Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-11-25
|[6IRER SINKING
] SPELL IN STOCKS
.....u,smsnts Of Existing Stu
.,,ou obtainabIe From-Two
In Distinct Angles

A.. yorh. Nov. 2j.--Today's stock
New ,.mS"rci another bad sinking
eaise. .hich followed a mixed and con.
Deil, M"n;nu. md which before the DC.
fueed .s checked carried prices 81 the
dinc WIZ .%orcs OF botl, the industrial and
aetive s"J Jiyisions down from to- .
failloau uurScr last nights closing level.
po,m.s ""ntire market proved 10 be SUR
Ih,,, Ihe soft, considering the heavy
t'snSi,..,;on OF security values OF the
tepreS.c" weeks. There was heavy sell
~ s 10Th accounts. with every Cvi.
ne io ~ renewed liquidation of speculn.
aence ,,,,ts VI on n heavy scale. No ef.
eve a,nuarcntly was made to stem the
fon nn"rv hr currents and support was
~nns!ps"nnointmcnt was found in the
D's"pf rho acquisition Of the Mid
Ri"I H. " rho bethlehem Steel Corpora.
mk ":,j thnt incident together with
ton, .rorable week end reports Of the
ns ns,.ntiie agencies failed to have the
,.'.iotinv influence expected. short
S,., Sn.s,ms in the lust half hour afforded
eov.s,sr eonorsry support and checked the
Imnrpmard plunge, but the recovery was
ssr.,ish ani the final prices were not
y. from the low Of the day.
" There is undoubtedly in circulation
,.n,ered reports and propaganda liter.
'.,.o concerning the current market
s.!imustion .iut which, when analysed. would
.s.rssi monumental misstatenents ana
,,.sline of conditions. producing alto.
.!stSsr maze Of deductions equally
.C,.iesdinr as that accompanying the
srsi stngps Of the constructive move.
sssnt which ran on the rocks In the
After ,,hs mart Of October. Within the last
three weeks the market has passed
,hroush one of the familiar periods Of
snnre6ensiOn and uncertainty which
rsnaily crop out during the progressive
%sses of the adjustment Of over.cA.
tsnded speculative conditions.
In such periods the measurements or
the market are obtainable from TWO
Ss,inct angles. The one accepted, OF
course, Is the more sympathetic with
contemplated ventures or adjustment Of
s,istinr commitments. The two angles
,sierreI to consist Of appraising the
msrket position from q strictly gain.
Nins viewpoint. The other, that of
attempting a horoscope of the possibili-
,ies OF the future, or the long. distance
From the first angle. surface signs
vould seemingly warrant Il temporary
shift 10 the other side Of the ledger.
There is no doubt the recent shake.
down was effective in cleaning out many
al the weak spots. This would seem.
inrly indicate there had been n FAIR
sized reduction in over. extended broker
loans. in other words, the loss Of
practically one.third Of the advance
scored in the fourteen months upward
swing suggests elimination of con-
siderable portion Of the tophenvy mar
FINAL loan accounts. and Il similnr cor.
iection Of the over. extended pool opera.
tons.
Support of this theory is found in the
diminishing volume Of liquidation oh.
served in the latter part Of the week.
Technically. this created what the
Street is pleased t" call n temporary
'oversold" condition. That Is to say.
the strictly gambling element Of the
professional and semi. professional Gle.
ment Of the traders has apparently
over. reached it's position. the same
Is the bull following did in the third
.tase Of the upward swing from August
10 the middle Of October. Therefore.
from gambling angle. the market.
from all appearances and precetlents,
would seemingly be working into q po.
ttion where a sharp and quick rebound
might take place ut most any time.
4 diagnosis of the other angle is Il
much more difficult task. Deductions
~ this view must be subjected to the
highest degree of discrimination and the
most careful analysis Of past. present
and future conditions. In the first
place. because market in the adjustment
process becomes temporarily technically
cverplayed does not. by any means. in.
d!cate n resumption Of an interrupted
previous movement. Stocks in which
still powerful pools have interest
stocks in which the selling pressure has
for the moment been Ovcrdonc and
stocks in which such obviously con.
.tfuctivc developments as stock divi.
dends and so forth, are the ones In
which biz rallies are to be expected.
As TO the movement Of the main body
M stocks any ones guess is rs good
y another. However. it il admitted
BY recognized authorities who reach
their decisions from careful study Of
lctual conditions rather than the In.
nuenre OF the upward or downward
wares and curves Of the chart system,
The average level Of prices of the III.
,ustrlal division. for instance. is still
!oo high considering that the margin oi
'front.' Is not satisfactory in a number ni
eading Enterprises. On the other side
good many profess the most profound
lmaz"mant at the wcakne of the rail.