Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-02-13
Excitement Rules
Markets, Not Reason

The tendency OF markets to be swayed
by sentiment rather than conservative
Judgment when an intense buying or
selling movement is in progress, is re
sponsible for the extreme movements
either up or down, according to the fol
lowing market letters reviewing the stock,
wire from the New York and Chicago
offices of Thomson & McKinnon, brokers'
"Stocks-In the midst of big trading
either during buying movement or
liz -idatlon, Fundamentally are generally
overlooked or its Importance minimzed
Excitement displaces reason. That is why
the market moves extend too far. Prices
move too high or too low. l. is probably
because of this that a period OF dull
ness frequently fntervenes between the
elimination of one movement and the be
ginning Of the other, and 1t is only
during a period of dizziness that a mar
ket and it surroundings can be properly
surveyed and Judgment formed. For a
long period we have not hesitated to
point out that change In business Is
tefore us-thRt a period of reduced
profits confronts the commercial world,
and It is because Of a more general re
declined as 1t did. The stringency In
money was an incident which accelerated
the decline. Confidence has been shaken
Sentiment Is as doubtful today as It was
confident before. Liquidation may not
be complete; rallies may be only tenn
porary, but would certainly be some
what cautious about selling stocks on
the breaks now.
"Corn-Another disappointment in the
expected increase in receipts Of corn, to-
gether with disposition Of the farmer to
withhold offerings, revived a friendly
feeling toward prices. Deferred deliveries
have also been helped by strong cash
market. Prices lie to &c higher and the
February increased it's premium over the
May. Shippers seem to have many old
sales and are moderate buyers of cur
rent receipts against these preTious con
tracts. 1t is possible that t-emand from
this source was sufficiently large to keep
cash market strong, but it must be re
membered that eastern cars arriving from
the west can not be reloaded for ship
ment. Also remember that 20 per cent of
all empty cars in shape for loading out
are taken by the Grain Corporation for
moving wheat. So long as the present
strength in the cash market exists, it
will be reflected in the deferred deliv
cries. but we believe that all commodities
are approaching q period of defiation to
some point which corresponds to foreign
financial conditions, We do not expect
this adjustment to be rapid, but feel
that the patient seller has the logic of
the underlying situation In his favor.
"0dts-Receipts of oats are even more
disappointing than in the corn. Domestic
demand for deferred shipment continues
on a fairly liberal scale. This market has
q number of rather influential friends
demand from which source together with
premiums for the spot article, keep I'M
dertone strong. We anticipate a ref1ec-
ton of corn market will appear in this
market.
"Provisions-There was considerabl
short covering in provisions in sympathy
with the action of grains and early
strength in the hog market. Hogs closed
weak with all the early advance lost.
Leading packers were again sellers This
item has been pointed to quite fire.
quentlv in the past. 1t is of Importance
in that it shows the deferred deliveries
to be the most favorable market for the
manufactured article"