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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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Equity Clock: Seasonality Analysis February 25, 2015

Equity Clock Stock Market Outlook

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Stock Market Outlook for Wednesday, February 25, 2015

The Markets Stocks closed higher on Tuesday, boosted by remarks from Fed Chair Janet Yellen, who emphasized that the committee would consider raising rates “on a meeting-by-meeting

basis.” The S&P 500 Index and Dow Jones Industrial Average once again closed at new all-time highs, while the Nasdaq Composite closed higher for the 10th straight session, the longest stretch of consecutive gains since July of 2009.

Outside of the equity market, treasury bonds showed a swift and prominent reaction to Yellen’s testimony, jumping higher following sharp losses recorded since the start of the month. Both the iShares 7-10 Year Treasury Bond Fund (IEF) and the iShares 20+ Year

Treasury Bond Fund (TLT), two prominent treasury bond funds, bounced from around trendline support that dates back to the start of 2014. Both ETFs had become oversold over the last couple of weeks.

The treasury market now appears poised to make a run back towards the previous high as it attempts to keep the long-term positive trend alive, but seasonal tendencies may

present a headwind over the months ahead. The treasury market remains in a period of seasonal weakness that spans the months of February, March, and April. Earlier this month we highlighted the significant level of trendline resistance that the 30-Year

Treasury Bond had encountered, trading immediately lower following the test. Although the present trading channel suggests a positive long-term trend for the treasury market, past instances have shown that the price of the long-term bond has been

inclined to test the lower limit of the channel over the months that have followed a test of resistance. That would imply that the price of the long-term treasury bond could trade down to around $135 over the course of the next year.

Despite this resistance, there is no sign of a significant long-term topping pattern that would suggest a conclusion to the over 30 year old bull market trend in the treasury market. For equity investors, potential weakness in the bond market over the year

ahead could be a catalyst for higher equity prices as investors rotate from one asset class to the other.

<see charts on following pages>

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Meanwhile, turning to the commodity market, the price of Copper bounced off support and bumped up against resistance during Tuesday’s session. The industrial metal bounced from around its 20-day moving average to hit a high close to its 50-day, a

level that has restrained any rebound attempt for over six months.

The metal has been showing signs of stabilizing over recent weeks as strength in the US Dollar shows signs of fading, at least temporarily, providing a reprieve from the

negative pressures the currency has imposed on the commodity since last summer. A breakout above the 50-day may be the catalyst to allow for a run towards trendline resistance around $2.90; longer-term trendline resistance can be seen around $3.00,

also the level of previous horizontal support that was broken late last year.

The price of copper has traded below its 200-day moving average for a total of 169 calendar days, the 10th longest run below this long-term average over the past 25

years; when price trades too far below significant moving averages, such as the 200-day, for an extended period of time, a reversion to the mean typically follows. The 200-day moving average sits right around the broken level of horizontal support at $3.00.

Copper seasonally trades higher between now and May.

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<continued>

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During Tuesday’s session, the S&P/Case-Shiller Home Price Index provided the last read of house prices in the US for 2014. The report indicated a non-seasonally adjusted year-over-year increase of 4.5%, beating analyst estimates calling for a 4.2% increase.

The print was slightly below the average year-over-year gain of 4.8%, based on data from the past 38 years.

Following a stronger than average spring and summer, house prices levelled off near

the end of last year, a trend that is likely to remain evident in reports for January and February following the weaker than average existing sales report released on Monday. Housing reports continue today with New Home Sales for the month of January.

<continued>

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Put-Call Ratio Sentiment on Tuesday, as gauged by the put-call ratio, ended neutral at 1.00.

<continued>

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Seasonal charts A. Stocks Entering Period of Seasonal Strength Today

Badger Daylighting Ltd (TSE:BAD) Seasonal Chart

Dillard’s, Inc. (NYSE:DDS) Seasonal Chart

FactSet Research Systems Inc. (NYSE:FDS) Seasonal Chart

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Niko Resources Ltd. (TSE:NKO) Seasonal Chart

Ensign Energy Services Inc. (TSE:ESI) Seasonal Chart

Finning International Inc. (TSE:FTT) Seasonal Chart

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EOG Resources, Inc. (NYSE:EOG) Seasonal Chart

CenterPoint Energy, Inc. (NYSE:CNP) Seasonal Chart

Apache Corporation (NYSE:APA) Seasonal Chart

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B. Seasonal Charts of Companies Reporting Earnings Today

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S&P 500 Index

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TSE Composite

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Horizons Seasonal Rotation ETF (TSX: HAC)

● Closing Market Value: $15.96 (down 0.19%)

● Closing NAV/Unit: $16.00 (down 0.06%)

Performance*

2015 Year-to-Date

Since Inception (Nov. 19, 2009)

HAC.TO 5.75% 60.0%

* 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.

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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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