The Technical Take - July 29, 2013

7/27/2019 The Technical Take - July 29, 2013

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Report prepared by:

Ryan Lewenza, CFA. CMT

V.P., U.S. Equity Strategist

Inside

Technical Commentary (Pages 2 9)

Technical Almanac Trading Ideas

(Pages 10 11)

Relative Strength Analysis (Pages 12

15)

Sentiment Indicators (Page 16)

Overbought/Oversold Stocks (Page 17)

Market Statistics (Page 18)

This Document is for distribution to Canadian

clients only.

Please refer to Appendix A in this report for

important information.

Volume 2 Highlights

Given our expectations for a continued range-bound trading

environment for the S&P/TSX Composite Index (S&P/TSX), weanticipate that the S&P/TSX will peak soon, and head lower in the

following weeks.

From a seasonal perspective, we note that August is the third-worst performing month for the S&P/TSX, with an average monthly

loss of 0.36% since 1990. Additionally, there is a below-average

probability (52%) of a positive monthly return in August.

The S&P/TSX Capped Financials Index is overbought with an RSreading above 70. We therefore expect some near-term profit

taking within the sector, possibly seeing the S&P/TSX Capped

Financials Index declining into the 200 to 202 range, which

represents the intersection of the uptrend line and previous

resistance. While we expect some short-term weakness in the

sector, we remain long-term bullish on Canadian financials, given

its continued strong relative strength.

The intermediate and long-term technical trends for the S&P 500

Index (S&P 500) remain positive, especially in light of the new all-

time highs, and as such, we remain long-term bullish. In the short

term, we believe that the S&P 500 could experience some backing

and filling as the S&P 500 registered an overbought condition with

an RSI reading near 70. We are looking for the S&P 500 to pul

back to its rising 50-day MA, which currently intersects at 1,643.

Gold has bounced back sharply, rising nearly 12% since the Julylows. The rally in gold can be attributed to more dovish comments

by the Fed over its asset purchases, which has led to weakness inthe U.S. dollar, and in turn provided a boost to the price of gold

Sticking with our technical discipline, we see the recent bounce in

the gold price as short term, with the technicals remaining bearish

in our view. We see US$1,336/oz. as a key technical level, and

only a break and two day hold above this level would alter our

current negative view.

In this weeks report we highlight Canadian Western Bank (CWBT) as a trim/sell, and PNC Financial Services (PNC-N) as an

attractive buy idea.

July 29, 2013


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The Technical Take July 29, 2013

Page 2

Technical Commentary

S&P/TSX Composite Index

In The Technical Take dated July 15, 2013, we predicted that the S&P/TSX Composite Index (S&P/TSX) would

likely find resistance at the 50- and 200-day moving averages (MA), which both came in around the 12,450 level.

The S&P/TSX had been adhering quite well to its 50-day MA, providing support in February and March, and then

resistance in June. We were incorrect on this call as the S&P/TSX easily broke through this level and has quickly

moved up to the top-end of its 2013 trading range around the 12,800 to 12,900 range.

With the 7.5% gain since the June lows, the S&P/TSX has become technically overbought in the short term, as it

recently registered a Relative Strength Index (RSI) reading of 70.

Given our expectation for a continued range-bound trading environment for the S&P/TSX, we anticipate that theS&P/TSX will peak soon, and head lower in the following weeks. Additionally, we see the potential for some near-

term profit taking in Canadian financials, which will likely drive the expected pullback in the S&P/TSX, given the

sectors 35% weight in the index.

From a seasonal perspective, we note that August is the third-worst performing month for the S&P/TSX, with an

average monthly loss of 0.36% since 1990. Additionally, there is a below-average probability (52%) of a positive

monthly return in August. Overall, we continue to expect the S&P/TSX to remain range-bound through the summer and therefore recommend

a more nimble trading approach, buying at support (11,800-11,900) and trimming positions at resistance (12,900).


