The Technical Take - March 3, 2014

8/12/2019 The Technical Take - March 3, 2014

1/19

Report prepared by:

Ryan Lewenza, CFA, CMT

North American Equity Strategist

Inside

Technical Commentary ......................... 2

Technical Trading Ideas ...................... 11

Sentiment Indicators ........................... 15

Overbought/Oversold Stocks .............. 16

Market Statistics .................................. 17

This Document is for distribution to Canadian

clients only.

Please refer to Appendix A in this report for

important information.

Volume 13 Highlights

The technical evidence is mounting for a short-term pullback in the

S&P/TSX Composite Index (S&P/TSX). However, any pullback is

likely to be shallow, and given that the primary trend for the

S&P/TSX remains bullish, we would look to add to positions and

increase exposure on any short-term weakness.

The S&P/TSX Capped Energy Index has experienced an important

technical breakout, and as such, we are growing more constructive

on the sector.

If the S&P 500 Index (S&P 500) breaks and remains above 1,850which is our expectation, then the pullback seen in January wouldbe over and we would expect further upside. From a seasonaperspective, March and April are historically strong months for theU.S. equity market, which increase the odds that the S&P 500 wilbreak and hold above the key 1,850 level. With the S&P 500 in along-term uptrend, we remain bullish on U.S. equities and continueto recommend a buy on the dips strategy.

The technical profile of the S&P 500 Telecommunications ServicesIndex remains bearish and we continue to recommend investorsunderweight this sector in their portfolios.

In this weeks report, we highlight Analog Devices Inc. (ADI-N)andDavis + Henderson Corp. (DH-T) as attractive buy candidatesand recommend investors trim/sell Canadian Utilities Ltd. (CU-TandGenworth MI Canada Inc. (MIC-T).

Chart of the Week The current path of the Dow Jones Industria

Average is tracking the path made in 1928-29. Does this portend an

imminent collapse in the stock market? We dont believe so.

160

210

260

310

360

12,400

13,400

14,400

15,400

16,400

17,400

Jul-12 Jan-13 Jul-13 Jan-14 Jul-14

Dow Jones Industrial Average Analog

Source: Bloomberg Finance L.P. As of February 18, 2014

DJIA 1928-1929

DJIA today

March 3, 2014


2/19

The TechnicalTake March 3, 2014

Page 2

Technical Commentary

S&P/TSX Composite Index

Our focus is and always should be on the longer-term or primary trends in the markets. However, we do, with

varying success, attempt to forecast the short-term gyrations of the markets. For example, in recent reports weve

discussed the potential for the S&P/TSX to correct in an ABC pattern, with the belief that we could see another

short-term leg lower (wave C). So far, this has not played out, but the technical evidence is mounting for a pullback

in the coming week or two; however, any pullback is likely to be shallow.

First, we note that following the 750 point gain in the S&P/TSX since the February low, the S&P/TSX is once againtrading at its upper channel line, which could provide some short-term resistance. Second, as a result of recent

gains, the S&P/TSX is technically overbought, based on a number of technical indicators. In particular, the Relative

Strength Index (RSI) reading is currently at 69.66 (over 70 indicates overbought), and the percentage of stocks in

the S&P/TSX above their respective 50-day moving averages (MA) is currently at 73, which is above the typical 70

overbought level (lower panel). Finally, we note that the MACD indicator is elevated and approaching levels where it

has peaked in recent months. Putting it all together, we believe the S&P/TSX could pullback in the short term

Levels we are monitoring on the downside include: 1) 14,000 (previous resistance, now support); 2) the 50-day MA

at 13,726; and 3) the lower channel line, which intersects at 13,650. We expect the S&P/TSX to hold above these

levels on any short-term weakness.

But as mentioned at the outset, the primary trend for the S&P/TSX remains constructive, and we would look to add

to positions and increase exposure on any short-term weakness.


