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Technical Market Action The market continued its downtrend in the first three nours of Frlday I s market and the averages reached an intra-day low of 180.04 on the industrials and 59.520n the rails. On both averages, Friday's lows were above the July 19th lows of 179.58 and 58.39. The market rallied from the lows in the fourth hour and regained a portion of the day's losses. At the close the industrial average at 181.33 was down 2.24 on the day and rails at 60.15 were down 74 cents. Volume increased to 1,310,000 shares but the hours of heaviest trading were between noon and one o'clock when the market was meeting support at the lows and in the final hour when the market was in a rallying phas Subject to some further irregularity on Monday, believe market is at or approaching a buying area. There are no important distributional tops on either averages or individual issues. Dow-Jones Industrial average downside indication remains 182-178. Top on rails is indefinite. Dow-Jones 65-Combined Stock average,which includes industrials, rails and utilities, could work down to 65-64 level. New York Times average, which reached a low of approximately 118 on July 19th, could dip to 116-114 and N.Y,Herald-Tribune average, which reached 123, could dip to 121'. Both of these are also combined averages. That is the maximum I could Visualize on the downside at this point. In addition,the technical indicator which signalled turn in market at bottom on July 19th, reaChed an oversold position and gave an upside signal at Friday'S close. Believe market is at or near a turning point, both from a trading and long term viewpoint. Listed below are the remaining issues in my revised list of recommended issues with attractive technical patterns. As the market appears to be at or approaching a buying point, I have included all the remaining issues in one letter with only the last sale rather than issuing a few at a time together ith data on the recent price range. These issues, together with those in the two preceding letters, comprise the entire recommended list . InCidentally, in the letter of July 29th, the 1948 price range was from the first of the year to July 1st. The issues below are divided into medium-grade and speculative Those marked with a are new additions to the list — Medium-Grade Deere & Co.,37t, Distillers-Seagram 16 3/8,Doehler-Jarvis 3, Eagle Picher 21t,Eaton Mfg.63t,Fairbanks Morse 47, Flintkote 342,Food Machinery 38t, Foster Wheeler 33t,General Amer. Trans. 53, General Railway Signal 23i,General Time Instrument 26t, Gimbel 19 3/4i Gulf Oil 70i, Hewitt-Robbins 22, Holland Furnace 264 ,Howe Sound 392' Industrial Rayon 47t,Inland Steel 43t,Inter.Minerals & Chemical 30t, Jones & Laughlin 34t, Kelsey Hayes Wheel wA 24, Koppers Co.32t, Lehigh Portland Cement 34k, Libby-Owens-Ford 51t, Magma Copper 20t, Masonite 63, McCrory Stores 30t, Mesta Machine 43, Midland Steel li, Montgomery Ward. 54 3/4 Mueller Brass 20t, Nash Kelvinator 18, Natl.Cash Register 43, Natl. Lead 32i,Natl.Supply 2li,N.Y.Air Brake 39t,Northern Pac. 22i,Otis Elevator 33, Pacific Mjlls 43,Panhandle stern Pipe Line 60i,Phelps Dodge 54i,Rheem Mfg.21t,Royal Typewriter 21iSt.JOseph Lead 394 , Smith (A.O.) 2549i2S' cShoenultehyer Corp. -17i, Timken-Detroit Axle 29i,Sharon Steel 40,Sheel Union Oil n Pacific 56k, Square D 19t, Tennessee 20i,Underwood Corp. 53 3/, Union Bag 33i, Union Carbide 39i, United Biscuit 22i, United Merchant 16i, U.S.Plywood 31, U.S. Pipe & Foundry 47, Victor Chemical 39 3/4, West- inghouse Elec. 28i, Wheeling Steel 50i Worthington Pump 19i, Yale & Towne 29i, Youngstown Sheet & Tube 802 , Youngstown Steel Door 18, Zenith Raaio 31. Speculative nn lJ.I.'Tare,Lack.& Western lli,Denver & Rio Grande 35i, Devoe & Raynolds A , Eastern Airlines 14t, Eastern Stainless Steel 17t,Electric Power & Light 21, Elliott 24, Fansteel 12 3/4, General Cable 13i, Gulf,Mobile & Ohio 16i, Hercules Motors 17k, Hudson Motors 17i, Illinois Central 37i,Kansas City So. 41t,Minn.St.Paul & S.S.Marie Ilt,Mullins Mfg.29k, Pacific Tin 5,Penn-Dlxle Cement 19t,Pub.Serv.Elec. & Gas 21t,Publlc- ker Ind.21 3/4,Radio l2i,Readlng 24, Revere Coper l8i,Reynolds Metal 23t,St.Louis-San Fran.13 3/4,St.Regis Paper lle,Seaboard Air Line 22 Seaboard A.L.pfd. 5St,Shamrock Oil 32t,Speigel 10t,Std.Gas 4.pfd.224 , Studebaker 2Si,Tri-Cod.8 3/4,U.S. & Fgn 27i, West Penn EJ,.17 3/4, st-Maryland 13f;West.Md.2nd pfd. 33 3/4, Western Pac.34,Western Union 2lt'-York Corp. 13. EDMUND W. TABELL July 30,1948 SHIELDS & COMPANY 'Ote C1)inions expressed ift fhis letter are lhe personal intrellitien of cherts by MI. Edmund . label! and Ire not presented aJ the opinions of Shle1cb & Company.