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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 CONS STAPLES IDX 2599.58 2389.20 Uptrend 2185.47 Uptrend 72.12 Overbought 1 10 9 5 1 2

S&P/TSX MATERIALS INDEX 2187.68 2171.88 Uptrend 2652.23 Downtrend 63.95 Neutral 2 1 11 9 11 11

S&P/TSX FINANCIALS INDEX 1889.70 1 817.81 Uptrend 1778.48 Uptrend 71.57 Overbought 3 8 7 4 7 4

S&P/TSX COMPOSITE INDEX 12679.23 12407.04 Uptrend 12449.68 Uptrend 68.87 Neutral 4 5 6 7 9 7

S&P/TSX UTILITIES INDEX 1852.19 1856.66 Downtrend 1909.64 Downtrend 55.82 Neutral 5 3 10 2 10 3

S&P/TSX ENERGY INDEX 2758.87 2712.60 Uptrend 2691.47 Uptrend 67.83 Neutral 6 2 2 8 6 5

S&P/TSX CONS DISCRET IDX 1344.37 1269.77 Uptrend 1143.12 Uptrend 71.71 Overbought 7 6 3 1 3 6

S&P/TSX INDUSTRIALS IDX 1702.38 1702.76 Downtrend 1594.21 Uptrend 50.49 Neutral 8 7 4 3 5 10

S&P/TSX TELECOM SERV IDX 1043.26 1110.78 Downtrend 1106.67 Downtrend 32.93 Neutral 9 9 5 11 8 9

S&P/TSX HEALTH CARE IDX 1279.64 1218.56 Uptrend 1047.73 Uptrend 54.23 Neutral 10 4 1 6 2 1

S&P/TSX INFO TECH INDEX 123.41 131.36 Downtrend 118.26 Uptrend 27.88 Oversold 11 11 8 10 4 8

Ranking of Weekly Momentum

Source: Bloomberg Finance L.P. As at July 24, 2013

Weekly Momentum:

The consumer staples sector jumped up to top-spot in our sector rankings, with Shoppers Drug Mart Corp. (SC-T)

driving the index higher, following news of a merger with Loblaw Companies Limited (L-T).

Materials have recently bounced back following weeks of heavy underperformance, with the sector near the top of

our sector ranking for two consecutive weeks.

Financials were up strongly last week, coming in third in our sector rankings. Lifecos continue to trade well on the

back of higher trending interest rates.

The information technology sector remains near the bottom of our sector rankings, as Blackberry Limited (BB-T

shares remain under pressure.

Market Condition:

The consumer staples, consumer discretionary and financials sectors are currently overbought with RSI readings

above 70. The information technology sector is oversold with RSI reading of 27.88.

Other:

The utilities, telecommunications and materials sectors remain below their respective 200-day MAs, which is one

reason that we recommend an underweight in these sectors.


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S&P/TSX Capped Financial Services Index

Canadian financials remain on a roll with the S&P/TSX Capped Financials Index recently breaking to new highs.

The sector came under pressure in June as the S&P/TSX Capped Financials Index declined down to its rising 200-

day MA. The index held the important long-term MA and went on to make new price highs. The sector is now overbought with an RSI reading above 70. We therefore expect some near-term profit taking

within the sector, possibly seeing the S&P/TSX Capped Financials Index declining into the 200 to 202 range, which

represents the intersection of the uptrend line and previous resistance.

While we expect some short-term weakness in the sector, we remain long-term bullish on Canadian financials

given its continued strong relative strength (lower panel).


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S&P 500 Index

The S&P 500 Index (S&P 500) has shaken-off its June blues and quickly recovered its losses, reaching all-timehighs in July. We believe that contributing to these gains is the seemingly altered position by the U.S. FederaReserve (Fed) that tapering of its asset purchases could be pushed out later than the anticipated September Fedmeeting. Regardless of the why behind the continued market strength, the intermediate and long-term technicatrends for the S&P 500 remain positive, especially in light of the new all-time highs, and as such, we remain long-

term bullish. In the short term, we believe that the S&P 500 could experience some backing and filling as the S&P 500 registered

an overbought condition with an RSI reading near 70. We are looking for the S&P 500 to pull back to its rising 50-day MA, which currently intersects at 1,643.

Market internals remain strong thus confirming the new price highs in the S&P 500. In particular, cyclical sectorssuch as consumer discretionary and financials continue to outperform, while the small-cap Russell 2000 Index alsohas made new all-time highs, and is outperforming their large-cap peers (lower panel).

We continue to believe that the U.S. equity markets will come under pressure when tapering by the Fed actuallyoccurs or is clearly signalled to the market, but since this is difficult to predict, we remain focused on the technicalswhich are undeniably bullish in our view.

