The Washington times., 1930-06-23
MART EXPERT
SEES RALLY
CHANCE
Spectator, Bearish, Advises
Sales on Highs; "Strong
Box" Selling Seen
By THE SPECTATOR

BY THE SPECTATOR
Further liquidation and lower
prices are due in the stock market
today. Several important wire
houses have received selling orders
for large accounts of stock from
traders and investors all over the
country.
For the first time since the No,
vember panic I have heard
brokers say that strong box sell.
ing is coming into the market,
meaning that long pull investors
are hQuidating securities bought
for permanent investment.
Such sellers as these are not
the type that get panicky without
good reason. They believe now
that they will have an opportunity
to buy good stocks at lower prices.
In other words, the present wave
Of liquidation is making Specu-
lators out of investors, temporarily
at least.
These investors are nervous
/ about business conditions and
prefer to dump their securities
and stay out of the market until
there is some concrete indication
of improvement in the nations
trade and industry.
There is possibility that we
may see q rally sometime during
the day. In that case. it would be
wise for those who bought stocks
Saturday on my recommendation
to sell at whatever profit they
may have.
still feel that this market war
rants buying when stocks look
worst and selling when they look
best.
Leaders Lack Support
Pivotal stocks are getting alb
solutely no support these days.
Steel common Sagged to a new
low Saturday, and at $154 q
share was only 4 points above the
1929 low established in the No
vember collapse. American. Can,
which long has shared the market
leadership with steel, displayed
more pronounced weakness than
any other important issue, sag
ging nearly 6 points to a new
low for the year. Until such
favorite stocks are given support,
there can be no sustained re-
covery.
Weakness OF. the leaders. is
further indication that the lead
ing bankers as told you some
time ago, see no reason for sup.
porting the market at this time.
Liuuidation or Short Sales?
There is some difference Of
opinion as to whether the current
decline. is brought about by gen
uine liquidation or bear selling.
OF course, there is a certain
amount of short selling, but to
me there seems to be no doubt as
to the genuineneSs of liquidation.
Brokers loans, as reported last
week, were reduced $211, 600, 600
which would seem to indicate
selling of the, best character. Not
all of the selling was for weak
ened margin accounts, however.
have the word of several brokers
that important clients have been
tightening their commitments,
despite the fact they were in no
danger of receiving margin calls.
Not even the announcement by
Electric Bond and Share interests
that they were adding to their
holdings in affiliated companies
could check the selling in Elec-
trio Power, American and Foreign
Power, National Power, American
Power and American Gas and
Electric. These issues all offer
low fields, which initiates against
support in the present market.
Copper Dividends
Anaconda Copper Company di-
rectors will meet for dividend
action Thursday. When predict
ed previously that the rate might
be cut to $3.50 from the present
81 annual rate, I heard rumofS
Saturday that the annual pay
ment might be sliced to So. Re
auctions of copper company
dividends last week were larger
than should be expected, and it
will be no surprise if Anaconda
makes q, deep cut. However, it
is said, that such developments
have been discounted amply, and
that copper shares will be firmer
after the Anaconda bad news is
out Of the way. Saturdays action
of Anaconda would seem to con-
firm this belief. The stock was
one sof the few important issues
20 record q gain, although the
advance was only " of point.