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i——— — ————– Walston &- Co. — MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwH,Id) OfFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM -rABELL'S MARKET LETTER At the week's high of 272.83, the Dow-Jones industrials had regained .approximately one-third of the roughly 35-point decline from the January bigh of 295.06 to the June low of 260.75. This is the minimum normal retra- ac e mb ee nt tt eirn gaa i nd oawnndt rhe na vde. The rails, at the week's high of retraced 61 of their comparable 108.34, have shown 15-point decline. his is near the maximum two-thirds retracement of the previous decline. Thus, both averages are in a position to furnish a clue to near term action .. Strength in the rails that could carry to 110 would probably indicate at least a testing of the January high of 113.94. Failure of the industrials to- pU8h above the one-third minimum retracement would indicate definite weak- ne8S that would most likely carry over to the rails. Neither the short term or the intermediate term indicator is near overbought territory, so the mar- .ket could advance further without either index becoming vulnerable. Both in- dicators signalled a buy in June. At the moment, a sell signal would be given only by a decline or an inability to move ahead over the next two or three weeks. It would appear that news developments are needed to break the resent stalemate. Despite the fact that the averages are at historically high levels, a -gre,;.t many individual stocks are selling lower than in May, 1946 when the DOI-Jones industrial average was at 213 as compared with 270 at the present 1;ime. Out of 941 of the more activily traded issues on both the New York Stock Exchange and the American Stock Exchange, only 327 or 35 were selling above their 1946 highs. 65 are selling lower. Furthermore, 41 are selling l)eow their 1951 lows when the industrial average reached a low of 240. Only 26 of the total, or 27, show they are in a long term uptrend by holding above both the 1946 highs and the 1951 lows. A partial list of these issues is appended below. This is not necessarily a recommendation for purchase, despite the fact that several of these issues are in my recommended list. However, issues in this list have shown above average long term action and should be watched closely during periods of general market weakness for ad- vantageous buying levels. The partial list follows .Alpha Port .Cement Admiral Corp. Allied Chemical Aluminium,Dtd. Aluminum Co.Amer. Amerada AmErican Can Amer.Gas & Elec. Amer.Hawaiian S.S. ArneI'. Republics Arvin Industries ilteh.Top. & S.F. Atlantic Coast L. l3abcock & Wilcox l3arber Oil Bell Aircraft Bendix Aviation Bethlehem Steel Boden Borg Warner Brldgeport Brass B'Lwyrus Erie Buffalo Forge Carrier Corp. CaterpJllar Central & So.W. Champion Paper ChLcago Corp. Chic .East Ill. Chic.Pneu. Tool Cht'ysler Cincinnati Gas C .LT.Financial Clark Equipment Clevite Corp. Combustion Eng. Commercial Credit Consolo Edison Continental Can Continental Ins. Corning Glass Crown Zellerbach Denver & R.G.West. Dow Chemical DuPont Eaton Mfg. El Paso Natl.Gas Ex-Cell-O Corp. Federated Dept.S. Fidelity-Phenix Firestone Tire First -Natl.Stores Florida Power Food Fair Stores Gamewell Garrett Corp. General Electric GenerarMotors Gillette Co. Goodrich Gulf,Mobile & O. Hazeltine Corp. Hershey Chocolate Houston Lighting Illinois Central Ingersoll-Rand Radio Corp . I ns. Co. 0 f NA . Republic Steel LB.M. Revere Copper Intern'l Paper Safeway Stores Johns Manville St. Regis Paper Joy Mfg. Scott Paper Kansas City So. Seaboard Airline Kroger Co. Sears Roebuck Libbey-Owens F. Shamrock Oil Lone Star Gas So. Natural Gas Louisiana Gas So. Pacific R.R. McGraw Hill Pub. Southern Rwy. Mead Corp. Sperry Corp. Minn.-Honeywell Stand.Oil Calif. Minn. Mining Stand.Oil N. J. Mission Corp. Superior Oil M-K-T, pfd. Texas Pac.Coal & O. Motorola Texas Pac. Rwy. Nat'l Cash Reg. Transamerica Nat'l Dairy Union Bag Nat'l Lead, Union Pac. Rwy. New Mex.& Ariz. Union Carbide N.Y.,Chic.& St.L. United Aircrat No.Amer.Aviation United Biscuit North.Nat'l Gas United Gas Corp. Otis Elevator U. S. Steel Panhandle E.Pipe Warren Petroleum Penn- Dixie C. Western Mar;y-land Phelps Dodge Western Paclfic Philco Corp. Westinghouse Elec.' Phillips Pete. Worthington Corp. Pitts.Con.Coal Zenith Radio Pitts.Plate G. July la, 1953 EDMUND W. TABELL WALSTON & CO. ThIS memorandum IS not to be construed as an offer or solicihtion of offefs to buy or sell any securities From time to time Walston & Co. or any partner Thereof, m,)y have … n Hlterut in some Of all of the secuflties mentioned herein The foregOing material has been prepared by us as a m…tter of information only It Ii bUed upon information believed reliable but not lIecessarily complete, is not guaranteed as accurate or filial, and IS not intended to foreclose independent Inquiry .