3/19


Page 3

Canadian Sector Highlights

Last Trend of Trend of RSI Market

Name Price 50 DMA 50 DMA 200 DMA 200 DMA 14 Day Condition Current 2 3 4 5 6

S&P/TSX HEALTH CARE IDX 2003.73 1744.14 Uptrend 1446.44 Uptrend 67.45 Neutral 1 3 7 1 11 2

S&P/TSX MATERIALS INDEX 2403.42 2209.47 Uptrend 2163.82 Uptrend 64.36 Neutral 2 1 1 6 7 1

S&P/TSX INFO TECH INDEX 160.03 149.42 Uptrend 138.18 Uptrend 63.68 Neutral 3 6 10 9 1 3

S&P/TSX CONS STAPLES IDX 2672.44 2589.57 Uptrend 2509.71 Uptrend 66.63 Neutral 4 7 8 5 9 6

S&P/TSX TELECOM SERV IDX 1166.06 1 152.71 Uptrend 1117.94 Uptrend 56.50 Neutral 5 10 11 3 4 4

S&P/TSX COMPOSITE INDEX 14207.84 13704.34 Uptrend 13013.84 Uptrend 68.91 Neutral 6 4 6 8 5 5

S&P/TSX ENERGY INDEX 3020.90 2917.67 Uptrend 2804.33 Uptrend 67.61 Neutral 7 5 5 7 3 8

S&P/TSX FINANCIALS INDEX 2093.02 2058.45 Uptrend 1945.66 Uptrend 62.32 Neutral 8 2 4 11 6 9

S&P/TSX INDUSTRIALS IDX 2050.65 1996.10 Uptrend 1828.57 Uptrend 59.68 Neutral 9 9 3 2 10 11

S&P/TSX CONS DISCRET IDX 1484.20 1 482.58 Uptrend 1390.68 Uptrend 47.54 Neutral 10 11 9 10 8 7

S&P/TSX UTILITIES INDEX 1840.90 1795.65 Uptrend 1797.10 Uptrend 58.72 Neutral 11 8 2 4 2 10

Ranking of Weekly Momentum

Source: Bloomberg Finance L.P. February 25, 2014.

Weekly Momentum:

The health care sector continues to power higher on the back of Valeant Pharmaceutical International (VRX-T)

The sector has been near the top spot in our sector rankings, in four of the last six weeks.

Similarly, the materials sector remains strong, with the sector at the top of our sector rankings in four of the last six

weeks.

Conversely, the consumer discretionary sector continues to underperform, with the sector near the bottom of our

sector rankings over the last six weeks. Weve been highlighting this weakness in recent reports, and we currently

remain cautious on that sector.

Market Condition:

All sectors are neutrally ranked (RSIs below 70), but many sectors (health care, consumer staples, and energy) are

approaching an overbought condition, with RSIs in the high 60s.

Other:

All 10 GIC sectors are trading above their respective 50- and 200-day MAs. This is a very bullish sign, and one

factor why we remain constructive on the Canadian equity market.


4/19


Page 4

S&P/TSX Capped Energy Index

The S&P/TSX Capped Energy Index has experienced an important technical breakout, and as such, we are

growing more bullish on the sector.

The sector has been range-bound and contained by price resistance around the 270/275 level for over two years

However, in February, the sector broke above this resistance level, which we believe augers for additional upside.

One negative we see for the sector is its continued relative downtrend (lower panel). The sector is rallying in price

but is not yet outperforming the broader market. We would like to see that trend reverse, with the sector beginning

to outperform the S&P/TSX.

Given the important break above resistance, and with the sector trading above its 50- and 200-day MAs, we have

become more constructive on the energy sector. Stocks we like technically include: Enerplus Corp. (ERF-T)

Canadian Natural Resources Ltd. (CNQ-T),and Tourmaline Oil Corp. (TOU-T).


5/19


Page 5

S&P 500 Index

The S&P 500 has recovered all of its losses from January, and is now trading at resistance of 1,850. Since

November 2013, the S&P 500 has traded range-bound between roughly 1,750 and 1,850, and has made littleheadway.

