuel 13 Colutlbia Gas 11 Consolo Vultee 13 Crown Cork & Seal 19 Deep Rock Oil 33 Deere & Co 3 Denver R.G.& I'/est 18 Distillers Seagram 13 .Doehler Jarvis )0 DO;le illines 18 Eagle Picher 20 Eastern Airlines 18 ;fElec. Pr. & Lt. 14 ;fElliott I Evans Products 15 Fansteel 12 ;fFlintkote 34 Foster Wheeler 25 General Cable 10 General /Aotors 53 General Railway Sig 25 General Realty Util 5 Gulf Mobile 16 Gulf Oil 61 ;fHewitt-Robins 2l Houdaille Hershey 14 Houston Oil 23 1fIllinois Central 29 Industrial Rayon 42 Interlake Iron 12 1946 High Approx Price 24 5/4 International Paper 41 3/4 lflnter.lHnerals 8 1/4 Jqy Manufacturing 69 1/4 Kansas City So 61 1/8 lfMesta iachine 63 3/4 Montgor.tery Ward 8 Mullins Mfg. 121 Murray Corp 34 3/8 ;fNc.tional Supply 31 New York Air Brake 83 1/4 Northern Pacific 33 1/4 Phio Oil 61 3/4 Oliver Corp 40 /8 Pncific Tin 38 1/8 Pepsi Cola 43 1/2 ;fPhelps Dodge O 1/2 Pure Oil 41 /8 Radio Corp 23 3/4 Rayonier 14 Revere Copper 33 5/8 P.hee,l Mfg. 31 St.Louis-Sn Fran 41 1/2 Schenley 58 1/2 Seo.board Airline 40 Seaboard Oil 30 Shanrock Oil 5 /8 Sharon Steel 29 3/4 SirmlOns 30 1/8 Sollthern Pacific 33 3/8 Sperry Corp 29 1/2 gquare D 39 1/2 Standard Oil N.J. 33 3/4 42 Texas Pac. Coal 20th-CentuT', Fox 46 /8 Union Bag 49 1/2 Union Carbide 16' 3/8 Union Pacific 80 3/8 48 Uni ted Aircraft ;fU. S. & Foreign 11 3/4 U. S. Pipe 39 1/4 Visking Corp 8 \iestingho use Air B. 39 1/2 \'!estinghouse Elec. 28 3/8 West Penn Elec. 30 Hheeling Steel 45 1/2 54 l'iorthington Pump Youngstown Sheet 20 1/4 45 25 35 25 3 50 21 14 22 37 19 30 24 5 19 42 28 8 24 16 21 9 26 15 .38 2 32 28 48 23 17 7'3 43 19 29 100 161 26 1 42 33 34 26 14 40 ,56 69 March 3, 1948 EDMUND v;. TABELL SHIELDS & COMPANY Closings Dovl-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 168.61 50.1 61.19 1946 High 55 1/2 45 34 40 1/4 61 1/2 1041/4 22 1/4 22 25 69 1/2 36 29 5/8 36 11 5/8 40 1/2 48 28 /8 19 33 31 3/4 38 100 37 3/4 39 1/2 32 1/2 40 3/8 56 /8 70 40 1/2 25 1/8 78 3/4 32 5/8 63 /8 39 125 168 1/2 3 3/8 32 1/2 60 1/4 52 41 5/8 39 3/4 28 3/4 621/2 74 83 /8 Tha op;nions exprened in this letter ere the per50nal interpretation 01 charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company. – – – – — – – – —-'——–.-………;;…..——-…..

