727 shift cable housing repair

I believe there is always ATF in the shift cable, but normally you just don't realize it because it is fully sealed. That is what I was told by my friend at the transmission shop, and my experience with him is that he really knows his stuff.

Looking at the factory service manual exploded diagram of this part of the 727, I don't see anything that would keep ATF out of the shift cable where it runs along under the chassis, but gravity prevents it from coming up to the carb end of the cable.