If the S&P 500 breaks and remains above 1,850, which is our expectation, then the pullback seen in January wouldbe over and we would expect the S&P 500 to hit new highs. Until then, the S&P 500 will continue to trade in thistight range.

From a seasonal perspective, March and April are historically strong months for the U.S. equity market, whichincrease the odds that the S&P 500 will break above the key 1,850 level. If this does occur, we would like to seeconfirmation from the small caps, with them breaking out relative to large caps (lower panel) as this would reflect acontinued healthy risk appetite.

Overall, the S&P 500 is currently in a holding pattern, but we do believe it will ultimately break above the important1,850 resistance level and make new highs in the coming months. With the S&P 500 in a long-term uptrend, weremain bullish on U.S. equities and continue to recommend a buy on the dips strategy.


6/19


Page 6

U.S. Sector Highlights

Last Trend of Trend of RSI Market

Name Price 50 DMA 50 DMA 200 DMA 200 DMA 14 Day Condition Current 2 3 4 5 6

S&P 500 HEALTH CARE IDX 685.23 650.60 Uptrend 603.42 Uptrend 66.19 Neutral 1 2 7 2 6 4

S&P 500 UTILITIES INDEX 204.04 195.33 Uptrend 194.08 Uptrend 68.10 Neutral 2 1 10 1 1 7

S&P 500 ENERGY INDEX 637.10 629.85 Uptrend 614.17 Uptrend 61.13 Neutral 3 6 8 10 5 10

S&P 500 MATERIALS INDEX 293.13 284.91 Uptrend 267.95 Uptrend 60.32 Neutral 4 3 2 3 11 3

S&P 500 TELECOM SERV IDX 144.78 150.11 Downtrend 154.62 Downtrend 43.07 Neutral 5 8 11 5 2 2

S&P 500 CONS DISCRET IDX 527.26 514.59 Uptrend 484.69 Uptrend 60.97 Neutral 6 10 1 9 7 11

S&P 500 INDEX 1850.23 1816.51 Uptrend 1723.90 Uptrend 59.91 Neutral 7 5 5 7 8 5

S&P 500 INDUSTRIALS IDX 444.13 440.67 Uptrend 408.11 Uptrend 55.60 Neutral 8 9 6 4 10 6

S&P 500 INFO TECH INDEX 593.38 577.85 Uptrend 535.22 Uptrend 59.96 Neutral 9 4 4 8 4 1

S&P 500 CONS STAPLES IDX 429.58 430.49 Downtrend 425.58 Uptrend 54.80 Neutral 10 7 9 11 3 9

S&P 500 FINANCIALS INDEX 288.84 290.05 Downtrend 277.19 Uptrend 51.34 Neutral 11 11 3 6 9 8

Ranking of Weekly Momentum

Source: Bloomberg Finance L.P. As of February 25, 2014.

Weekly Momentum:

The health care sector continues to outperform the broader market, with the sector near the top of our secto

rankings over the last six weeks.

Cyclical sectors lagged last week, with the industrials, information technology, and financials sectors at the bottom

of our sector rankings.

Financials continue to underperform, with the sector near the bottom of our sector rankings in four of the last six

weeks.

Market Condition:

All sectors are neutrally ranked, with RSI levels between 30 and 70.

Other:

The telecom sector is trading below its 50- and 200-day MAs, which is one factor in our call to underweight the

sector in portfolios.


7/19


8/19


Page 8

160

210

260

310

360

12,400

13,400

14,400

15,400

16,400

17,400




DJIA 1928-1929

DJIA today

80

100

120

140

160

180

200



Rebased to 100


DJIA 1928-1929

DJIA today

1928-29 Redux?

The accompanying chart is getting a lot ofattention in the financial media, but webelieve the conclusions being drawn areunlikely to be realized.

The chart overlays the 1928-29 path of theDow Jones Industrial Average (Dow) with thecurrent path, and it shows a tight correlationbetween the two times series.