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Tabell’s Market Letter – March 09, 1948

Tabell’s Market Letter – March 09, 1948

Tabell's Market Letter - March 09, 1948
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Technical Market Action Last week Standard & Poor's issued their first preliminc.ry estir.late of 1948 earnings on a number of rails. The estites for the rail issues in our recom,nended list are given belo. – Atchison,Topeka & Santa Fe Chicago & North \Iestern Denver & Rio Grande Western Gulf, Mobile & Ohio Illinois Central (Syst) Kansas City. Southern Northern Pacific St. Louis-San Francisco (Syst) Seaboard Air Line Southern Pacific (Syst) Union PacifiC Last Sale 89 1/2 15 1/4 . 17 1/2 15 3/4 28 5/8 24 5/8 18 1/2 9 1/4 15 47 1/4 158 Net Per Common Share E-1948 .t.41 21.00 3.85 9.50 3.50 14.50 11.00 6.50 3.75 4.00 11.50 28.00 17.11 0.50 7.05 2.66 10.25 9.75 5.40 2.25 2.96 8.86 22.70 There nre no estimates given on ftleehany CorporQtion, preferred and common, which are also in our reconmended list. The mile continue their better than average action. Beli eve they vlill be the leaders on any, extension of the rise. A number of other issues iIl our recorlnended list are also sho17ing better than markGt action. Included in this grouping ure Arkansas Natural Gas A, ColUl'lbia Gas, Electric Pover & Li ght and Shalurock Oil & Gas in thE oob.llrt.l gas group, Dome Mines in the gold group and Consolidated Vultee,. Sperry Corporc.tion and United Aircraft in the aViation group. WEstinghoTlBe Electric scens to be 'deeting support and Radio Corporation also ppearsrto be under accuwulation. Tuesday's market continued the decline of the previous day and the industrial average closed 95 cents lower at 166.76 and the rails were dorm 48 cents ct 49.00. Most of the decline occurred in the first hour and prices 118rerelatively firn for the balance of t.he day. Pessi13ism and gloon are once 'Jore rife in the Street but considering the nature of the news and the dire forecasts by radio cOlJlr.lentators, the r.larket is not acting badly. Volune continues snall and declines are due to lack of buying interest rather than selling pressure. At tuesday's lows of 166.04 and 48.78, both averages \ere above the February lith lo'/ls of 164.07 and 47.48. Thus, stocks are still holding in their narrow range of the past month. Last vleek the rails were able to penetrate their Febru.ry 17th high of 49.37 to 50.37, but the industrials met reSistance 'at the equiv8ent high of 169.23 and were able to penetrate it only by pennies to reach 169.28. Until 169.28 and 50.37 are both decisively penetrated on the upside or until 164.07 and 47.48 are both decisively penetrated on the downSide, see no indication of an impot move. I continue to believe that the long trading range of the last eighteen months is an area of accUllUl8.tion with stocl(s p8.ssing froQ weaker into stronger har,ds. This is regardless of the near terQ action of the market. As I predicted in my beginning of the year forecast, I believe the lows for the yecr will be made in the first four months. lie may already have seen them. In the ncantiTle, advise forgetting about the neaning1ess near term fluctuations of the Tlarket and concentrate on acquiring individual issues when they are available at favorable price levels/ EDMUND VI. TABELL March 9, 1948 SHIELDS & COMPANY Closings Dow-Jones Industrials DoV/-Jones Rails Dow-Jones 65-Stock 166.76 49.00 60.45 ( \, ( , -1 The opinions expressed in Ihis letter are the personal Interpretation of charts by Mr. Edmund W. TabeU and are nol presented as the opiniolU of Shields & Company, ..

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Tabell’s Market Letter – March 11, 1948

