Weekly journal-miner., 1916-05-03
MOVEMENT IS NATURAL,
 SAYS DYAS
LOCAL BROKER EXPLAINS THE HEAVY SLUMP IN OATMANS AND OTHER STOCKS.
(From Fridays DsiIy.)


 Prescott Brokerage Co.,, speaking yes terday of the recent break in the stock market, and referring particularly to the Oatmans, said:
 It must be apparent. to any stu dent of market conditions. that the present recession is not cnly a natural consequence but an advent that will put the market in an even healthier condition than it was previous to the break
 Not for weeks. but actually for months there has been hut one trend to tae upward - the bull movement being one of the longest and strongest known in recent times. l For months the public did nothing but buy, and even the professional traders were skeptical about taking the bear side. In all this time liqui- lation was very light Prices. natur- ally. mounted up and up until levels of from 50 10 5000 per cent above original prices at the beginning of the movement were shown by many of the industrials. war brides" and 'pecialties.
 Successful traders seldom relil- luish their holdings during bull movement, but they do watch closely for signs of break, and sell as soon as a genuine bear movement sets in. 10 buy in again at the lower figures.
 And that IS precisely what is hap pening in the present instance For weeks financial writers. market stu Tents and brokers have intimated their belief that the big industrials and war issues had reached their | nigh levels. but 1t was not until the 'rouble in Mexico and the possibility f f war with Germany gave good ground for a bear movement. that real liquidation began. Now literally
 thousands of investors are taking big profits. Naturally these heavy sales ire making for even lower prices, and for the first time in months, the bears are having an inning.
 i 'No one could expect the bull movement to go on forever: few ex- pected 1t to go as far as it has. We have tried false bull movements and found that they bring on prices In this instance, the upward movement vas natural. brought about by the huge profits occurring from war or lers. and the recession is just as nat iral, for prolit-taking must come. and Inc greater the margin of profit, the l'heavier the selling.
 Naturally. this recession has af- 'ected all exchanges as we'll as the New York exchange, which makes he prices for the country. For some weeks past the leading Oatman issues have been traded in actively on the New York curb. and the break in the market of course affected curb prices IS well. Selling down on one ex- change naturally carried them down on the coast exchanges.
 Coupled with this is the fact that me Oatmans also had been under a steady bull movement since last De cember and that many of the issues showed splendid profits over prices of ! few months ago. Traders. when outside conditions caused a break. ieured. and correctly. that the crest of that particular advance had been cached. and began taking their pro- fits. That they will buy it again at he lower levels and ride" the mar ket until the next break comes. goes without saying.
 Even in the face of the war ru- mors and neavy liquidations, it is in- teresting to note that most of the Oatmans are holding their own, which IS more than can be said for most of the New York exchange is- sues. Big Jim and Boundary Cone show the biggest losses, the formes being sold heavily by the insiders for purposes best known to them selves. Reports seem unanimous that f IS being manipulated. Boundary Cone, believe and so recommended 10 local traders. was over-priced at 70 cents, considering the showing at the property. Its present quotation bears his out
 Aside from these, the Oatmans show quotations much the same as hose prevailing at the Beginning of he break a week ago last Wednes- lay. and this, to my mind, denotes he strength these shares have with he public for if stocks will not sell If in genuine bear movement such $ this. then they must be i1 particu- arly good favor with the investing ublic.
 Tn light of these facts. for people O say that the bottom has dropped ut of the Oatman boom Is to display woeful ignorance of stock trading nd the causes which make for bull r bear movement in stocks. I glad ' risk my reputation as d seventh On prophet on the assertion that 1t ill be but matter of time until the iajority of the Oatman listed stocks Till be quoted at higher levels than