While at first blush the chart is alarming, webelieve theres more than meets the eye tothis chart, and that the correlation betweenthe two series will ultimately break down.

Aside from the fundamental differencesbetween then and now, our main issue withthis chart is the different scale for the twoperiods.

Clearly, with the Dow trading around 16,000

today, this is entirely different compared tothe Dow when it was trading around 300prior to the 1928-29 collapse.

If we rebase the two series to 100, and putthem in an equivalent percentage format, wesee a completely different picture.

While the gains since July 2012 have beenimpressive, they pale in comparison to therun up in the 1928-29 period. For examplethe Dow is up roughly 25% since July 2012whereas the Dow gained nearly 100% overthe similar number of trading days for thisanalog.

We believe the true picture is captured whenthe data is scaled appropriately, andtherefore, we do not believe that the stockmarket is setting up for an imminencollapse.


9/19


Page 9

Intermarket Picture

U.S. Dollar IndexThe U.S. Dollar Index continues to trade in a tight range of roughly 80 and 81.50. We believe the U.S

Dollar Index will break above resistance of 81.50, and move up to its next resistance zone of 82.5 to 83.5 in the coming

months.

U.S. 10-Year Treasury Yield The U.S. 10-year Treasury yield is sitting on an important technical level, with it resting

right above its 200-day MA. A break below this important MA would be bearish for bond yields (bullish for bond prices),

with the 10-year yield then likely to decline to support at 2.45%. We expect the 10-year yield to remain range-bound in the

coming months, but see yields grinding higher in the second half of the year.


10/19


Page 10

GoldGold continues to trend higher, following an upside break of its intermediate downtrend. Gold has rallied above its

important 200-day MA, and is quickly approaching horizontal price resistance of US$1,360/oz. For now, our call is that

gold remains range-bound between US$1,360/oz. and US$1,180/oz. A break above US$1,360/oz. would be bullish, and

would likely trigger us to get more constructive on the metal.

West Texas Intermediate (WTI) Oil WTI oil broke above resistance of $98/bl to $100/bl, and is showing strong

momentum. Seasonal trends will support the oil price as we near the U.S. summer driving season. We believe WTI oil wil

continue to trade range-bound between a narrow range of US$90/bl and mid US$100s/bl.


11/19


Page 11

Technical Trading Ideas

Canadian Utilities Ltd. (CU-T)Published February 19, 2014

Canadian Utilities Ltd. is up 10% year-to-date, however we see limited upside from current levels and would trim/selpositions.

Following the recent run-up in the share price, CU is trading at technical resistance around $39. We believe thisresistance level could contain further upside.

We note that the stock is technically overbought with a Relative Strength Index (RSI) reading of 75.11. Finally, the stock recently put in a bearish candlestick pattern called a shooting star, which could be foreshadowing

a potential short-term top in the stock price.

With CU technically overbought and trading at resistance, we believe the stock could peak soon and head lower. Weare targeting a pullback to $36 to $36.50.


12/19


Page 12

Analog Devices Inc. (ADI-N)Published February 21, 2014

We are highlighting the breakout of Analog Devices Inc. from our breakout/breakdown model*.

ADI is trading in a long-term uptrend, and is above its rising 50- and 200-day MAs. On recent pullbacks, the stockhas bounced off its 200-day MA, which is a sign of technical strength.

The stock recently broke out to a new high on heavy volume. ADIs volume trends remain bullish with its On BalanceVolume indicator trending higher and also making a new high (lower panel).

With the recent strength the stock is nearing an overbought technical condition with its Relative Strength Index a63.66 and at levels where it has pulled back over the last few months (red arrows). As such, it could pull back in theshort-term but we would buy into the potential weakness, as we see the stock continuing its uptrend. We wouldemploy a stop loss of $47, which is just below its 200-day MA.

NOTE*: Our technical breakout/breakdown model is based on a weekly screen of the S&P 500 and S&P/TSX Composite for

stocks making a new high/low over the last 90 days on volume greater than +1 standard deviation from the 90-day average

volume.


