Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-14
BY KENNETH S. VAN STRUM.

NEW YORK. March lathe highs
reached last November have not yet
been topped by the general stock mar
ket price level, although four definite
attempts have been made to break
through. On November %. January 4,
February and again on March The
general level, as measured by the aver
age price of group of leading stocks,
rose to peaks, but the mid-November
high was not passed
Any discussion of the general level of
prices is apt to be misleading. however,
for, entirely apart from the broad trend
of the market, each individual stock has
its trend, and no two stocks correspond
exactly as to trends.
Market Leaders.
This may be demonstrated by CLASH
flying the so most active stocks on the
New York Exchange, those which are
regarded as market leaders," according
to their individual peaks on the afore-
mentioned dates when the general trend
was highest.
In this way it will be found that the
following stocks reached their highest
levels during the first peak on Novem-
Der %: Chrysler, Sinclair, Montgom-
cry Ward, Sears Roebuck, Trans. Oil,
Mex. Seab. Oil, Texas Corp, Superior
Oil. Barnsdall A. Richfeld Oil, Marland,
Fleischmann, holster
This indicates that of the most active
stocks the two leading mail order
houses and many of the oils have either
been in a downward trend since No
vember or have made no progress.
The following issues were higher on
January than in any of the other four
occasions: Hudson, Briggs Mfg. Pack
ard, Hupp Texas Gulf Sup, S. o. N. Y.
WHY'S Overland. S. O. N. j., Gold Dust,
Graham-Paige. National Dairy Products,
Postum Cereal, Keith-Albee Orpheum
Thus many of the leading motors and
oils held up fairly well until the auto
mobile show. but have showed general
downtrend since.
On February 5 the following stocks
were higher: General Motors, Stude-
baker Consolidated Gas. General Elec-
trio, Westinghouse Electric, Armour "A,
Vanadium.
Most recently. at the March / peak.
these stocks among the so leaders were
at highest prices; Radios, Int. Nickel,
Anaconda. American Car. Int. Comb,
Victor, National Cash Register. New
York Central. National Power &,
Light Kennecott, Nevada Consolidated,
Greene Cananea, Bethlehem Steel, Pub
lie Service of New Jersey. U. S. Steel.
The Broad Trend.
These individual variances have led
many to ignore the general trend, be-
lieving that one could forget the more
basic influences affecting large
group of stocks and study specific con-
ditions pertaining to the earnings and
prospects of single issues.
Sc
conditions in the security markets are
upset 1t is quite possible to ignore
fundamental conditions. The market
has been on a comparatively sound
basis for the past seven or eight years.
Today, however. with impending diff
culties over the brokers' loan situation
there Is some danger that temporary
unsettlement of the general level might
take place.
In such a case, although many
worthy issues whose trends are very
definitely upward might continue to
grow in value the majority of stocks
would be affected by general drop.
1t becomes more important than ever
therefore, that the investor make sure
of the exact conditions existing in his
securities.
sAAA
Recently much has been said about
increasing the amount of margin
necessary to carry stocks. Only few
years ago many accounts were carried
on such small margins that early In
market decline a great deal of dis
tress selling would take place, hasten
inc and intensifying the reaction. At
the same time. small trauerS were not
so willing to hold stocks for the long
pull. Investors have only recently be-
gun to consider stocks as permanent
investments.
Today, however, when the market
goes against them. many traders sit
back and say that they bought for per-
manent investment anyway. Since they
are forced to carry much wider NAPKINS
the reactions which have required since
November have frightened comparative
ly few into selling their securities.
AS result, although the market has
experienced some sharp reactions re-
Gently. liquidation has dried up quickly
and there shas been surprisingly little
distress selling to date While the wider
margins have greatly STRENGTHENED the
immediate technical position of the
market there Is always the question OF
what would happen If the market breaks
badly enough to undermine even the
wider margins now being held. Unless
margains are wide enough to take care
of any contingency the ultimate result
might be distress selling at lower levels
than ever before, and might therefore
intensity the decline at a time where
under the old conditions the reaction
would have been over.