The Washington times., 1935-10-28
STOCK RISE
EXPECTED BUT HANEY
ADVISES CAUTION
By LEWIS HANEY


Although there was good deal of regularty the stock
market forged ahead last week for average gain Of be-
tween and points. It made high average, not only
for the move but for the period of since 1881
To my mind this strong evidence that the stock market
at least coming back and headed for bull mar
ket The only things that could stop it are ~ more
drastic New Deal policies, (2) general European
neither Of these caamies at present likely to
overtake u.s. Mr. Roosevelt the attitude of claim
ing credit for the expansion of business activity He thus
puts himself in the role of sponsor From the
next election will be the dominant thought in what done at
Washington, and believe that the party in power will want
good business
The total volume of trading for the week the largest
In long WHILE and among the most active stocks all gained
Outstanding in activity the automobile stocks, and
General Motors and Chryser than points, while
several lowerpriced motors participated.
Other leading groups the oils and the lowpriced
utilities Phillips and Pure Oil large volume. So did
Commonwealth and Southern Columbia Gas and Electric and
United.
ALI this the more notable in that there was good deal
OF bearhness and caution at the beginning Of the week
Evidences of dsrbuve selling clear Yet the market
merely hesitated' with only one reactiOnary day.
AS matter of fact this caution is not bad symptom.
1t probably nsures against any very bad break.
At the time there indications that the larger
operators have their doubts and that until the outlook for
the spring clearer increased resistance rise may
expected would say that unless abandon ourselves
sheer initiation, considerable rreguary reasonable
pectaton pending the coming of Congress and the develop
1nent Of the motor
It seems to be an excellent idea for the more
tive investors to take their from the leading steel stocks
u s. Steel and Bethlehem through their previous tops
may have that the market to have the sound
basis of rising profits in the basic industries
As yet u s. Steel while it has gone through the trouble
4647 area, sticking at about 475s If it goes through
48A decisively, very buish indication would be given
On the bear sde say that the public is clearly
ing and that brokers loans have finally turned The
leaders the active stocks becoming less impressive
The market BROADER and the percentage of activity in the
more conservative leading stocks has fallen off,
Eventually climax will be reached in the current
and sharp technical reaction" will ensue.
As the spirit Of caution dmnishe the danger Of such
reaction grows.
But yet these symptoms only beginning to appear
Apparently the SEC merely going to make market manpu
ators somewhat cautious without at all preventing active
sponsorship" for issues which good to them
&c. aside occasional technical difficulties what is to
keep stocks from selling higher?
As long money low, while get fairly
yield As per stocks stocks will be bought
matter the pceearnngs ratio At least this true while
the breathing spep lasts)
AS long as the world believes that America is inevitably
headed for initiation what brand may be- the world
will buy American stocks .,
Just stick those which enough to to per cent
don't buy things either just because they are low priced
inst because thew moving fast. Remember 1020