The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-19
FINANCIAL NEWS
AND COMMENT
Stocks Act Well Under Heavy
Volume Of Profit
Taking.
REACTION ANTICIPATED

The stock market opened yesterday
with another outburst Of strength IN
practically all departments. Higher
prices were the rule. steel common
making a new high record at TIN. But
the new advance ran into heavy selling.
This selling was we'll absorbed. Never
theless, II prevailed for a time, and by
MONDAY prices had scored a fairly i'm
portant reaction. The trading element
which has been playing for a eetback
helped the movement along. It soon
became apparent, however. mat fresh
sales had MOI been excited by the lower
prices ana in the afternoon the market
was bid up sharply. Several new spe-
cialties played a prominent part In tho
recovery and the whole list came hack.
Closing quotations exhibited no really
important losses anywhere.
In short. the days trading testified to
a heavy volume OF profit taking. the
heaviest. no doubt. since the latest stage
of the upturn began. There was. of
course. nothing remarkable in the APP
pearance OF profit taking on a large
scale at this time, Prices have had a
great advance and the professional ele-
ment operating on the long side Is in
cllned to take small profits and switch
Its position rapidly on the slightest eug-
eestion OF a reaction. Against this
profit taking tho market made less head
way than Il has recently. but Its main
feature was still a great a~bsorpttve
capacity. indicating nat outside buying
Is still large.
Whether this outside participation will
continue at its present rate or not II
IL impossible 90 say. but II IL obvious
that while the circle of buyers ID thus
constantly e%nlarstns there IF no prospect
Of an important reaction. In regard to
the markets immediate future II 70 In
teresting TO note that sentiment among
the professional and semi-professional
element IL 10 quite a large extent IN
favor OF a reaction.
The prevailing opinion is that even
" a reaction Is not due Il cannot be
far away. Technical conditions. Il I.
assumed, favor such a setback. II must
be said that the speculative account ls
n very one side affair. The proper
ton OF Spectators long OF stocks 10
those short of stocks IL very high. IT
fact there is probably TO short inter
est worth speaking of. On the other
hand the speculative position Is un-
doubtediy very healthy as regards mar
gins. Brokers generally have insisted
upon quito liberal protection. Conse-
quently In the ase of a break II may
be that there is little room for appre-
hension OF a great amount Of forced
selling nea this level.
Trading interest still ~conveneed upon
the industrial list. The movements N
prices here were rather MIXED. Stude-
baker ard a few other issues In which
speculative excitement has been runntne
high were undergoing a normal reac.
ton. while a new group OF industrials
including Central Leather. American
Beet Sugar, Air Broke. Tennessee Cop.
per. Inspiration and Mexican Petroleum
moved UP on aggressive buying. II was
particularly noticeable that the copper
shares were in better demand. which
tended 20 strengthen predictions OF
switch OF speculative interest into TIL:
quarter shortly. The railroads were
again neglected.
Not much attention was paid to de
velopments outside the walls of the X
change unless they possessed a rather
definite relation 10 fhe speculation
going on. Reports from the steel trad,
were still of a highly optimistic tenor
The Iron Age speaks of a continuation
OF the new demand for steel OF
behalf of the warning countries, witt
shipments abroad increasing each week
The Steel Corporation. 1t Is said. hai
| received orders for $1,000 tons Of rail
| from Russia. There vas again n vas
amount of umo and conjecture in re
gard to coming developments in tn
foreign exchange situation. 80 nar
however, II does not appear that bank
ing conferences have resulted in an!
decision regarding the methods TO b.
employed In bolstering up the eN
hange Talk of tremendous import
OF gold from South Africa n Aus
tralia did not get much credence. al
though It Is conceded that some NOR
gold may come In. Nothing furthe
developed respecting the placing OF
British Government loan in this coun
try, although It Is still n hest opinioi
that his will form no chief plan o
action.