Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-05-06
5[E[S Turned
The TIDE UPWARD
yesk's IrreguIarity Suggests
Approach Of interesting juno
ture in Market Situation

New York. Mny 6.--Today's closing
stock market furnished another con-
vincins demonstration of its comeback
y powers. The short session was prac-
Y ideally divided into two periods with
II hesitancy and irregularity at the out
set, followed in the second hour with
Substantial rallies all along the line.
The strength Of the steel group was to
Z large extent responsible for the sharp
reversal in the later dealings and the
q vigorous upturn in these shares pro-
'voked hasty covering Of the short in.
terest In other parts of the list. and
\ Brought fresh influx of outside buy
Ing orders. Besides regaining early re-
eessions n number of stocks got into
\ new high ground.
Y The bond market was firmer than at
any previous session of the week. but
dealings were light and narrow. Lib
erty issues and foreign war offerings
showed virtually no change from yestcr-
days final prices. Local fractions
again predominated. 1ntcrborough Rapid
1'nnsit 5s rose / u points, New York
Railways 5s point and Third Avenue
adjustment 5s and New York. West
chester and Boston ANS were frac-
tionally better. Other firm features in
cluded Chicago and Eastern Illinois 5s.
Geaboard adjustment 5s. Southern
Railway 5s. American Smelling IS and
United States Steel 5s.
The irregularity Of movement at.
tending the weeks markr, would sug-
sest an approach Of an interesting juno
eure in the speculative situation. I'm
less surface signs are misleading. there
1s every indication Of the market hav.
1ng passed from the accumulating stage
TO one of distribution. This Is partly
confirmed in the constant switching OF
speculative energy among the various
groups. which unQuestionably has for
ITS purpose the facilitating of profit
taking sales. The interesting question,
therefore, arises as to whether this
1uncture represents the elimination of
the constructive movement. or whether
It Is merely n resting point preparatory
70 a resumption Of the recent specula
tive extravaganza. There Is consider
able diversity Of opinion among rccog-
nized market observers as to this con-
elusion, but still a very large majority
strongly urge the reduction Of long lines
whenever there is quick upturns afford
ing q basis for realizing sales.
{ 1t has become quite evident, in all
events. within the recent sessions that
the market at the moment is more or
less psychological problem. This
would suggest. according to precedent.
q growing two. sided tendency to the
trading. which. after all, would be a
natural aftermath of an almost unin-
corrupted advance since the opening of
the current year. Prices, in fact. have
risen steadily since last July, during
which interva. there certainly has been
. revolutionary change in ownership.
proof of which Is easily to be found in
the striking growth of the brokers' debit
balances. Yet. on the other hand, up
to the moment the market has not
shown the first symptom of indigestion
which commonly is present at such
stage Of major market swing.
The constant shifting of speculative
energy into new channels, on the other
hand, supplies sufficient evidence of the
power behind the constructive move
rnent. At the same time. the brief re-
actions the market has had within the
past fortnight have disclosed an under.
Tying opposition which should not be
underestimated. 1t has been proved
quite conclnsively there are too many
buying orders just below the current
level OF prices and also too many sold.
OUT bulls, not to speak of the short in.
terest to permit the retrosrale move
ment going very far. Yet this sort Of
thing might easily continue long enough
TO clog up the machinery, resulting in
. general reaction until the load shall
nave been absorbed. 1t is because of
this probability in view that the mar.
ket appears having approached a juno.
tufe wherein considerable degree OF
uncertainty exists as to the immediate
trend Of stock values,