Tabell’s Market Letter – March 11, 1948

Tabell's Market Letter - March 11, 1948
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——– – – – – – – – – – – – – – – – – – – – – – – – – – c – – – – – – – – – – – – – – – – – – Technical Market Action While the broad ttern of the market suggests that the trading range of the past eighteen r.wnths is a slow patience-tryin!; accumulating phase, not all incividual issues have the sa'1C technical foroations. I have constantly drawn attention to the diverse patterns not only betIJe8n groups but also in stocks in the saJile group. Recently, I mentioned the relatively L10re favorable technical pattern of Westinghose Electric as coopared IIi th General Electric. I \-;ould also like to draw your attention to the difference in the technical patterns of Consolidated Edison and Colw,bia Gas & Electric. While both conpanies are in the general public utHHy classification, they are in quite different divLSione of the publiC utility field. Consolidated Edison is both an operating and holding cOJpany which, together Vii th subsidiaries, supplies gas, electricity and stean i New York City and hestchester County. Colul;Jbia Gas is a holding cor.lpany, heading a system COI..sisiing of nineteen operating cOlJpanies in Kentucky, Maryland, Nell York, Ohio, PemlsylvEJ1ia, Virginia and West Virginia. These opere.ting companies are engaged primarily in producing, purchasing, transporting and selling gas. Consolidated Edison has a very negative technical pattern. The downside indications of the broad distri.butional top betveen 36 and 32 indicated tl decline to 24 followed qy 17. The stock declined to 24 3/4 in October 1946 and eld tha level until a year lat8r ill October 1947 when it started e decline doWn' to' a 'low' , of 21. The stocle is still holding aroW1d that level. At the r,oDent, before any worthwhile upside l10ve is indicted, it ould seem that a base pattern vlOuld need to be built up in trading range around these or slightly lower levels. There is a heavy supply of stock in the 25-27 area that vlill act as strong resistance to anyupside move; Columbia Gas, on the other hand, has a potentially strong technical pattern. It made its low of 8 1/2 in the first break in October 1946. v.nen the averages broke to the sar,le lor. level 111 Mar, 1947, Columbia Gas held at 10. At the recent February lows, Colunbia Gs held at 10 1/4. The issue seems to be meeting increasing'support on every general narket dip. The base built up at the 9-10 area indicates a long term potential of 20. Consolidated Edison earned .1.90 a shc.re in 1947 and paid 1.60 in divi- dends to yield apPloxima tely 7.6 at th closing level of 21 1/8. Colurlbi Gas earned l.36 in 1947 and paid 60 cents in regular dividends plus 15 cents extra to yield6.8 at the clOSing price of 10 7/8. \10L) On the basis of the technical patterns of both issues, Colurlbia Gas appears ('LI'\)to offer better appreciation possi.bilities than Consolidated Edison. The market continues to hold in the narrow trnding range of the past month. However, volume indications in the past two days have been slir;htly more favorable. No worthwhile move indicated W1til 169.28 and 50.37 are both decisively penetrated on the upside or until 164.07 and 47.48 are both penetrated on the downside. Regardless of ninor neartcrm fluctuations, believe the rrarket is in the final stages of a long accumulation arca. March 11, 1941! EDMUND I.. TABELL SHIELDS & C01PANY Th. opiflion. expressed in thiS letter ar. the personal interpretahon of chari. by Mr. Edmund W. Tabell and are not prelented a, the opinion' of Shield, & Company. ,, \ 'I

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Tabell’s Market Letter – March 15, 1948

