New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-20
Technical Rally
In Stock Market
AS Shorts Cover
List Reacts From Oversold
Condition and Many Is
sues Rise Sharply; Trad
ing on Light Scale

The technical rally" about which
the Street has been talking for two or
three days took place at the Exchange
yesterday, when stocks enjoyed q fair
ly' vigorous recovery on extremely
! light trading
The market was actually one of the
offering increasing resistance to bear
! ish pressure, and the professional
spectators, taking cognizance of this
fact, concluded yesterday the time had
come to switch their position. Prac-
tically all the buying of stocks which
Impaired the better tone to the general
list came from the short interest. In
other words, the rally was nothing
more than natural reaction to an
oversold condition, and represented
little in the way of constructive effort.
The market performance was chiefly in
teresting because of the comparatively
small volume of buying required to lift
prices from their low levels.
The market wa sactually one of the
dullest hour sessions in weeks, vet
the rebound in many industrals
reached quite large proportions, indi-
eating that the professionals were find
ing 1T necessary to bid for stocks in
order to cover their requirements But
the TACT that the market Quoted down
as prices rallied did not create a good
impression.
The Street had less to worry about in
the domestic credit situation. Call
money, seemed to be fairly plantiful
around Z per cent, whereas on other
days this week it had shown tendency
to work toward higher levels. This
evidence of temporary realization no
doubt. prodded the professionals into
covering portion of their short lines.
although obviously there has been no
alton so far as fundamental condi-
tions go.
BANKERS assert that the Improvement
IN the railroad situation has released
large amounts of side tracked credits.
but even Sc they do not see any signs
OF impending relaxation 1t may be
SAID, however, that the best banking
OPINION seems to be more optimistic
than few weeks back over the ability
of the banks to take care Of the abnor.
NAL demands of the crop-moving sea-
son nov pressing upon them.
Liquidation in the commodity mar
Kets Is apparently proceeding aoace
ana cannot fail in the long run to have
beneficial effect in that it will tend TO
relieve further the strain on credits
ana so aid IN the process of def1ation.
Another slump occurred in the COM
monty markets yesterday
One of the noteworthy features of
the session at the exchange Yesterday
was the vigor of the recovery in a
number OF industrial shares which had
on earlier days this week been made
me target of concerted bear effort.
Hallway equipment shares, notably
BALDWIN Locomotive, were especially
conspicuous. These shares had been
depressed since Monday on selling
that obviously originated in profession
pose of seeking profits on the short
side. But yesterday they came back
strongly and Baldwin Locomotive, which
on Wednesday had fallen within a frac
/ ton of par. rebounded to 1O5. American
Car and Foundry, American Locomo-
tive and Haskell G. Barker were other
PREPAYMENT features of the group.
Inc recovery did not stop with the
equipments, however, but extended to
all issues which have been more or
less depressed of late.
About the only weak group com
prlsed the sugar shares, which were
again unsettled by the generalization
existing in the raw sugar market. Su-
gar is one commodity which is under
going rapid decline, and it is only nat
uial that the SHARES OF the producing
and refining companies should reflect
this process.
In the motor group Chandler stock
stood out as a point of conspicuous
strength, following declaration of the
regular dividend and the publication
OF an optimistic statement relative to
the operations of the company and the
state of the motor car industry in gem
eral. OIL shares were led in their re-
covery by the Mexican issues.
Continued weakness in the foreign
exchanges seemed to have caused lit
tie concern in stock market circles, and
sterling rates broke below $3.50 for
a net loss of about 3 ceAts in the
pound.
This is a season Of the year when
there is large outward movement of
American wheat and cotton, and the
market is apparently having difficulty
in absorbing the cotton and grain bills
arising out of such transactions. SO
far the foreign exchanges have failed
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