Early Market Rally Fades, Leaves Stock Pattern Mixed: Trade Quietens
NEW YORK, Dec 21ÛÓ The record high short interest powered the stock! market to a sharp one-hour j rally this morning, but the j list spent the rest of the day1 trying to give it all back.</br></br>Analysis labeled the 20.9 ÐÊ million-share short interestÛÓj equivalent to almost twoi daysÛª average trading ÛÓ a| very strong technical indica-| tion and the traders went' along with that for about 60 minutes. By that time, the Dow .Jones industrial average j was ahead seven points, the1 ExchangeÛªs tape was still run-, ning late and advancing stocks! held a lead of more than two-to-one over declines.</br></br>Missouri-Kansas-Texas Rail-!wayÛÓthe Katy roadÛÓjumped jl% points to 18Vi on w'ord J that the IRS has ruled favorably on its proposed diversification program.</br></br>Hooker Chemical and Udy-ilite Corp. both moved up after jshareholders approved their mergerÛÓpending IRS approval. Hooker closed at 42, up Vi, and Udylitc was 38Vi, ahead</br></br>The chairman of James Tal-colt denied rumors that the company is nearing a merger or that diversification steps are under way. The stock finished third on the actlive list, off :is at 20%. Talcott jumped 3-'s points on Wednesday.