Overall, we see the potential for some short-term profit taking, but remain bullish as the S&P 500 remains in a long-term uptrend, with confirmation from strong market internals.


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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 INDUSTRIALS IDX 390.67 377.43 Uptrend 349.97 Uptrend 67.68 Neutral 1 8 6 6 3 7

S&P 500 ENERGY INDEX 610.01 594.51 Uptrend 566.72 Uptrend 67.89 Neutral 2 10 4 9 1 10S&P 500 UTILITIES INDEX 197.26 193.78 Uptrend 189.35 Uptrend 66.74 Neutral 3 1 11 1 10 3

S&P 500 FINANCIALS INDEX 278.22 267.00 Uptrend 239.72 Uptrend 68.95 Neutral 4 7 3 4 2 11

S&P 500 HEALTH CARE IDX 584.86 563.22 Uptrend 513.00 Uptrend 68.69 Neutral 5 3 8 7 7 2

S&P 500 MATERIALS INDEX 253.36 251.35 Uptrend 242.57 Uptrend 63.95 Neutral 6 5 9 11 9 5

S&P 500 INDEX 1685.47 1642.14 Uptrend 1527.33 Uptrend 67.29 Neutral 7 6 5 5 5 8

S&P 500 CONS STAPLES IDX 426.18 420.43 Uptrend 394.10 Uptrend 63.02 Neutral 8 2 10 8 8 4

S&P 500 CONS DISCRET IDX 469.60 452.77 Uptrend 408.97 Uptrend 66.49 Neutral 9 4 1 2 4 6

S&P 500 TELECOM SERV IDX 158.30 159.73 Downtrend 154.69 Uptrend 51.94 Neutral 10 11 7 3 11 1

S&P 500 INFO TECH INDEX 507.64 503.36 Uptrend 480.11 Uptrend 48.97 Neutral 11 9 2 10 6 9

Ranking of Weekly Momentum


Weekly Momentum:

The industrials and energy sectors outperformed the broader market last week, followed by the interest-sensitive

utilities. Conversely, the information technology and telecommunications sectors underperformed the market.

Utilities have been volatile in recent weeks, alternating between the worst and best performing sectors within our

momentum rankings.

Financials continue to trade well, coming in near the top of our sector rankings for over a month.

The telecommunications sector continues to trade near the bottom of our sector rankings model.

Market Condition:

All sectors have a neutral market condition, with RSIs in the 30 to 70 range.

Other: The telecommunications sector is the only sector trading below its 50-day MA. All sectors remain above their respective 200-day MAs, a clear sign of strength in the U.S. markets.


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Short-Term Market Indicator: CBOE Equity Put/Call Ratio

One of our preferred market indicators is the

CBOE Equity Only Put/Call Ratio. This indicator

captures the number of puts being purchasedrelative to calls.

When few puts are being purchased (less than

0.55 per 1 call contract), this points to overly

bullish investor sentiment, which from a

contrarian perspective, often precedes a short-

term pullback in the markets. Conversely, heavy

put buying (above 0.8 puts to 1 call) captures an

overly bearish sentiment among investors, which

often precedes a short-term bottom in the stock

market.

On a weekly basis, this indicator recently fell to

0.54, which captures a lack of put buying, andfrom a contrarian perspective points to a

potential pull back for U.S. equities.

Long-Term Market Indicator: NYSE Advance/Decline Line

While the markets could come under some

short-term pressure, our longer-term marke

indicators remain bullish and supportive of the

equity markets.

Our preferred long-term market indicatorthe

NYSE Advance/Decline (A/D) Lineis a

cumulative indicator of market breadth

capturing the number of stocks advancing o

declining. This indicator continues to move

higher, showing strong market breadth. However, we do note that the A/D line has not

yet made a new high concurrent with the new

price high on the S&P 500. We are watching thisclosely and would like to see this indicator make

a new high, thus validating the price high for the

S&P 500. Failure to make a new high could

mark an early warning signal for the U.S. equity

markets.