13/19


Page 13

Genworth MI Canada Inc. (MIC-T)Published February 26, 2014

Shareholders of Genworth MI Canada Inc. should be on alert, as the technical profile has weakened of late and we

see the potential for additional weakness. While MIC remains in a long-term uptrend, we are seeing early signs that the uptrend could come under pressure

Our first concern is the recent break below its 50-day MA. The 50-day MA had provided support over the last yearand half; however, this changed in early February when the stock broke through the 50-day MA and it becameresistance (red arrow). Our second concern is the recent breakdown of its relative uptrend, which had been in placesince August 2013. Weakening relative trends can often be an early warning sign of a change in a stocks absoluteprice trend.

Given MICs weakening technical profile we would monitor the stock closely. If it breaks below $32, we would exit thepositions and move to the sidelines.


14/19


Page 14

Davis + Henderson Corp. (DH-T)Published February 28, 2014

We are highlighting the technical breakout of Davis + Henderson Corp. from our breakout/breakdown model*.

DH is trading in a long-term uptrend and above its rising 50- and 200-day MAs. Recently the stock broke aboveshort-term resistance and made a new price high. The breakout was confirmed with heavy trading volume. Finally, itsrelative strength trend remains very bullish, as the stock continues to outperform the broader market (lower panel).

The stock is technically overbought on a short-term basis with a Relative Strength Index reading of 71.99, whichcould result in some profit taking in the near term. However, we would be a buyer of the stock in light of its strongprice and relative uptrends.

NOTE*: Our technical breakout/breakdown model is based on a weekly screen of the S&P 500 and S&P/TSX Composite for

stocks making a new high/low over the last 90 days on volume greater than +1 standard deviation from the 90-day average

volume.


15/19


Page 15

Sentiment Indicators

Level 1 M Ago 3 M Ago Level 1 M Ago 3 M Ago13.99 18.41 13.70 0.87 1.11 1.00

Level 1 M Ago 3 M Ago Level 1 M Ago 3 M Ago

Bulls 39.69 38.12 34.39 70 60 71

Bears 21.13 23.76 29.48

Bulls - Bears 18.56 14.36 4.91

VIX CBOE Put/Call

% of Stocks Above

200-day MA

-40

-30

-20

-10

0

10

20

30

40

50

60

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14

AAII Investor Sentiment: Bulls Minus Bears

0

10

20

30

40

50

60

70

80

90

100

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14

NYSE % of Stocks Above 200-day MA

5

10

15

20

25

30

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14

Volatility (VIX) Index

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14

CBOE Total Put/Call Ratio 5-Day MA


Investor sentiment is normalizing

from elevated levels.

The VIX is back at support

in the 13-14 range.


16/19


Page 16

Overbought/Oversold Stocks

S&P 500

Most Overbought Most OversoldName RSI (14D) Name RSI (14D)

FOREST LABORATORIES INC 89.41 CONAGRA FOODS INC 21.54

MYLAN INC 81.88 KINDER MORGAN INC 31.99

ACTAVIS PLC 81.71 QEP RESOURCES INC 32.38

NABORS INDUSTRIES LTD 81.36 EXPEDITORS INTL WASH INC 32.61

EDISON INTERNATIONAL 79.52 CABOT OIL & GAS CORP 33.89

SAFEWAY INC 79.46 KANSAS CITY SOUTHERN 33.96

PUBLIC SERVICE ENTERPRISE GP 77.77 C.H. ROBINSON WORLDWIDE INC 33.97

GARMIN LTD 77.41 WASTE MANAGEMENT INC 34.88

ELI LILLY & CO 77.32 STERICYCLE INC 36.48

XILINX INC 77.27 APACHE CORP 37.25

ALEXION PHARMACEUTICALS INC 76.80 WEYERHAEUSER CO 37.60

DIRECTV 76.40 CIGNA CORP 38.01

ALTERA CORP 76.30 DUN & BRADSTREET CORP 38.43EASTMAN CHEMICAL CO 75.43 WPX ENERGY INC 38.76

AKAMAI TECHNOLOGIES INC 75.43 DIAMOND OFFSHORE DRILLING 38.80


S&P/TSX Composite

Most Overbought Most Oversold

Name RSI (14D) Name RSI (14D)

