The stock market took time out Wednesday...

The stock market took time out Wednesday to digest its gains as all the major stock indices reached new highs over the past week, said Irving Katz, director of research at Thomas Green/San Diego Securities.

Caution seems to be the watchword as stock market seers have begun to post warnings suggesting that investors take profits on those stocks which have made sharp run-ups in the past few months.

Few San Diego stocks have participated in the euphoria, with the result that there has been little downside movement or profit taking in them.

Chart House Enterprises, which is listed on the New York Stock Exchange, went public last week at $13.50 and then traded at an immediate premium, going as high as $14.625. The stock dropped $.50 yesterday to close at $13.75.

The largest gainer during the past week was Molecular Biosystems, which had been selling at $16 but closed yesterday at $18.875 with no corporate announcements to account for its rapid price increase. Traders acknowledged confusion as the trading volume of the firm’s stock increased to three times normal.

Beeba’s Creations, which was favorably mentioned in last week’s issue of Business Week as a buyout candidate, recorded a new high of $15.875 Friday and closed yesterday at $14.875.

Another new high during the past week was made by International Totalizator at $5, likewise with no news released by the company.

Mail Boxes Etc., which had risen 50% in July and August, gave back some of that gain as it dropped $2 during the week. Among the small banks, new highs were registered by First National, at $20.125, and San Diego National Bancorp, at $14.