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Page 8

Intermarket Picture

U.S. Dollar Index The U.S. Dollar Index pulled back over the last two weeks, in part due to more dovish comments by

the Fed. The U.S. Dollar Index is now trading at its first support level of 81.80, which if broken, could see the U.S. dollar

decline down to the next support at 80.50, which marks the June lows. Given the recent more dovish comments from the

Fed, we see the potential for additional short-term weakness, possibly down to the 80.50 level. However, given our view

that Fed tapering is a matter of when, not if, we remain bullish on the U.S. dollar and see it potentially making new highs

in the coming months. Our call for the Canadian dollar to rally up to US$0.97 has been realized. We now see the potentia

for the Canadian dollar to peak soon and head lower.

U.S. 10-Year Treasury Yield Following the important technical breakout of the U.S. 10-year Treasury yield, rising

above the 2.40% level, the 10-year yield has been consolidating in a range between 2.45% and 2.70%, helping to work off

the overbought technical condition. We believe that the 10-year yield will remain in a holding pattern until the Fed provides

more clarity on its plans to taper its asset purchases. While economic data could impact yields on the margin in the

coming months, the Fed is really in the drivers seat for yields, in our opinion. Ultimately, we see yields moving up to the

3% range as they begin to taper but given the uncertainty of when that will happen, it is hard to forecast when yields wilbreakout to the upside. In the near-term, we expect yields to remain range-bound between 2.10% and 2.70%.


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Page 9

Gold Gold has bounced back sharply, rising nearly 12% since the July lows. The rally in gold can be attributed to moredovish comments by the Fed over its asset purchases, which has led to weakness in the U.S. dollar, and in turn provided

a boost to the price of gold. Sticking with our technical discipline, we see the recent bounce in the gold price as short term

with the technicals remaining bearish in our view. We see US$1,336/oz. as a key technical level, and only a break and

two day hold above this level would alter our current negative view. This level acted as support in mid-May, so we need to

see the gold price break above and hold this level, which is now resistance. More importantly, the 50-day MA comes in at

US$1,331/oz. and we see this as a key level for the gold price, as the 50-day MA has contained and provided resistance

to the gold price for nearly a year now. If gold can break above these levels, then the downtrend would be over, with gold

back in its trading range of roughly between US$1,335/oz and US$1,550/oz.

WTI Oil WTI oil price has rallied up to an important resistance level around $108/barrel and now looks to be rolling over

Given the recent overbought (RSI) condition for the WTI oil price, momentum that appears to be rolling over (lower panel

and it trading near key resistance, we look for a pullback in the WTI oil price to $98/barrel, which represents technical

support and the 50-day MA.


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Technical Almanac Trading Ideas

Canadian Western Bank (CWB-T) Published July 24, 2013

Canadian financials are up strongly since mid-June, and as a result, the sector has become technically overbought inthe short term. One stock in particular that is overbought and could experience some profit taking is CanadianWestern Bank.

Having advanced 11% since mid-June, CWBs Relative Strength Index (RSI) reading is 74.29, which is well abovethe typical overbought level of 70. We note that over the last 15 months, CWB experienced overbought conditions inSeptember 2012 and February 2013, both of which preceded a pullback in the stock of 8.4% and 14.3%,respectively.

We also note a bearish head and shoulders top forming, with the stock currently forming the right shoulder. Given the overbought technical condition, we believe the shares could pullback in the short term, potentially to

support around $27. Investors long CWBs shares may want to consider trimming or selling their positions ahead ofthis expected pullback.


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Page 11

PNC Financial Services Group (PNC-N) Published July 26, 2013

From our technical breakout/breakdown* model we are highlighting PNC Financial Services Group as an attractivebuy candidate.

Despite PNCs impressive 32% advance year-to-date, we believe the stocks technical profile remains bullish and seethe potential for further upside. PNC has been trading in a well-defined upward channel since the November 2012

lows, supported by its rising 20 and 50-day moving averages (MA). The 50-day MA in particular has provided supporton each short-term pullback, which is a sign of technical strength. PNCs relative strength versus the broader markeremains strong. Finally, investors continue to accumulate shares as seen by its rising On Balance Volume indicator(cumulative measure of trading volume).

A major tenet of technical analysis is that prices move in trends, and this is clearly demonstrated in PNCs pricechart. We see little technical evidence that this trend could be ending, and therefore recommend investorsaccumulate shares. However, having a plan is crucial when investing, and we recommend investors use a stop lossof $69, which is just below its 50-day MA and technical support from the June lows.

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.