METHANEX CORP 80.19 AIMIA INC 22.31

PRECISION DRILLING CORP 77.18 TRANSALTA CORP 22.55

SHAWCOR LTD 76.57 PACIFIC RUBIALES ENERGY CORP 27.08

VERESEN INC 74.38 DUNDEE CORP -CL A 30.59

LOBLAW COMPANIES LTD 73.81 ROGERS COMMUNICATIONS INC-B 30.71

PARKLAND FUEL CORP 73.70 BOMBARDIER INC-B 31.36

CAN IMPERIAL BK OF COMMERCE 73.47 CATAMARAN CORP 34.54

TAHOE RESOURCES INC 73.45 CI FINANCIAL CORP 34.65

CCL INDUSTRIES INC - CL B 72.73 RONA INC 35.15

CAMECO CORP 72.69 TALISMAN ENERGY INC 35.32

SHOPPERS DRUG MART CORP 72.14 SHERRITT INTERNATIONAL CORP 36.13

JEAN COUTU GROUP INC-CLASS A 72.02 TECK RESOURCES LTD-CLS B 37.28

DAVIS & HENDERSON CORP 71.97 LABRADOR IRON ORE ROYALTY CO 38.17

IMPERIAL OIL LTD 71.96 TRANSFORCE INC 38.61

PASON SYSTEMS INC 71.68 THOMSON REUTERS CORP 38.72



17/19


Page 17

Market Statistics

Region Index Last 1 Week 1 Month 3 Month YTD 1 Year 3 Year 5 Year

U.S. S&P 500 1854.29 1.24 4.29 2.94 0.61 22.73 11.89 20.39

Dow Jones Industrial Average 16272.65 1.56 4.18 1.67 -1.49 16.37 10.18 18.29

Dow Jones Transportation 7316.29 0.36 0.63 1.37 -0.89 22.38 12.99 24.03Dow Jones Utilities 515.95 -0.92 2.45 6.47 5.72 7.96 7.66 9.87

Nasdaq Composite 4318.93 1.73 5.69 6.83 3.74 37.25 15.95 25.78

Russell 2000 1187.94 2.16 5.21 4.11 2.33 30.59 13.05 25.06

Russell 1000 Value 926.39 0.98 3.88 2.40 0.07 20.40 11.19 20.15

Russell 1000 Growth 878.88 1.55 5.09 4.80 2.02 27.19 13.22 22.02

Canada S&P/TSX Composite 14214.74 0.27 4.01 6.33 4.40 11.09 0.25 11.89

S&P/TSX 60 815.73 0.29 4.05 5.89 4.29 10.67 0.17 10.80

S&P/TSX Smallcap 648.69 0.20 5.00 9.03 6.58 12.12 -5.65 13.91

S&P/TSX Venture 1019.43 0.13 7.53 9.42 9.68 -9.74 -24.65 3.49

International DAX 9588.33 -0.20 3.56 2.47 0.84 24.49 9.84 20.18FTSE 100 6810.27 -0.27 4.75 2.54 1.04 7.21 4.40 12.23

Nikkei 225 14923.11 -0.17 -0.49 -5.24 -8.90 28.39 11.79 14.42

Hang Seng 22828.18 1.19 3.64 -4.37 -2.01 -0.80 -0.72 12.26

Shanghai 2047.35 -2.72 1.14 -7.39 -2.82 -13.07 -10.88 -0.26

MSCI World 1664.85 0.52 4.38 2.46 0.44 18.73 7.27 17.31

MSCI EAFE 1925.86 -0.08 4.66 1.82 0.40 15.32 3.22 14.03

MSCI Emerging Markets 956.26 0.41 2.85 -5.41 -3.94 -8.67 -4.55 14.04

S&P 500 Sectors Consumer Discretionary 527.06 2.47 6.18 1.95 -0.16 31.93 19.47 30.80

