The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1934-10-22

tiles Sagged. ~
There was w. -
thus great ir- Lewis Haney
regularity. In fact. the prevail
Ing uncertainty is Illustrated by
conflicting and inconsistent move
ments among securities.
For example, bonds gained a
. little, presumably as a result of
the continued urge toward
'liquidity," safety, and regard for
"eaSy money" rates which are
the result of depression. But
railway stocks were backward.
Low priced store and movie
stocks were active and firm for
reasons which go back to Govern
ment spending, but oils were
weak because of the failure of
other Government policies.
The price of silver was up be-
cause of our deliberate policy of
injection that over valued metal
into our metallic reserve yet
gold shares were weakish
1t is evident that on the eve
of elections, the Administration
Is trying to hold out hopes to
both conservatives and radicals,
and to keep already established
inflatiOnary forces while reject
ing new initiation measures. The
result is continued uncertainty.
Everybody is being told to hope
for what he wants. but wants are
the result is doubt.
So the stock market bumps
against the ceiling set by the
August highs, and the averages
last week moved within the range
Of single point.
When one considers individual
leaders, the case is similar. For
example, U. S. Steel hardly budged
out of the 1884 range all week.
It holds at 33, but would look bad
should it close lower than that
American Can appears to be in
q critical position. The bids have
tended to lower levels, and have
disappeared above 1903. If the
price holds at 102, the market for
this stock will look good, but a
closing price below 1919 during
the next day or two would suggest
that the uptrend would be over.
Dupont has run into selling
exactly at the August top of "a.
Thus far bids held at SO, but
closing price under 9212 would
indicate reaction.
On the bull side of the mar
ket. one can say that the Presi-
dent shows signs of reacting
against radicalism. Earnings
statements thus far have been
less unfavOrable than feared.
The most active stocks from
day to day have averaged
higher. On the whole. volume
of trading has been greater
during strength than during
weakness.
On the bear side. one notes that
business news is not stimulating,
considering the season. and aside
from trade based on Government
spending. The fall activity in
industry may fairly be called
disappointing.
There was practically no carry
through" of the preceding week
squirt, and the average on Friday
fell below the upward trend line
which had been established in
recent weeks.
The nearby movement of the
market depends chiefly upon
political developments, and 1 for
one don't know what these will be.
1t does seem, however, that the
failure to go ahead is due to
absence of buying rather than to
selling pressure.
Since positions held for invest
ment or as hedge against infla-
ton are evidently being main
tanned, no bad break seems likely.
But the market has been halted
in an attempt to rise, and evident
~ needs some new stimulus if at
least little technical reaction"
Is to be avoided.
Watch the Presidents speech
on Wednesday. He will GER
tainly not attack money
changers" nor advocate infla-
ton; but unless he gives un-
qualified and positive aSsur-
ances of more conservative
policies, securities will probably
react a little. If his remarks
confirm rumOrS that he is now
needing conservative advice,
some further rise is likely.
Meanwhile, I would Just sit
tight, and continue to favor
stocks whose prices are justified
by earnings and which at the
same time would benefit by
further initiation.
T~ohouo DoSo.o NOA