The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1934-07-16

GTaQSES BcG COAO $#$M
feet and liqui- = '.|zS'-
date. Always Lewis Haney
we find a notable absence Of buy
ing on the rise, and even most
of the more bullish wait for
"dips."
Some say there is quiet accu-
mutation" The sort of buying
which is most characteristic OF
this market, however, is not accu-
mutation in the ordinary sense.
It does not represent any "oper-
ations" for the rise, but is merely
the disposition of excess funds
and hedging against initiation.
But it may have somewhat the
same effect as accumulation"
The charts show that a clear
cut double bottom" was MADE
in the averages last May. This
is not likely to be broken, unless
on very bad and unexpected
news.
Then came the upturn in early
June, which carried the averages
a little more than halfway back
to the April peak. Since then
the market, after a little setback
has moved about sideways IN a
narrow range.
Beginning July 3, however, we
can see an attempt to stage a
rise, although only 2-3 points
have been gained.
Rise Gradual
The chart formation has been
much the same as in several
rallies, namely, a couple of one
day pushes, followed by resting
"shelves." But this rise has
been more gradual and feeble
than others, and it is notable
that on Friday a majority OF
stocks traded showed declines.
It seems quite possible, how
ever, that the usual formation
may carry through. In that case,
a third push is to be expected be-
fore any considerable reaction
occurs. This would test the pre-
vious June high.
Perhaps the position OF the
market is now most like that
found in November December,
1888. or Overwhelmingly, 1882
SO. The action and the general
position in the intermediate
move" are similar.
But the market is now duller
and shows less momentum. Re
Gently, it has hardly kept up tne
indicated trend. It hangs below
the June peak.
Observers Uncertain
Most observers I talk with sum
completely. uncertain as to the
next developments, particularly In
view of the unfavorable position
of the rails and the Threatening
labor situation. Business Is OIL
more than seasonably, and gen.
eral uncertainty prevails.
But certain branches OF the
chemical industry, the dairy com.
panies, electrical appliances and
precious metals seem to be doing
well. High grade bonds seem to
have gotten to a point where they
are not attractive as investments,
and attractive preferred stocks
are harder to find.
So, under the ever-preSent
influence of fears Of Initiation
there may be a growing ten
dency for investment funds to
70 into selected common stocks.
Such a tendency will hardly be
hindered by stock exchange reg
ulatiOn. And selectivity at this
stage is not bad symptom.
Sees New Gains
I also note a number of new
higher for the year in cheml-
Gals. metals, sugar and tobacco.
Bordens touched the previous
high.
Though admitting much un-
certainty, I am inclined to look
for some further advance, at
least in stocks which would
benefit by initiation and which
are not threatened by labor tie
ups.
It seems to me that if business
gets worse, the Government will
spend and initiate, while if bust
ness gets better stocks will benefit
accordingly. ,
The New Dealers can't afford
to kill all business; business is
run for profits; profits go to
Stockholders