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INVESTMENT SECURITIES SAN FRANCISCO. NEW YORK LONG BEACH. EUREKA FRESNO .. MODESTO .. OAKLAND .. STOCKTON TABELL'S MARKET LETTER IIAKERSFIElD .. RIVERSIDE LOS ANGELES .. SACRAMENTO SANTA ANA .. VALLEJO .. SAN JOSE .r 35 WALL STREET. NEW YORK 5. N. Y. Digby 44141 The industrial average closed lower on Wednesday after a rise of six consecutive trading days in which the average moved from a low of 170.35 on November 30th to a high of 177.25 on December 7th. During the same period of time, the rail average advanced from 51.69 to 54.33. These highs of 177.25 and 54.23 compare with the November 22nd highs of 177.80 and 54.99. It thus becomes apparent that the 178 level is an area of upside resistance. The recent advance has been rather rapid and the short term technical indicator has become overbought and has given a sell signal. This downward potential may be offset by the fact that the long term indicator still appears oversold, thus possibly balancing out the temporarily bearish indications of the minor trend. Any reaction from present levels should be rather mild and might rather take the form of a consolidating period. As I have mentioned many times before, I believe the action of individual issues at this stage is of much greater importance than that of the averages. For example, individual rail issues showed signs of strength near the close on Wednesday. The stocks in the building group have dropped sharply in the last month and would appear to be at or close to important buy levels. Individual issues in this group have excellent technical patterns and should, over a period of time, sell at considerably higher levels. I am listing below several issues in the building and cement group that in my opinion have the best profit possibilities in the field. 1946 High 1948 Low Last Sale Alpha Portland Cement American Radiator Celotex Certainteed Devoe & Raynolds A Eagle Picher Lead Lehigh Portland Cement Masonite Pennsylvania DiXie Cement 39 7/8 23 38 1/8 25 7/8 39 1/2 30 1/8 55 3/4 75 30 3/4 25 12 1/2 22 3/4 12 1/8 20 3/4 18 1/4 30 3/8 47 1/2 15 1/4 26 1/2 14 26 1/2 12 7/8 20 3/4 19 38 1/2 55 3/4 18 These stocks are of varying quality but they all have attractive technical patterns. Purchase is advised near the lows of the year. December 8, 1948 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN Thl. memorudum is not to b. construed as an offer or .olicltatlon of off to buy or Jell any lecurltlet. From tim. to time Walston. Hoffman & Goodwin may have an ihlrest In 10m. or all of the securities mentioned herein. The 0901; material hoi. been preparlld by u matter of information only. It is billed upon information beti.ed r.Uable but not neee.wrily complete, j. lIot 9uar.nt.ed ., ucur.ste or illdlnd iJ not intended to forec/oJ. indepertdent ittquiry.