Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-24
Brokers' Comment

NEW YORK. November 24.-Al-
though trading rally was believed in
prospect, many brokerage house market
commentators today felt that an upturn
could only be temporary in view of ex-
isting international uncertainties, such
as German reparations.
Cusick Kent a. Coin view of the
small volume of transactions during the
past two weeks, it seems to us that
the downswing has been actuated more
by the lack of buying than by the
selling that has really appeared. With
the market so well liquidated, a selling
climax may not be necessary, with q
rally developing subsequent to the dry
ing up of selling orders. We believe the
internal structure of the market is suf-
ficiently solid to justify technical
turnabout from current levels, which
could develop after moderate weak
ness.
Paine Weber IL Co.-While technical
indications point to an early testing
of old lows, and probable establishment
of new lows, yesterdays market action
was such as to provide possibility of a
minor upturn before continuation of
the downswing. 1t should be followed
only for quick trading purposes.
Morrison e. Townsend The action
on security prices indicate an oversold
condition which could cause a sharp
technical rally.
Frazier Jelke & Co.-on the whole,
there is nothing that points the way
to any thing more than a dragging
Winter. Any recovery, unless accom-
panied by a rise in commodity prices,
will be of moderate proportions.
Shields g. Co-Unless an entirely I'M
expected powerful influence develops,
the most important market question is
where a real bottom will be reached.
Only the market itself Will give the an
swer, and until there is evidence of such
level being approached, there is no rea-
son to change trading policy based on
belief the main pricetrend is definitely
downward.
Redmond e. Cove consider the
question of ter-government debts, par
ticularly German reparations, as well
as Germany's commercial debts to for
eigners, as the cruX of the worlds
financial problems and the real OBJ
stacle to general recovery in business.
II these debt problems can be satisfac-
torily adjusted in spirit of Corpora
ton, we feel that the groundwork will
be laid for a world restoration of con-
fidence and return OF prosperity IN
til these questions are settled, or there
is reasonable assurance that they will
be we do not believe that any broad
and sustained upturn in securities will
develop.
Hornblower g. Weeks-Both the ex-
tent and duration of the decline alone
suggests the likelihood OF sharp trad
ing rally developing shortly, and we
would watch for just such develop
ment.
Jackson Bros, Boesel 81 Cove OBJ
serve that there is distinct difference
in the caliber of the selling noted In the
rails and that noted in the industrials.
Wall Street is barren OF railroad stocks
and the professional short interest is
not large. The selling is coming from
Investment sources and is being abb
sorbed gradually by other investment
sources. The principal long account re-
naming in brokerage houses is in in
dustrial stocks and the total short &C
count is unquestionably large when
measured in terms OF the floating sup
plv, We regard the short interest in
certain pivotal industrial stocks as large
enough to warrant expectations of
sharp rally in the near future on tech
nical grounds alone.
Theodore Prince & Coon the as
sumption that the unfavorable news
has been largely anticipated, it is pos
sible that the market may be getting
into an oyersold condition which might
provide a corrective rally for technical
reasons. Those who try to follow the
long side at this stage. however. may
be disappointed unless they utilize stop
protection. We would not look for
any upturn of importance until after
a period of greater increased activity on
the dcwnside.