The Washington times., 1930-06-10
BUYING
:ADVIsE::DBK
EXPERT
e..
Renewal Of Selling Seems
Likely Today Due to Stop
Loss Orders and Timidity
By THE SPECTATOR

BY The SRECIAIOh
The markets technical position
indicates a rally. But I still am
beartsh for the immediate future
Some developments, are expected
this week which may depress
stock prices below the levels
reached in yesterdays reaction.
For those who are willing to
buy stocks for long pull invest,
ment and ignore day to day
fluctuations. the market is a
real buy today. American Tele-
phone is the most outstanding
purchase, because it will kenefit
enormously from any develop
nnent in the radio, televisions
and motion picture fields.
"A radically different situation
faces day-to-day traders. 1t is
difficult to pick the top for any
stock, and it is equally difficult
to pick the bottom. At this time,
traders are faced with the prob
lem of picking the bottoms.
Il would avoid trading plays for
the time being, and take a whirl
at. long pull propositions. Pro
fesSional traders are unloading
long commitments, which is a
sure sign that these groups are
afraid of the market.
Trade news is anything but
bullish, and gives no indication
of an immediate betterment IN
business. It would seem that the
market is no place for the small
trader, and I would advise such
traders to let the market alone
for the time being. If you must
ltay in the market, buy sound
,tocks for a three months pull.
Selling Expected
With about 100 stocks touching
new lows for the year, and aver
ages slumping below the figures
established early last. month, the
outlook is not too optimistic
Trade news is generally unfavor
able. Yesterdays break unques
tionably touch. off flood of stop
loss orders, and margin calls went
ont last night to hundreds ot
tYahers. Everything points to q
renewal of selling at today'E
opening. .....
One chart student predicted
that United States Steel common
will sell down to $50 on the cur
rent movement, Such decline
would hurt the market badly.
Support Likely
Talk of support for the market
was widespread, for the street
felt that the bankers would bt
forced to turn the market up
ward in order to improve public
sentiment. Gossip about prepar
ing: the public for favorable recep
ton of the reparadons loan Is
the bunk" The public is not
Interested in the loan. Large
corporations and banks will alb
sorb the German bonds allotec
for. sale in the United States. Re
peated attempts have been made
to ,Ster the public into the bono
market, but it is impossible tt
interest spectators in Securitie!
yielding S to per cent. They
want action, and the stocl
market is the only place they car
find it. The public will be bach
in, the market before December
and. we will see another active
market. ,s
AS announced exclusively here
Case Threshing was the victim
of inside selling, due to loss o1
foreign orders and leSsening do
n1estic business. Harvester, too
was under pressure. .
The entire nation has assumed
a>pessin1istic position on busines.
and the stock market, This atti
tude: constitutes a challenge tt
business leaders and the Admins
tratien at Washington.
Amusement Shares
Senator Reeds blast against
The radio trust" was one Of the
chief influences responsible fol
the weakness of amusement
stocks, and other issues closely
linked with this group. Among
those that suffered badly were
Radio, American Telephone, Gen
eral Electric, Fox, arnel
Brothers, LoeW's, Paramount ane
Radio-Keith. Having passed the
peak of their season, the amuse
Yneat shares probably will be sub
dect to selling until August.
Reduction of dividend from s.
TO IS by Consolidated Cigar wa!
no help to the market. It didn'
mean anything in particular, bu
the list is peculiarly susceptible
to bad news at this time. Thi
dividend cut means nothing a
all as far, as the stocks ofcigarettt
producers are concerned.
@e Credit Situation
There is talk of a possible droI
in the, call money rate, to 2 pc,
cent within the next two weeks
such q reduction in the rat'
would merely be in. line with
existing conditions in the outsid'
market, and probably would hav'
little influence on the speculative
ptlblic. Professionals care littlI
or nothing about the rate. Al
for the. public. 1t will not return
tcNthe nlafket Until prices are Il
cE'2O points sbqye: sasting levels
.