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Page 12

Relative Strength Analysis

S&P 500

0.30

0.31

0.32

Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13

S&P 500 INFO TECH INDEX Rel. S&P 500

0.222

0.256

0.290

Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13

S&P 500 CONS DISCRET IDX Rel. S&P 500

0.262

0.275

0.288


S&P 500 CONS DISCRET IDX Rel. S&P 500

0.30

0.33

0.37


S&P 500 INFO TECH INDEX Rel. S&P 500

0.22

0.23

0.24


S&P 500 INDUSTRIALS IDX Rel. S&P 500

0.22

0.24

0.25


S&P 500 INDUSTRIALS IDX Rel. S&P 500

0.15

0.17

0.20


S&P 500 MATERIALS INDEX Rel. S&P 500

0.15

0.16

0.17


S&P 500 MATERIALS INDEX Rel. S&P 500

0.35

0.37

0.39


S&P 500 ENERGY INDEX Rel. S&P 500

0.35

0.41

0.46


S&P 500 ENERGY INDEX Rel. S&P 500

Cyclicals26JAN13 - 26JUL1326JUL10 - 26JUL13


Information

technology broke it

intermediate

downtrend.

Short-term range-

bound.

Industrials long-term

downtrend has

recently been broke

Industrials short-ter

trends are improvin

Consumer

discretionary secto

remains in a long an

short-term relative

uptrend.

Materials remain in

long and short-term

relative downtrend.

Sector continues to

make new relative

lows.

Energy sectorremains in a long-

term relative

downtrend.

Short-term positive

break. Watching for

follow through.


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Page 13

0.23

0.26

0.28


S&P 500 CONS STAPLES IDX Rel. S&P 500

0.14

0.16

0.19


S&P 500 FINANCIALS INDEX Rel. S&P 500

0.28

0.32

0.37


S&P 500 HEALTH CARE IDX Rel. S&P 500

0.09

0.10

0.12


S&P 500 TELECOM SERV IDX Rel. S&P 500

0.11

0.14

0.16


S&P 500 UTILITIES INDEX Rel. S&P 500

0.25

0.27

0.28


S&P 500 CONS STAPLES IDX Rel. S&P 500

0.16

0.16

0.17


S&P 500 FINANCIALS INDEX Rel. S&P 500

0.33

0.35

0.36


S&P 500 HEALTH CARE IDX Rel. S&P 500

0.09

0.10

0.11


S&P 500 TELECOM SERV IDX Rel. S&P 500

0.11

0.13

0.14


S&P 500 UTILITIES INDEX Rel. S&P 500

26JUL10 - 26JUL13 26JAN13 - 26JUL13

Defensives


Consumer staples

range-bound on a

long-term basis.

Short-term trends

negative.

Financials are in a

long and short-ter

uptrend. Continue

accumulate.

Health care remain

in a long-term

uptrend, making n

highs in 2013.

Telecom sector is

trading in a long-te

sideways range.

Making new short

term relative lows

Utilities making ne

long-term relative

lows.

On short-term bas

sector has been

basing since May.


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Page 14

S&P/TSX Composite

0.01

0.01

0.01


S&P/TSX INFO TECH INDEX Rel. S&P/TSX Comp

0.071

0.091

0.111


S&P/TSX CONS DISCRET IDX Rel. S&P/TSX Comp

0.087

0.098

0.109


S&P/TSX CONS DISCRET IDX Rel. S&P/TSX Comp

0.01

0.01

0.02


S&P/TSX INFO TECH INDEX Rel. S&P/TSX Comp

0.12

0.13

0.14


S&P/TSX INDUSTRIALS IDX Rel. S&P/TSX Comp

0.10

0.12

0.14


S&P/TSX INDUSTRIALS IDX Rel. S&P/TSX Comp

0.16

0.25

0.34


S&P/TSX MATERIALS INDEX Rel. S&P/TSX Comp

0.16

0.20

0.23


S&P/TSX MATERIALS INDEX Rel. S&P/TSX Comp

0.21

0.22

0.23


S&P/TSX ENERGY INDEX Rel. S&P/TSX Comp

0.21

0.23

0.25


S&P/TSX ENERGY INDEX Rel. S&P/TSX Comp

Cyclicals26JAN13 - 26JUL1326JAN13 - 26JUL13


Consumer

discretionary rem

in a long and sho

term relative uptre

Information

technology longe

term trend is

improving.

Recent breakdow

a short-term basis

Industrials long-te

trends are

constructive.