Tabell’s Market Letter – March 15, 1948

Tabell's Market Letter - March 15, 1948
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Technical Market Action There is an excellent article in the IIhrch 20th issue of Collier's Magezine entitled hat ;e Are Afrad Of by Howard llhitle.n. Mr. ialitmlU IIri tes about the fear psychosis 'ihich seens to be ;ripping our nation today. I recoIlJlend this article as Dust reading. It is this fear psychcsis which enables us to buy good securities at prices of two to six tiL1E.s yearly earnings at a yield of 6 to 12. It is this fear psychosis that holds dovm the stock ,arket in the fac'e of record earnings, record enployoent and a trenendous pentu!J deJ.lnd — a deoand built up not only by five years of under-production cf p,.,acotiDe goods during the war, but also lack of buying pover during the t,n previous depression years. It is this fear psychosis that 11akes nost investors and speculators pay nore attention to the intangible factor of what might happen than to the tangible factor of what is happening. /rr,iS letter has continuously stressed the opl.nion that the trading range of the stock market for the past eighteen oonths is an area of c.ccumu- lation, with stocks passing froJ! weaker into stronger hands. Out of it 17ill cone an advance that should reach levels, in selected stocks, substantially above the highs of 1946. There is no telling when the advance will start. The present feur psychosis may continue for a While lonEer. ,hat will change this psycholoGY is problenaticaL Perhaps because we cannot continually sustain the sal1'e enotioll at a hiGh pitch for an indefinite til,le, it will just Viear itself out. Fron a technical viewpoint, the stage is set for a sharp rise in prices. All that is needed is the spark of a changed investor psychology. l,'hen that occurs it is boing to make sone of the apostles of gloom feel just a little bit foolish to realize they have passed up the opportuni ty to buy securities at a deflutcd price level that is not only failing to take into consideration the present level of busic.ess, but is discounting a possible tenporary dip that would bring the naladjustments of our present econonic pattern into line., There are SO10 slight technical signs in the action of the present market that indicate th noarby possibiE ty of an upward mo.ve of some iuportance. v,l1i.le voluoe renains 511a11, tn.ding has been concentrated in stocks which are noving higher. For exaJ,ple, of the fiftee.n nest active stocks last week, thirteen closed hir,her, onc was unchanged and one finished the week oneeighth of a point lower. This upswing in heuvily traded issues was in the face of u general narket that was practically unche.nged for the week. Incidentally, three of the stronger stocks ere part of ny list of recoended issues, nanely, Gulf.Mobile & Ohio, Electric Power & Light and Radio Corporation. Another favorable sign is the continued firess and strength in the rail group. At today's prices, the rail average is only four points below its high of the past eighteen Bonths while' the industrials are still tVienty points below their cO1parable highs. I expect the rails to be th leaders in the next upward sning. EDMUND Ie;. TABELL March 15, 1948 SHIELDS & COMPANY The opinions ellproned in this I.He, .re the personal interpretation of cherts h'l r. Edmund W. label! and ere not presented as the opinions of Sield. & Company.

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Tabell’s Market Letter – March 17, 1948

Tabell’s Market Letter – March 17, 1948

Tabell's Market Letter - March 17, 1948
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Technical Market Action Both the industrial p.nd rail averages, at Tuesday's lows of 165.03 and 48.83, succeeded in hol(1inG above the February intra-clay lows of 164.07 and 47.48. On hednesday, the oarket turned stronger and both averages closed higher with the industrial overage up 85 cents on the day and the rails 56 cents higher. /A co;nparison of Tuesday's decline with th.t of February lOth and 11th brings SOlJe ra'vher interesting facts to light. On February lOth, the Inarket sold off sh;.rply. The industrial average declined ;)4.17 and the rails were down (/2.00. Volune totalled 1,460,000 shares. The aV8Tags reached intra-day lows of 165.2.6 and 48.04 and 181 issues rf'ached nel7 10\vs. The decline continued in the first hour of February 11th E.nd the eVerages n!lched intra-day lov!s of 164.07 and 47.48 ;.nd 204 issues reached nelV 1m,s. The narket rallied later in the dny End closed a few cents higher. Total volurle for February 11th was 1,490,000 shares. On the other hand, the decline of Tuesuay, i,larch 16th, shows a definite lessening of selling pressur8. The volurle was lESS than a rlillion shares at e. total of 940,000 shares for the day. The industrials declined ,2.23 and the rails t1.21. Th intra-cay 10ViS vrre 165.03 and 48.83. Only 161 issues reached nel lov;s. ,;edncsday's intra-da;)' lows Vlere 165.03 and 48.99 and on the advance, the volulJe of trading, at 930,000 shares, vms 8.1nost equal to that of the previous day' ,; decline. In cddition, 28 issues ;lade new hirhs for the year against 84 new 10Vis. r,hile the eVidence is far fron conclusive, it points to a graduc.l exhaustion of selling pressure. In fact, the sellino; pressure h'28 been gradually declininB since Fcbruar'J 11th. The irregularity of the past rlonth has been ccused by lack of buyinG inter8st rather thr.n selling pressure./ However, as I've nentioned before, it S8erJS nore advisable to follow the patterns of individual issues at this stage-of the narket rather than the m8aninbless neanderings of the averaes in this last phase of the accunulation pr.ttern. Individual issues continue to show excellent r.ction as witness Electric Power & Lil-ht, one of our recorulended iSSUeS th,t reached Go new high for the YCClr. Pure Oil, cJlother rccorl!1ended issue also showed independent strength as did Elliot Conpany on the New Yor\( Curb. Continue to like thb action of recorlmended rails. Also, in the 10Vier priped group, Colunbia Gas aDd Radio Corporation continue to 3ho.l improved technical action. March 17, 1948 ED1iUND II. Tf,BELL SHIELDS & COMPANY ClOSings Dow-Jones Industrials Dow-Jones Rails DOVi-Jonl'S 65-Stock 166.24 49.46 60.49 The opinions expressed In thiS leiter are the personal inlerpre'ahon of charts by Mr. Edmund W label! and are not presented as Ihe opinions of Shields & Company.

