The Washington times., 1930-06-12
CLIQUE
OBSERVED IN
OPERATION
Expert Says Bankers Will
Withdraw Support Leaving
Lists Even More Dangerous
BY THE SPECTATOR
is futile Tn swim AGAINST Il

-
It is futile to swim against the
current. This applies to the
present market. It is dynamite,
especially to the small trader
with limited means.
Stocks banking support at their
lows yesterday, it is true, but I
question whether there is any
carry-through to this. believe
this support was only defensive,
and that bankers were forced to
come through at the crucial mo-
ment to prevent q repetition Of
the November debacle.
I hear that many Of the mar
ket's old friends who had almost
invariably been listed on the bull
side had become disguised with
the sickly action of stocks and
had turned to the selling side,
aiding a powerful bear clique in
sending prices tumbling.
Many stocks are undoubtedly
on the bargain counter and will
sell much higher before the end
Of the year. I believe, but don't
attempt to buy them unless you
are amply margined and are pre-
pared to average your holdings
on the scale down. And pick
only the best and seasoned mar
ket leaders-avoid the dogs" and
the speculative, volatile issues.
The Break
It is putting it mildly to say
that the Street was disappointed
in yesterdays break. In reality
Wall Street felt as though it had
been hit below the belt, for every
one was looking for a continue
ton of Tuesdays rally. Even the
wisest frankly admit they can't
figure the market out, for it is
shattering precedent day by day.
BeariShneSS is so thick around
Broad and Wall you could almost
cut it with a knife.
Drug Inc, was one Of the hand
full to show any real resistance
to the deluge, holding stubbornly
around 80. It is a high-grade
stock. and recently started large
expansion program. Earnings
are good, and it ought to sell
higher on any upward turn in
the market.
Morgan Buying
"Morgan's buying Steel" the
magic words were flashed from
the floor Of the Exchange when
everything was darkest yesterday
and dispelled the pail Of gloom
that hung about board rooms.
The house on the corner came
through with bids at 161. At
that time Steel was selling on
the tape at 1904, Can at 100,
United Corporation below 81, Con-
solidated Gas around 118 and the
market had all the earmarks Of
another November crash. A mo-
ment later Steel was 164 bid on
the floor, leading the rest Of the
market in strong rally.
It was 20 minutes before the
close, and the market semed to
have no bottom, when one dis
gusted customers man said
wearily, "Well, Telephones a SO
stock, it ought to be a buy at
par" '...'...,.-. ...'....-..
The Rails
The weeks Shrinkage in car
loadings had no influence on
stock prices. 1t was simply taken
as a reflection Of the fact that
business is bad, and every one
knows 1t. No distinct upward
turn in freight loading is ex-
pected until late summer, when
the crops begin to move. Earn
ings should show corresponding
increase, and though net of most
rails will undoubtedly be far be-
low last year, the dividend rates
of the prime investment issues
should be amply covered
Canadian Pacific closed up a
fraction yesterday, real achieve
ment, and equaled by few issues,
1t is one Of the best of stocks,
and should improve in price when
the turn in the rails comes.
Beware the Ides
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