The Washington times., 1930-01-27
MARKET
TREND CHEERS
INVESTORS

NEW YORK, January 81
Last week in the stock market
might well be described as the
? most encouraging since the mar
ket enjoyed it's quick rebound fol-
lowing the precipitate collapse in
prices.
The initial rebound of course
was nothing more than the nat
ural rally which inevitably fol-
lows a panic. It was purely tech
nical in nature. The last week
witnessed no such sensational Ne
copery in prices, but the very
nature of the improvement which
took place materially strength
ened the position of the construc-
tionistS.
Whether it, too, can be attrib-
uted primarily to the technical
position of the market, irreSpec-
tive of fundamental changes, re-
mains to be determined, but at
the moment the bull forces hold
sway.
The betterment in prices last
week was considerable, partic-
ularly so since only a very small
minority of individuals antici
pated more than the most mod
est price fluctuations in either
direction.
That the technical position of
the market itself contributed no
little influence on the price move
rent cannot be disputed. "Over-
sold' was the description applied
ito the market even by many
large-scale bears and the con-
structionists too ascribed their
optimism based in large part on
knowledge of the extensive short
interest.
The stock market frequently
responds to it's own internal posi-
ton without taking into account
outside factors, such as trade
trends. money rates, prospects in
general. In fact. the market
might be said to reflect it's inter
nal condition more often than it
does any outside factor; that is,
for it's intermediate swings.
One thing appears certain in
analyzing last weeks market:
The short interest was substan.
tally reduced. Incidents such as
the Fox fiaSco unnerve shorts in
many stocks, and the markets
own sustained strength likewise
induced large-scale covering.
Considerable new buying of
genuine character undoubtedly
was stimulated by more encour-
aging trade developments, al
though the general character of
such developments was of an ir-
, regular nature.
The most promising trade news
concerned the steel industry,
; which stepped up it's operations
further and induced hope of even
larger operations over the next
few weeks.
While statements made in spec
ulative quarters that capacity
operations are to be expected
were taken as eXaggeration, this
industry seemingly enjoys a con-
siderable backlog of untitled buSi-
ness Warranting maintenance of
reasonable operations.
Important people still watch the
automobile industry closely for an
index to the entire trade Situa-
ton.
Employment, which may be con-
sidered the crux of the entire
situation, will continue to dom
mate interest in the industrial and
financial world.
The Washington assurance of a
definite upturn in employment
after a steady decline since last
fall was challenged by local
authorities, but there is no doubt
but that the full endeavors of the
business men and financiers form
ing the national prosperity coun-
Gil are directed toward Stimulat-
ing employment.
Throughout discussions, whether
optimistic or peSSimistic, there
runs the same thought concern
ing money rates. 1t is unlikely
that the exceptionally easy rates
so often broadcast as in prospect
will develop actually, but that a
plentiful supply will be available
at reasonable rates is unques-
toned.