Comsumer Staples 430.74 1.66 3.40 -1.85 -2.09 10.34 12.37 15.45

Energy 635.29 1.39 4.61 0.93 -2.01 11.37 3.22 14.28

Financials 290.55 1.10 2.88 1.03 -0.96 23.33 8.78 23.61

Health care 686.29 1.59 6.53 8.17 7.46 37.46 22.38 20.99

Industrials 445.96 1.55 3.81 3.11 -0.89 26.53 11.87 24.74

Information Technology 595.78 1.45 4.93 6.42 2.22 26.83 11.73 22.72

Materials 295.29 1.71 6.65 6.33 1.67 22.39 6.53 20.58

Telecommunications 147.88 -0.54 -1.12 -5.55 -5.23 -3.70 5.18 8.83

Utilities 203.05 -0.56 2.74 6.27 5.70 8.05 7.97 9.84

S&P/TSX Sectors Consumer Discretionary 1493.07 1.25 1.02 3.13 0.62 31.97 11.73 15.87

Comsumer Staples 2689.46 1.11 3.50 5.51 5.19 22.81 16.46 14.32

Energy 3011.77 0.23 3.63 6.39 3.52 10.49 -4.52 9.33

Financials 2097.11 0.49 4.43 1.67 0.65 13.44 5.81 17.53

Health care 1953.77 -1.52 5.50 34.51 24.67 82.58 46.05 47.41

Industrials 2049.00 1.03 3.08 3.17 2.10 20.68 14.61 21.90

Information Technology 160.92 2.51 4.89 15.10 11.79 33.80 -14.48 -2.43

Materials 2419.83 -1.06 7.17 19.12 16.89 -10.89 -15.76 1.31

Telecommunications 1171.85 0.72 0.00 0.48 1.81 1.62 10.79 12.16

Utilities 1830.16 -0.99 0.03 3.11 3.54 -6.91 -1.15 4.97Source: Bloomberg Finance L.P. As of February 27, 2014.


18/19


Page 18

Appendix AImportant Disclosures

General Research Disclosure

The statements and statistics contained herein are based on material believed to be reliable, but are not guaranteed to be accurate or

complete. This report is for informational purposes only and is not an offer or solicitation with respect to the purchase or sale of any

investment fund, security or other product. Particular investment, trading, or tax strategies should be evaluated relative to each

individuals objectives. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance.This document does not provide individual financial, legal, investment or tax advice. Please consult your own legal, investment and tax

advisor. All opinions and other information in this document are subject to change without notice. The Toronto-Dominion Bank and its

affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered.

TD Waterhouse Canada Inc. and/or its affiliated persons or companies may hold a position in the securities mentioned, including

options, futures and other derivative instruments thereon, and may, as principal or agent, buy or sell such securities. Affiliated persons

or companies may also make a market in and participate in an underwriting of such securities.

Full disclosures for all companies covered by TD Securities Inc. can be viewed at

https://www.tdsresearch.com/equities/welcome.important.disclosure.action

Company Ticker Disclosures

Canadian Utilities Ltd. CU-T 1,2,4,9,14

Analog Devices Inc. ADI-N N/A

Genworth MI Canada Inc. MIC-T N/A

Davis + Henderson Corp. DH-T 1,2,4,9

1. TD Securities Inc., TD Securities (USA) LLC or an affiliated company has managed or co-managed a public offering of securities

within the last 12 months with respect to the subject company.

2. TD Securities Inc., TD Securities (USA) LLC or an affiliated company has received compensation for investment banking services

within the last 12 months with respect to the subject company.

3. TD Securities Inc., TD Securities (USA) LLC or an affiliated company expects to receive compensation for investment banking

services within the next three months with respect to the subject company.

4. TD Securities Inc. or TD Securities (USA) LLC has provided investment banking services within the last 12 months with respect tothe subject company.