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Tabell’s Market Letter – March 22, 1948

Tabell’s Market Letter – March 22, 1948

Tabell's Market Letter - March 22, 1948
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Technical Market Action Irn optnon,oy the odds nOr! favor the probability that the oft-mentioned 170-160 buying range in the Dow-Jones industrial average will not be entered again prior to a penetration of the 187.66 high of the industrials and the 54.17 hih of the rails. Saturday's action was very favorable fran a technical viewpoint. Saturday's lows were 170.76 and 50.82and Frido.Y's.highs WGr8 169.75 and 50.46. Thus there is an upside gap of 1.01 on the industrials and 36 cents on the rails. It is interesting to note that on February lOth, on volune of 1,460,000 shares the averages broke C4.17 and 2.00 and left a downside gap of 41 cents between 169.33 and 168.92 on the indus trials and a downside gap of 35 cents between 49.97 and 49.62 on tho rails. Thus, Saturdc.y's action lee-ves the entire trading range of the past six weeks in sort of a little island detached froo the rest of the pattern. This type of double gap is kno…m as an island reversal and quite often indicates an inportant change in trend. It also is interesting to note that Saturday's upside breakaway gap occurred on voluoe of 1,260,000 she.res 01 at the rate of over 3,000,000 shares for a full day Monday's oarket absorbed quite a bit of profit-taking but rlanaged to close 54 cents hieher on the industrials at 173.66 and only 2 cents lower on the rails at 51.76. Voluoe las 2,040,000 shares. The oarket appears headed for higher levels. Obviously, the advance will not be in a straight line. Ther are resistance areas at 175-176 and at 179-181 and again at 185-187. However, the action of the rlarket indicates that if purchases have not already been made in the 160-170 buying range they should be made on slight price dips. Advise previously recorlmended issues, particularly the thirt'-one stocks specinlly reconended in our letter of February 11th. March 22, 1948 EDMUND II. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails DOVi-Jones 65-Stock 173.66 51.76 63.04 The opinions expreued In Ihb letter are the personal Jntl!lrpretatiM of ,-'rt. by . Edmund W. label! and are not presented as the opinions of Shlekb & Company.

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Tabell’s Market Letter – March 24, 1948

