The Washington times., 1930-06-09
Sees SESSION
!
RAIDS
Professionals Take Charge
Of Trading With Little
Chance Of Good Rally
ny THE SPECTATOR

@NS " SSN
ny TINE SPECTATOR
The stock market reaction
which began last Friday assumed
the proportions Of a break in
Saturdays short session. Prices
Teceded to new low levels for the
year. weak accounts were wiped
cut in many cases. according to
word from many brokerage
houses. Margin calls went out
IN volume. promising further
selling at today's opening. My
advice to the small trader today
ts 20 stay out Of the market.
At this time there is no incen-
tive for the laymen to buy stocks.
OF course. il is claimed that lead.
ing issues are selling at bargain
prices. but IL must be remenl-
bered that nothing is a bargain
~ IL can be bought cheaper, and
there is q strong possibility that
many stocks will reach lower
levels before any pronounced up
swing begins. Buying power is
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there is no buying. stocks must
move downward. There may be
q rally today, but if so it will
be temporary. professionals will
dominate the market and /
doubt whether more than one
out Of every hundred of my
readers is nimble enough to out
guess professional traders.
Bearish Rumors
The stock market is in the
most vulnerable position since
the November collapse. For that
reason. q series of bearish rumorS
win be circulated this week, in
an attempt to smash prices still
further. The shorts have been
encouraged by the lack of support
buying Of late, and another drive
against leading shares is likely
before Thursday. BeariSh reports
that win appear may have no
foundation in fact. but they will
have their effect, nevertheless,
On the market. This is another
reason why I advise readers to
steer clear Of trading for the
time being.
Saturdays reaction must have
touched off many Stop-loss or
ders. A barrage of selling is in
sight for today'S opening. The
only thing that possibly can halt
further setback is support from
banking quarters.
U. s. Steel
The most depressing event in
Saturdays session was the reac-
ton of Steel common, which
dropped to 164, a new low for
the year. Brokers and operators
may claim that Steel has re-
linquished leadership Of the mar
ket, but it is noticeable that
when Steel breaks the market
Wags with it. I will accept Steel
as the indicator of the markets
trend.
understand that the operator
who ran the bull movement in
Case ThreShing Machine recently
Was the principal seller Saturday.
The stock broke more than 18
points. just another pool move
ment, with some one holding the
bag.
Resistance Levels
Most of the high grade stocks
are down near the resistance
levels established at the end Of
tIie decline which eliminated on
MAY Z. Chart students claim
that a recovery is due in the
next few days. They also say,
though. that if stocks break last
months lows. It will be the signal
for further reaction. Steel was
the first important issue to sag
below its May low.
WorthingtOn Pump and Vana-
&it1m steel we're the favorite tar
Rets Of the bear element. It was
90 BE- expected. for these issues
had forged ahead sharply in the
face 0f declining markets.
Poster Wheeler
Iw0uld try to pick the low for
F@ser wheeler in today'S trading
ana buy the stock. It lost more
tnan Q points Saturday. On any
recovery. this issue is likely to
shaof upEard rapidly. for Electric
Bsnd and Share interests are
iarws holders of the stock. and
tins group should be IN a position
o. knew the real value behind any
ISSUE. At any rate. I would advise
awainSt short sales in foster.
Wheeler.
I believe Coca Cola viii be one
of the first issues 70 stage q re
coEery when the market expert
ences Q turn
Westinghouse Refrigerator
Wsstinghouse Electrical Manu-
faeturing Company has followed
ne example of concerns like
General Electric. General Motors
ana GriEsnF Grunow. by expand
ana rs hne % include production
of elecfric refriEerators. Thg
We<tinEh0use RefriEerator. while
g. haE not ben marketed or ad
vErsEzsd m thf East. - beina
eEsrleEted IN ths Niddls WcSf
49, Eund Tes-Ilrs DEaleTs m
ERHsRrm Eates hars recef-ed ful
Mmm & uEt2 huE aga IN