5. A long position in the securities of the subject company is held by the research analyst, by a member of the research anal ysts

household, or in an account over which the research analyst has discretion or control.

6. A short position in the securities of the subject company is held by the research analyst, by a member of the research anal ysts

household, or in an account over which the research analyst has discretion or control.

7. A long position in the derivative securities of the subject company is held by the research analyst, by a member of the research

analysts household, or in an account over which the research analyst has discretion or control.

8. A short position in the derivative securities of the subject company is held by the research analyst, by a member of the research

analysts household, or in an account over which the research analyst has discretion or control.

9. TD Securities Inc. and/or an affiliated company is a market maker, or is associated with the specialist that makes a market, in the

securities of the subject company.

10. TD Securities Inc. and/or affiliated companies own 1% or more of the equity securities of the subject company.

11. A partner, director or officer of TD Securities Inc. or TD Securities (USA) LLC, or a research analyst involved in the preparation ofthis report has, during the preceding 12 months, provided services to the subject company for remuneration.

12. Subordinate voting shares.

13. Restricted voting shares.

14. Non-voting shares.

15. Common/variable voting shares.

16. Limited voting shares.


19/19


Technical Research Disclosure

The opinions expressed herein reflect a technical perspective and may differ from fundamental research on these issuers. Fundamenta

research can be obtained through your TD Wealth advisor or on the Markets and Research site within WebBroker.

The technical research opinions contained in this report are based on historical technical data and expectations of the most likely

direction of a market or security. No guarantee of that outcome is ever implied.

Research Report Dissemination Policy

TD Waterhouse Canada Inc. makes its research products available in electronic format. These research products are posted to our

proprietary websites for all eligible clients to access by password and we distribute the information to our sales personnel who then may

distribute it to their retail clients under the appropriate circumstances either by email, fax or regular mail. No recipient may pass on to

any other person, or reproduce by any means, the information contained in this report without our prior written consent.

Analyst Certification

The Portfolio Advice and Investment Research analyst(s) responsible for this report hereby certify that (i) the recommendations and

technical opinions expressed in the research report accurately reflect the personal views of the analyst(s) about any and all of the

securities or issuers discussed herein, and (ii) no part of the research analysts compensation was, is, or will be, di rectly or indirectly,

related to the provision of specific recommendations or views expressed by the research analyst in the research report.

Conflicts of Interest

The Portfolio Advice & Investment Research analyst(s) responsible for this report may own securities of the issuer(s) discussed in this

report. As with most other employees, the analyst(s) who prepared this report are compensated based upon (among other factors) theoverall profitability of TD Waterhouse Canada Inc. and its affiliates, which includes the overall profitability of investment banking

services, however TD Waterhouse Canada Inc. does not compensate its analysts based on specific investment banking transactions.

Corporate Disclosure

TD Wealth represents the products and services offered by TD Waterhouse Canada Inc. (Member Canadian Investor Protection

Fund), TD Waterhouse Private Investment Counsel Inc., TD Wealth Private Banking (offered by The Toronto-Dominion Bank) and

TD Wealth Private Trust (offered by The Canada Trust Company).

The Portfolio Advice and Investment Research team is part of TD Waterhouse Canada Inc., a subsidiary of The Toronto-Dominion

Bank.

Trade-mark Disclosures

Bloomberg and Bloomberg.com are trademarks and service marks of Bloomberg Finance L.P., a Delaware limited partnership, or its

subsidiaries. All rights reserved.TD Securities is the trade name which TD Securities Inc. and TD Securities (USA) LLC jointly use to market their institutio nal equity

services.

TD Securities is a trade-mark of The Toronto-Dominion Bank representing TD Securities Inc., TD Securities (USA) LLC, TD Securities

Limited and certain corporate and investment banking activities of The Toronto-Dominion Bank.

All trademarks are the property of their respective owners.

The TD logo and other trade-marks are the property of The Toronto-Dominion Bank.

Documents

The Technical Take - March 3, 2014