The Washington times., 1930-06-06
SPECULATION.
HIGH IN
MART
Expert Looks for Lower
Marks in Forenoon to
Be Followed by Rallies
By. THE. SPECTATOR

BY. THE SPECTATOR
I look for q. weak or irregular
opening of the stock market to-
day, followed by a good rally
around noon. We are in the
midst of a trading market, and
it is unlikely that either declines
or advances will get very far for
the time being.
The reaction yesterday was due
principally to short calling with
no particular beariSh news to en-
courage it. The bears merely felt
that, with buying power abso-
lutely absent, it might be a good
time to stage a raid They were
more or less successful, but
look for support and some pro-
fessional speculative buyin g
today.
Yesterdays selling came in the
face of more favorable news from
commodity markets, steel centerS
and railroad circles, SO it is
logical to expect the market to
reflect such favorable news today.
Sage Market Advice
Mort Stern, j. S. Bache and
Company partner, offers a terSe
bit of market advise, the wisdom
of which has been proved during
recent weeks. He says:
BUY them when they look
the worst. Sell them when
they look best"
One house forecasts early refu-
tation of the bearish rumors
about Curtis-Wright. I am not
recommending purchase of the
stock. It is too early for opinions
along that line.
Duquesne Gas
believe DuqueSne Gas will
have somewhat spectacular run
up within the next few days,
following the news that new
we'll has been brought in with
daily flow of 100000 cubic feet
of natural gas. Completion of
two other wells is planned within
q short time, and seven additional
wells are being drilled. The COM
pany plans completion Of the "a
mile pipe lines Of subsidiary
before the end Of the year. and
this development will subStan-
TALLY expand the present daily
production of 25,O0O,O0O cubic
feet of gas. Purchase of Du-
Quesne Gas at this time should
yield substantial profits within
q couple of weeks.
Houston Oils recent activity
and strength is based chiefly on
its prominent position in the
natural gas industry.
Professional Trading
During the last few weeks, pro-
9essional groups have controlled
the market absolutely A careful
check of dealings reveals that
} such groups have used certain
stocks on different days to lead
well-timed operations on both the
long and short sides. Foster
Wheeler and McKeesport Tin
Plate have been their faVoriteS
for the last few days. A nimble
trader might pick up quick profits
by watching for the appearance
of strength in such favorites. 1t
would not do, however, to follow
such movements too far. Be
satisfied with reasonable profits
and run out on the professionals.
Sinclair Oil is this departments
favorite to lead the next move
ment of the petroleum group.
Lehn and Fink
Selling close to its low for the
year, Lehn and Fink offered a
IL per cent yield on market price.
At the close. the yield would be
about II per cent. Nevertheless,
the stock gained 2ls on the day
and rumOrs were circulated to
, the effect that the company
would be consolidated with one
OF the larger drug combines.
There was no confirmation of the
reports. Such a merger would
give Lehn and Fink an important
outlet, through a chain system
Of distribution.
Drug, Inc, continues to receive
excellent support above 81. The
stock has been unusually strong
and active recently.
:Nyrba.
On heavy trading, New York,
Rio and BuenoS Aires lines, listed
on the curb, gained point, fol
lowing Semiofficial report that
figures for May traffic on the
company's air lines would show
80 per cent gain. Predictions
OF the company's absorption by
the most important air transport
company continue. The sponsors
of the stock, it is said, will take
it for a ride" within the next
few days. There seems to be
an opportunity for quick profits
here.