Stalling on short-

basis.

Materials are wea

a long and short-t

basis. Underweig

sector within

portfolios.

Energy broke its

long-term downtr

in June.

Relative trends ar

improving for the

sector.


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Page 15

0.12

0.17

0.21


S&P/TSX CONS STAPLES IDX Rel. S&P/TSX Comp

0.12

0.14

0.15


S&P/TSX FINANCIALS INDEX Rel. S&P/TSX Comp

0.03

0.07

0.11


S&P/TSX HEALTH CARE IDX Rel. S&P/TSX Comp

0.06

0.08

0.10


S&P/TSX TELECOM SERV IDX Rel. S&P/TSX Comp

0.13

0.15

0.18


S&P/TSX UTILITIES INDEX Rel. S&P/TSX Comp

0.16

0.19

0.21


S&P/TSX CONS STAPLES IDX Rel. S&P/TSX Comp

0.14

0.15

0.15


S&P/TSX FINANCIALS INDEX Rel. S&P/TSX Comp

0.08

0.09

0.11


S&P/TSX HEALTH CARE IDX Rel. S&P/TSX Comp

0.08

0.09

0.10


S&P/TSX TELECOM SERV IDX Rel. S&P/TSX Comp

0.14

0.15

0.16


S&P/TSX UTILITIES INDEX Rel. S&P/TSX Comp

26JAN13 - 26JUL13 26JAN13 - 26JUL13

Defensives


Consumer staples

long and short-terrelative trends are

positive.

Utilities continue

make new relative

lows.

Health care secto

remains in a stron

long-term uptrend

Telecom sector

recently broke its

long-term relative

uptrend.

New short-term

relative lows.

Financials remain

long-term relative

uptrend.

Lifecos trading b

than banks in the

short-term.


