Evening star., 1931-06-27
Brokers' Comment

NEW YORK, June 27-Brokerage
house letters reflect growing feeling
that the market has definitely turned.
Resistance to selling in the last two
days is viewed as significant, although
there is, of course, an expectation that
the speed of the advance will necessi-
tate correction.
Winthrop, Mitchell & Co.-The stock
market continues to absorb selling in a
manner that reflects strong underly-
ing support. On the theory that prices
have moved ahead perhaps too fast in
the last week, profit taking has appeared
on a substantial scale in the last two
days, and this has been accompanied
in some sections of the list by a renewal
of bearish selling. In the face of this
pressure, however, the market held
firmly yesterday and gains were main
tained in a considerable number of the
investment and speculative favoriteS.
Clark williams & Cot Is our opin-
ion that the steel market, allowing for
periods of prof1t-taking, is in definite
upward trend and that no serious set
back in prices will be witnessed until
prices have reached substantially higher
levels. We, therefore, recommend that
holdings of representative issues be
not only maintained, but that periods
mulate additional shares of issues in
representative groups.
Redmond & Co.-Developments Of the
past week, with reports Of further con-
structive measures still to come, such
as the proposed credits to South Amer
ican countries, provide the basis for
the growing belief that the market has
definitely turned for the better. The
rapidity of the recent advance, how
ever, suggests the possibility of some
reaction from these levels, but unless
some unexpected hitch develops in the
debt negotiations, these Setbacks are
likely to be technical and a sharp sec
ondary reaction delayed until after the
close of the Governments fiscal year,
June 80.
Hornblower & Weeks.-In spite OF
the extent and the rapidity of the ad-
vance the past week, stocks show no
evidence that ceiling has been reached
and in so far as the main trend of
prices is concerned, the upward trend
continues to show a surprising lack of
resistance with a good demand for
stocks appearing whenever the market
hesitates.
Pask & Walbridge-After the market
has digested the recent news develop
ments, we will probably have settling
in prices until such time as we can
begin to see evidence of increased
activity in the major industries. How
ever, we would expect the rally to con-
tinue further in the early part of next
week in sympathy with continued
strength on the European exchanges
and. particularly, If the news over the
week end is favorable.
W.. ]. Wollman g. Cove would be
inclined to await final settlement of the
European situation before making any
additional commitments.
Shields S Co.-Indicatlons of more
favorable news to come next week war
rant continuation Of policy of buying
on reactions.
Han1ershlag, Borg g. Cove believe
that the more optimistic view now gen.
orally held will in itself foster a speedier
recovery. Other than a possible 1but
improbable blocking by France of the
debt holiday, we believe that the only
serious obstacle in the way of the
market will be the publishing of second
quarter earnings statements, which
however, are partially discounted. A
large supply OF funds Is being released
for buying as a result of the new con-
f1dence as well as money heretofore re-
quired for paying up security loans
For these reasons We advocate gradual
accumulation of sound issues.