The Washington times., 1930-05-29
MAY
Be SEEN
SOON
Trading Expert Believes That
Developments Are Assured
In Next Few Sessions
By THE SPECTATOR

the last half hour OF yesterdays
session only served to emphasize
the utterly liStless trading affairs
which markets of the past week
or more have been. Pivotal
issues were singled out for special
attention in the recovery in an
effort to stimulate buying opera
tions in other sections Of the
lists.
While few new favorites were
brought to the fore, there was
every indication that the market
is lacking in the type of buying
which is essential to any
sustained forward movement at
the present time.
For this reason The Spectator
thinks it wise to stay on the side
lines for while and await de-
velopmentS. That there will be
developments seems almost a
certainty and they are likely 10
occur today.
Should further reactionary
Tendencies develop as result Of
weekend profit-taking, I would
advise the purchase of standard
issues, particularly the utilities
and several of the industrial
Specialities which will be dis
cussed in the following para
graphs.
u. s. Steel
Steel common yesterday went
through one of the dulleSt periods
it has witnessed in years. The
stock moved in less than three
point range, which in itself is
unusual and only $4,000 shares
changed hands during the day.
Even the fairly optimistic trade
reports failed to bring about any
sustained demand for the shares.
The strength at the close, which
resumed in net advance OF
more than point on the day,
might be attributed to window
dressing"
Consolidated Gas is being we'll
taken up by interests in close
touch with the company S
bankers. The stock has been act
ing exceptionally we'll and points
higher.
Brokers Loans
Because of the lethargic char
acter of trading this week, it
hardly seems likely that any
sharp rise will be reported in
brokers loans tonight. AS a mat
ter of fact, I rather look for a
small decline. Many times in
the past, however, there has been
every reason to believe that a
drop would be shown, only to
have a fairly large increase re-
ported. At the present time, how
ever, 1 think the powers that be
would welcome a decline.
Foster Wheeler attracted a5ten-
ton by moving up to a new high
for the year. Present sponsor
ship of the stock is good and the
issue should have little difficulty
in crossing the high attained
yesterday.
Quiet Trading
Yesterdays session was one OF
the most quiet, and certainly
was one of the narrowest trading
periods the exchange has wit
messed in some time. There were
lapses of almost O. minute at a
time between the printing Of quo
tations of the tape during the
afternoon dealings, with the little
activity there was being confined
to a few issues. This can't keep
up much longer without some
thing giving, and I am inclined
to believe that the next major
movement will be forward.
Bullard was heavily bought yes
terday, showing a gain of 6 points
at it's high level of the session.
I hear that the move in the stock
is Just getting under way, with
many points to be had on the
upside.
Railroad Equipments
The pressure brought against
the principal railroad equipment
stocks further reflects the poor
condition of the industry. De-
spite the placing of many large
orders for equipment by the car
riers, surplus of most companies
have become substantially de.
pleted and, with most of the
managementS being conservative,
further dividend reductions in
this group seem logical.
Reports of important new de-
velopments impending greatly
aided yesterdays move in Fox.
Company is working out of it's
difficulties in fine style and the
stock ought to sell higher soon.
American Rolling Mills
Dropping more than five points
to a new low for the year,
American Rolling Mills led the
reactionary movement in the
equipments. A beariSh analysis
by a stock exchange firm was
responsible for much of the sell
ing of this stock. Interests close
y to the company. however declare
that 1t has discounted further ad,
verse developments. unless an ad.
ditional cut in steel prices occurs.
The stock doesn't look good, and