The Washington times., 1930-06-24
RALLY SAL ES
ADV|SEDBY
EXPERT
Rough Sessions Seen for Some
With Trend Swinging Both
Up and Down Daily
By THE SPECTATOR

6y l1E OE EEAAAAOhk
AS this column is written, we
rave Just recovered from the sur
prise Of witnessing one Of the
sharpest recoveries the Stock
Market has experienced this
year, despite the fact that news
from the commodity markets and
most other sources was distinctly
bearish.
Thus We are led to believe
that the rally was the result Of
conditions within the market,
rather than any outside factor.
In brief, many market operators,
students and bankers have con-
cluded that the market has been
thoroughly sold out, and tech
nical rally is amply justified.
The technical rally was fore
cast In this column Saturday,
when / told traders to buy stocks
around their lows and sell them
on any rally early this week. I
believe the recovery is likely to
carry through today's session,
with occasional dips resulting
from short selling to test the
stability Of the market. At the
same time, think 1t would be
the better part Of wisdom for
those who bought stocks Satur-
day to sell on any further ad-
vance.
The Harvard Statement .
one Of the important reasons
for the maintenance of the rally
yesterday was the statement
from the Harvard Economic So
ciety that an early Improvement
In business is to be expected. 1t
Was pointed out that bearish-
ness within the business fold Of
ten indicates the initial stages
of an up-turn In the business
curves. With all due respect for
the opinion Of the society, / ques-
tiOI1 whether the opinion Of the
most conservative Wall Street
bankers, brokers and stock op-
orators is to be disregarded.
The concensuS in the financial
district is that we will see lower
prices, that the market cannot
be expected to begin q sustained
recovery until August, and that
the only bright spot on the busi-
ness horizon that can be dis
counted within the next couple
Of months is the Christmas trade.
General Electric Company has
passed the years production peak,
which may account for some OF
the selling. 3 However. there is
gossip that the stock will break
to $50 8 share. This is not my
prediction, but would not advise
traders to so long Of the stock
now. The same goes for WeSting-
house.
Pan-American Offer
As predicted here some time
ago, Standard Oil Of Indiana has
renewed the exchange offer by
which. stockholders Of Pan-Ameri-
can Petroleum and Transport
Company would receive seven
shares Of Standard of Indiana
for each six shares of their own
stock. At the present time, Stan
dard Of Indiana owns about 83
per cent Of Pan-American Petro-
leuIil A and B shares, its holding
having been increased substan-
TALLY under the. exchange offer
which expired last November.
One of the factors most con-
duCive to renewed strength at
today's stock market opening was
the rally of all grains, except July
wheat, at yesterdays close TO
levels above Saturdays close. The
steady decline Of wheat had been
one of the chief influences tend
ing toward q decline in securities
markets.
Steel support
It was obvious all through yes
terday's session that the bankers
and investment groups were de
ternained to prevent Steel Com
mon from breaking below the
price level Of $50, established
last November. Strong support
Was thrown into the market when
steel touched 152, q new low
for the year and that support was
basically responbile for the rally
that swept prices upward in the
best recovery seen in several
weeks. Steel common has been
q favorite target Of the bears
lately, their activities being en-
collraged by knowledge that those
closest to the corporation man.
agement had liquidated their hold
ingS near the years highest
prices. Realizing, however. tllp.i
the market would be smashed
if Steel broke It's 1929 low. its
sponsors gave it the best kind
of support. It is quite possible
that this support may mark tht
heeinning OF the reaccurnulatior
which, it has been predicted, vii
signal the start Of the next bull
market
The streets largest wire house
recently cut its margin require
fllents but this simply meant plac-
ing them on parity with those d
the other large houses. In gen
enrGl there Is q disposition u
tighten naarRin reQuirements &Ie