Tabell’s Market Letter – March 01, 1949

SAN FRANCISCO, CALIF. NEW YORK, N. Y. LOS ANGELES, CALIF. BAKERSFIELD BEVERLY HILLS EUREKA FRBNO RIVERSIDE SACRAMENTO SAN DIEGO LONG BEACH MODESTO OAKLAND PASADENA SANTA ANA STOCKTON VAllEJO TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5, N. Y. Digby 4-4141 The industrial average has now had a double test of the November low and has Succeeded in holding above that level on both February 11th oancdcaFsieobnrsuary 25th while the rail average reached new low territory on both Dow-Jones Industrials DOW-Jones Rails Nov. 30th 170.35 51.69 Feb. 11th 171.03 48.43 Feb. 25th 170,56 46.04 This divergence in the action of the two averages may well mark the end of the intermediate downtrend from the June-July 1948 highs of 193 and 65. At Tuesday'S high of 174.61, the industrials were close to the February 18th high of 175.62 which was the high point of ,the rally from the February 11th low. Ability to penetrate this high would confirm the change in minor trend. However, even if the November lows are penetrated downside, I would not expect much further reaction. Last week, I listed the down- Side objectives of the May-October tops of some leading rail, oil and 'steel issues. The balance of the list is given below. As noted last vleek, the objectives in many casel have been approximately reached Norfolk & Western Northern Pacific Ohio Oil Pennsylvania R.R. Phillips Petroleum Pure Oil Republic Steel Richfield Oil St.Louis-San Fran Seaboard Air Line R.R. Sharon Steel Shell Union Oil Southern Pacific Southern Railway Stand.Oil of Calif. Stand.Oil of Ind. Stand.Oil of N.J. Texas Company Texas Pacific Rwy Union Oil Union Pacific Western Pacific Wheeling Steel Youngstown s. & T. Allrox. 3 1/49 Last 52 1/2 14 1/2 27 1/4. 15 7/8 56 27 1/2 24 3/8 27 9 16 1/4 33 1/2 33 1/2 41 5/8 35 59 5/8 38 3/8 67 1/2 51 1/8 40 27 3/8 81 1/8 24 44 1/8 66 1/2 ObJective 48 14 24 15 52-50 24 23 27-23 7 14 30 31 39-35 34-33 55-50 37 66-62 48 41 24 75-70 22-19 42 66-61 Low 1246-1248 55 14 20 16 51 20 23 13 6 12 24 25 35 28 49 37 62 53 35 20 55a 27 33 54 Low 50 1/8 13 3/4 25 3/4 15 1/4 51 1/2 25 1/4 23 3/8 24 3/4 8 14 1/2 32 31 39 3/8 34 1/8 56 3/8 37 3/8 65 1/2 49 40 25 1/2 77 5/8 22 1/4 42 1/4 63 3/4 Since listing. a- On split basis. March 1, 1949 EDMUND W. TABELL . WALSTON, HOFFMAN & GOODWIN —–