Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-21
'PROF|T-TAKING
CHECKED RALLY
Week's Rebound From Low
Levels Influenced by Tech
IS SnicaI Conditions

New York, Aug. I.-rurIner re-
.oyeries we're made Ia the first hour Of
,bo dealings Of today's brief stock mar
bot from the general depression of the
.orlv DAYS Of the week. Usual profit
,0r;,c. however, checked the upward
su;np and in some Of the more active
lenders caused some recession from the
h;obcr levels. During the remainder OF
the session prices iuctuated within mar
row limits. Apart from these familiar
evening up operations there was little
10 the days operations.
The market this week had the tech
nical rally which 70. many had been
declaring to which 1t was emitted;
considerable recovery was made from
tbn low levels touched in the pre-
ceding week. which in many cases were
tbo lowest of the year. The recovery
was contested vigorously by the bear
marty and for time successfully, but
these gentlemen guilty Of selling what
isn't hisn" finally worked themselves
into n trap from which they had con-
siderable difficulty in extricating them
selves, IL they have entirely succeeded
in reaching that end.
It il all simply tommyrot.. how
ever. to say. as many have said, this
technical rebound marks the COM
mcncemcnt of a bull movement. 1t Is
true the Russo Polish situation has
cleared up considerably and fears en-
tertained short time ago that this
would possibly result In retaining OF
the European war blaze have been al
most entirely dissipated. 1t might be.
said, Judging from the remarks OF some
Of the leading banking interests, that
possibly the worst of the credit strain
has been seen. On the other hand,
however. any one who makes an un.
biased and calm analysis of the general
situation will promptly recognize bull
market until after the crop movement
much show for any considerable dura-
tion or extension as cake of ice would
have in that well known region OF per-
petual summer heat.
This does not mean to imply condi-
tions marketwise are scheduled to go to
the damnation bow vows. Possibly
the situation may be better described
this way. Or. at least, as a prominent
market observer put 1t a few days ago.
He said any one prepared to go into
the market for long pull and to take
q chance Of picking up stocks anywhere
from to 10 points of the bottom prices
was sure to come out big winner. But
those who will try to scalp one, two
or three points profits in the day to-
day operations or week to week, must
be in n position to take proper
tionately larger loss.
There Is considerable doubt in the
minds OF many careful market judges
as to whether the liquidating movement
Is really completed. 1t is almost GER
tain most Of the lesser pools. especially
those who have been exploiting some
Of the so-called unseaasoned issues, have
paid the penalty for their overin-
diligence. The question il. are some of
the larger pools in any better position?
That Is, can they secure equal financial
accommodations when existing time
loans reach maturity. Chat appears to
have been the unfortunate position of
some Of the smaller pools, who had
loans called at time when considerable
discrimination was being exercised in
the examination of collateral of loan
envelopes.
Much has been said and written con-
cerning the liquidated condition of Wall
street. In so far as this applies to
marginal accounts, that is .unquestion-
ably true. for undoubtedly there has
been pronounced curtailment Of
brokers' loans. The fact, however,
should not be overlooked that the so
called public has taken very small
part in the proceedings the last six
months. except that of taking enforced
by losses. 0n the other hand pool
operations have always been con-
spicuous. 1t is, therefore, the interest
ing question, what is the real position
of these speculative combinations?
When that is answered satisfactory
then the future market may be more
easily read and more reliable measure
mcnts can be taken as to possibilities.
At the moment the immediate future is
equally uncertain and clouded as it was
u week or month ago.