Tabell’s Market Letter – March 24, 1948

Tabell's Market Letter - March 24, 1948
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Technical Market Action The market sees to be following a noal technical pattern;sually after the type of gap witnessed last Saturday, the market consolidates for several days before resuming the oain trend. .lliile most ordinary gaps are filled a short time after their occurrence, it would appear that last week I s gap was of the breakaway variety, that is, a sharp overnight breakauay out of a prolonged period in a narrow trading range. Usually, this e of gap is not filled during the present phase of the oarket. The industrials reached an intra-day high of 175.23 on Monday. The first supply area is 175-176, so it is lOGical to expect sooe resistance at this level. Houever, do not believe much of a decline will occur at this stage. Expect the 172 1/2-171 level to furnish good support and would buy recommended issues on minor dips. After some possible further irregularity, expect a testing of the 179-181 area. Stronger upside resistance nay be met at this point. ' On ITednesday, the rails continued their excellent technical action by reaching a new high for the nove at 52.47, just a shade above Monday's high of 52.43. The rail average is not far away fron the January high of 54.17 and would not be surprised if this level were penetrated on the next upswing. As to individual issues, continue to advise the stocks in our recoomended list with particular reference to the thirty-one issues in our letter of February 11th. As to groups, believe the rails are outstanding. Also, in general, prefer the heavy industry shares, ulthough there ure also Sooe outstanding bargains in other groups. For the Iloaller investor without ueans of proper diversification, suggest the shares of listed investoent trust issues, nost of which are selling at substantial discounts fro! their 'asset value. March 24, 1948 EmlUND W. TABELL SRIELDS & COMPlINY Closings Don-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 173.62 52.06 63.12 Tlte ODinlons upressed In this fotter ant the penonal Interpretation of charts by Mr. Edmund W. rabell and are nof presented as fhe opinions of Shields & Company. J

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Tabell’s Market Letter – March 29, 1948

Tabell’s Market Letter – March 29, 1948

Tabell's Market Letter - March 29, 1948
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Technical Market Action J The thirty stocks mentioned in my special letter of Februexy 11th have, in nost instces, sho.m bettor than average action. These stocks were all selected because of their large potential llccunulation areas. While most of them have moved up from their Februnry lows, substantially higher levels are indicated in the event of an upside penetration of the lonb eighteen-nonth trading renges. I an re-listing these issues below together with their potential long term price objectives. ApproxiMate Price February 11th Recent !pproximate Potential Price Long Term Objective Addrensograph Bigelow Sanford BliSS, E. W. Borg Warner Chicago North I'/estern Colunbia Gas Doehler Jarvis Electric Power & Light Elliot Conpany Fansteel Flintkote Gulf Mobile & Ohio Hewitt-Robbins Illinois Central Industrial Rc.yon International Minerals & Cheo Kansas City Southern Mesta Machine Montgo!Jery War,d Nntional Supply New York Air Bruke Phelps Dodge Radio Corp. of America Seaboard Airline Sharon Steel Southern Pacific Square D U. S. & Foreign Wheeling Steel Youngston Sheet & Tube 29 56 24 44 15 10 30 13 15 11 31 13 2l 28 39 23 24 38 49 19 36 41 8 14 30 44 15 17 39 67 33 70 60 100 26 50 52 85 16 35 12 20 35 75 18 43 21 60 14 32 35 60 17 29 24 50 31 60 46 85 28 45 29 60 38 75 53 90 23 36 38 80 48 90 10 20 16 36 33 65 50 100 20 40 20 45 41 100 74 1/.0 Obviously, these price levels are for the longer tern and any price advances to the levels oentioned will be puncuat.ed by sizecble technical recessions along the line. As is nornal technically, the market continues to meet resistance at the 175-l176 supply area in the Dow-Jones industrial average. The cornction of the sharp ten point advance in five trading days seews to be taking the form o a consolidation rather than a decline. Continue to expect support in the 172tllt arer. followed by a continuation of the internediate upswing to the next reslstance area at 179-181. Froll that point, it is possible that a secondary correction of the fifteen-point !,dvance oi!;ht occur. This correction could retrace a third to a half of the advance and bring the averaees back to 175-172. BeliEve such a technical correction will be followed by a testing of the July high of 187.66 and a possible bull narket signal. As for the rails, would not be surprised if they penetrated the 54.17 high of .January on the next advance. The advance could carry to 57-58 followed by a technical correction back to 55-54. Believe the longer tern objective in the rail ayerage is in the 75-80 area. Continue to consider selected rails as outstandingly nttractive. EDMUND W. TABELL March 29, 1948 SHIELDS & COMPANY Closings Dow-Jones Industrials 173.65 Dow-Jones Rails 52.42 Dow-Jones 65-Stock 63.26 The opmions expressed in this leHor ere the penona' irTterprelatkln of charts by Mr. Edmund W. TabeU and are not presonted as the opinions of Shiekb & Comn't.

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