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Technical Seasonalities

eResearch Corporation is pleased to provide technical opinions on the market from a

seasonality standpoint, courtesy of Equity Clock, a division of the Tech Talk Financial

Network.eResearch also posts, daily, the regular technical opinions provided by affiliate:

Tech Talk: TimingTheMarket.

Equity Clock (www.equityclock.com) is a market analysis company that provides,

completely FREE, technical, fundamental and seasonality analysis on a daily basis via

TimingTheMarkets.com and EquityClock.com.Equity Clock’s mission is to identify

periods of re-occurring strength among individual equities in the market using methodologies presented by some of the top analysts in the industry, including those of

Donald Vialoux, author of TimingTheMarkets.com.

Donald Vialoux, co-founder of Tech Talk, is a past president and director of the Canadian

Society of Technical Analysts (CSTA). He holds the designation of Chartered Market

Technician (CMT).

Mr. Vialoux has 45 years of experience in the investment industry, including prominent positions

held at Richardson Greenshields and RBC Investments. He is the author of a daily letter on

equity markets, which is available free at TimingTheMarket.ca.

Mr. Vialoux is also the author of a weekly column published at GlobeAndMail.com that

combines technical, fundamental, and seasonality analysis. He is a frequent presenter on

Business News Network (BNN) Television. Mr. Vialoux also offers advice to the Horizons

Seasonal Rotation ETF (HAC).

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Note: All of the comments, views, opinions, suggestions, recommendations, etc., contained in the

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Equity Clock: Seasonality Analysis June 12, 2015

Equity Clock Stock Market Outlook

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Stock Market Outlook for Friday, June 12, 2015

Headline: Economic reports suggesting business activity may be struggling.

The Markets Stocks pushed marginally higher on Thursday, supported by optimism pertaining to a

strong retail sales report in the US. The headline number noted that sales increased by 1.2% last month, slightly below analyst estimates calling for a 1.3% gain; excluding gas and autos, the increase was a better than expected 0.7%.

Stripping out seasonal adjustments, sales increased by 6.0% last month, consistent with the average gain for the month of May. This report and upward revisions to previous reports shifted the year-to-date change up to the seasonal average for this

time of year; excluding autos, the year-to-date change is slightly above average through the month of May.

Equity Clock Stock Market Outlook

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Equity Clock Stock Market Outlook

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Slowly, economic reports are starting to climb out of the hole that was created in the first quarter, moving back towards the seasonal average, but some are still lagging the average trend, including reports pertaining to housing, industrial production, and

wholesale sales. Another report released on Thursday indicated that total business sales are lagging the average trend as a result of below-average sales amongst manufacturers and wholesalers; retailers are the only category to see results in line

with the seasonal average.

Conversely, despite below average sales from manufacturers and wholesalers, only the former is seeing a below average change in inventories, whether by price depreciation

or volume reduction; retailer and wholesaler inventories are both showing results in line with the average year-to-date change. This is leading to the increase in the Business Inventories-to-Sales ratio above the average trend.

Equity Clock Stock Market Outlook

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Equity Clock Stock Market Outlook

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Equity Clock Stock Market Outlook

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Equity Clock Stock Market Outlook

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The rising trend in inventories relative to sales has been ongoing for the past few years, suggesting excess supply. A strong economy generally follows a declining inventory-to-

sales ratio, as was the case in the 1990’s, although the ratio was trending lower from higher levels than the present.

Equity Clock Stock Market Outlook

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Bottom line from all of these data points is that the health of the consumer remains

apparent, but below average business activity may be sending warnings of a sluggish economy; declining business sales are the first stage of a looming recession. Both datasets warrant further monitoring.

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Equity Clock Stock Market Outlook

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Put-Call Ratio Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.84.

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Equity Clock Stock Market Outlook

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Seasonal charts A. Sectors and Industries Entering Period of Seasonal Strength Today

N/A

B. Stocks Entering Period of Seasonal Strength Today

Amgen, Inc. (NASDAQ:AMGN) Seasonal Chart

Plaza Retail REIT (TSE:PLZ.UN) Seasonal Chart

Equity Clock Stock Market Outlook

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C. Seasonal Charts of Companies Reporting Earnings Today

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Equity Clock Stock Market Outlook

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S&P 500 Index

Equity Clock Stock Market Outlook

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TSE Composite

Equity Clock Stock Market Outlook

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Horizons Seasonal Rotation ETF (TSX: HAC) ● Closing Market Value: $16.17 (up 0.19%)

● Closing NAV/Unit: $16.16 (up 0.08%)

Performance*

2015

Year-to-Date

Since Inception

(Nov. 19, 2009)

HAC.TO 6.81% 61.6%

* performance calculated on Closing NAV/Unit as provided by custodian

Click Here to learn more about the proprietary, seasonal rotation investment strategy developed by research analysts Don Vialoux, Brooke Thackray, and Jon Vialoux.

Special Free Services Available through www.equityclock.com Equityclock.com is offering free access to a data base showing seasonal studies on

individual stocks and sectors. The data base holds seasonality studies on over 1000 big and moderate cap securities and indices. Notice that most of the seasonality charts have been updated recently.

To login, simply go to http://www.equityclock.com/charts/

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BW: Information on Equity Clock is provided on the ensuing page.

Equity Clock Stock Market Outlook

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Equity Clock is a division of the Tech Talk Financial Network, a market analysis

company that provides technical, fundamental, and seasonality analysis on a daily

basis via TimingTheMarkets.com and EquityClock.com.

Equity Clock’s mission is to identify periods of reoccurring strength among

individual equities in the market using methodologies presented by some of the top

analysts in the industry, including that of Don Vialoux, author of

TimingTheMarkets.com.

Feel free to use any of the content or seasonality studies (charts, timelines, or

otherwise) presented as long as a link-back to this site at EquityClock.com is

provided.

For further information on indicators used in reports presented on this site, please

visit our reference page.

Equity Clock Website:www.equityclock.com

Horizons AlphaPro Seasonal Rotation ETF (HAC)

Interested in the methodologies and strategies presented by Tech Talk? The

Horizons AlphaPro Seasonal Rotation ETF (trading on the Toronto Stock Exchange

under symbol HAC) uses a proprietary, seasonal rotation investment strategy

developed by research analysts Don Vialoux and Brooke Thackray. The strategy’s

core position consists of broad markets at seasonally favourable times of the year

and money market securities at seasonally unfavourable times of the year. The

strategy allocates from the core portfolio to various sectors when those sectors

offer favourable opportunities. Rotating a portfolio in anticipation of these

opportunities is designed to deliver returns that are superior to a static investment

in broad markets. As seasonal periods are never the same, this investment strategy

is supported by additional fundamental and technical analysis.

For more information, Click Here.

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