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Page 17

Overbought/Oversold Stocks

S&P 500

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

TOTAL SYSTEM SERVICES INC 81.56 BROADCOM CORP-CL A 17.63

WASHINGTON POST-CLASS B 80.38 INTUITIVE SURGICAL INC 21.36

ROCKWELL COLLINS INC 80.20 MOSAIC CO/THE 32.79

JOHNSON CONTROLS INC 78.85 MATTEL INC 33.44

TE CONNECTIVITY LTD 78.44 DARDEN RESTAURANTS INC 33.77

UNITED TECHNOLOGIES CORP 77.59 MCDONALD'S CORP 34.86

HUMANA INC 77.11 MICROSOFT CORP 34.98

LOCKHEED MARTIN CORP 76.62 MOTOROLA SOLUTIONS INC 35.23

GENWORTH FINANCIAL INC-CL A 76.37 JOY GLOBAL INC 35.62

GENERAL DYNAMICS CORP 76.08 MEAD JOHNSON NUTRITION CO 35.93

NORTHROP GRUMMAN CORP 76.08 J.C. PENNEY CO INC 36.56

ST JUDE MEDICAL INC 76.06 ACCENTURE PLC-CL A 36.94

XILINX INC 75.68 ADVANCED MICRO DEVICES 38.00KROGER CO 75.58 DELL INC 38.10

PERRIGO CO 75.47 STARWOOD HOTELS & RESORTS 38.57


S&P/TSX Composite

Most Overbought Most Oversold

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

SHOPPERS DRUG MART CORP 86.36 BLACKBERRY LTD 25.39

GENWORTH MI CANADA INC 82.43 ARC RESOURCES LTD 31.16

CML HEALTHCARE INC 80.78 PEYTO EXPLORATION & DEV CORP 31.44

MARTINREA INTERNATIONAL INC 78.64 TURQUOISE HILL RESOURCES LTD 31.49

BANK OF MONTREAL 78.38 TOURMALINE OIL CORP 32.60

TRINIDAD DRILLING LTD 76.86 WESTJET AIRLINES LTD 33.76

MANULIFE FINANCIAL CORP 75.86 RITCHIE BROS AUCTIONEERS 34.78

TORONTO-DOMINION BANK 74.79 CANEXUS CORP 34.91

SUN LIFE FINANCIAL INC 73.35 POTASH CORP OF SASKATCHEWAN 35.39

HOME CAPITAL GROUP INC 73.17 BIRCHCLIFF ENERGY LTD 35.52

IGM FINANCIAL INC 73.11 H&R REAL ESTATE INV-REIT UTS 35.92

SHAWCOR LTD 71.09 ALTAGAS LTD 36.04

LAURENTIAN BANK OF CANADA 71.08 FIRST CAPITAL REALTY INC 36.24

NOVAGOLD RESOURCES INC 70.89 TELUS CORP 36.46

SHAW COMMUNICATIONS INC-B 70.48 TRILOGY ENERGY CORP 37.11



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Page 18

Market Statistics

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

U.S. S&P 500 1685.94 0.05 6.44 6.63 18.52 26.34 15.30 6.09

Dow Jones Industrial Average 15542.24 0.05 5.39 5.81 18.71 22.72 14.27 6.47

Dow Jones Transportation 6442.17 -2.13 5.52 5.37 21.33 30.50 13.79 5.36Dow Jones Utilities 499.70 -1.08 5.29 -5.76 10.67 4.23 9.04 0.91

Nasdaq Composite 3579.60 -0.17 7.69 9.58 19.40 26.31 16.68 9.31

Russell 2000 1043.83 0.37 9.67 12.11 24.12 37.03 17.45 8.22

Russell 1000 Value 865.08 0.30 7.05 7.53 21.01 31.77 15.37 5.41

Russell 1000 Growth 763.82 -0.06 6.43 5.88 16.61 23.12 15.85 7.30

Canada S&P/TSX Composite 12672.30 0.32 5.53 2.75 1.89 10.24 2.65 -1.08

S&P/TSX 60 728.39 0.27 5.61 3.50 2.08 11.09 2.14 -1.86

S&P/TSX Smallcap 563.17 1.35 6.35 1.15 -3.79 0.12 -1.43 -1.91

S&P/TSX Venture 924.66 1.05 4.74 -4.20 -24.33 -21.17 -12.82 -15.83

International DAX 8379.11 -0.46 6.24 5.95 9.02 29.54 10.41 5.21

FTSE 100 6620.43 -0.70 7.97 2.26 11.70 19.82 7.44 4.24

Nikkei 225 14731.28 -1.66 13.47 4.89 40.09 72.48 15.29 1.78

Hang Seng 21968.93 2.60 7.68 -2.87 -3.34 15.92 1.67 -0.75

Shanghai 2033.33 -0.11 3.57 -7.20 -10.93 -4.93 -7.92 -6.74

MSCI World 1519.77 0.48 7.49 4.05 13.44 26.35 10.76 2.22

MSCI EAFE 1748.18 1.30 9.09 1.47 9.35 28.63 6.46 -1.60

MSCI Emerging Markets 269.75 -0.06 5.57 -3.28 -3.74 10.10 n/a n/a

S&P 500 Sectors Consumer Discretionary 469.77 -0.52 7.78 8.84 25.01 39.28 23.69 15.97

Comsumer Staples 426.58 -0.07 5.44 1.61 18.76 19.87 15.27 8.86

Energy 611.06 0.86 6.92 7.68 15.25 21.24 15.15 1.98

Financials 278.15 -0.31 7.88 10.84 25.83 45.02 12.42 -0.12

Health care 585.49 1.83 7.76 6.78 27.07 35.33 21.26 9.60Industrials 390.86 0.53 7.08 9.33 18.89 29.61 14.42 4.86

Information Technology 506.92 -1.22 4.20 7.02 9.34 13.06 12.17 7.55

Materials 253.77 1.07 5.55 3.17 7.80 18.33 9.74 1.09

Telecommunications 158.77 -0.03 1.52 -4.64 8.80 9.02 13.62 4.22

Utilities 197.50 -0.53 5.93 -4.27 12.15 5.91 8.77 0.79

S&P/TSX Sectors Consumer Discretionary 1341.99 0.52 8.25 12.83 25.91 36.36 10.29 7.01

Comsumer Staples 2602.15 0.63 9.99 13.96 22.71 35.39 19.91 13.16

Energy 2764.47 -0.54 5.35 3.49 4.05 7.26 -0.03 -4.51

Financials 1886.00 0.16 6.16 5.26 7.35 19.81 6.70 2.96

Health care 1279.91 0.13 4.50 13.21 41.72 62.96 48.26 31.11

Industrials 1706.33 -1.59 3.06 4.56 14.89 23.98 12.81 6.31Information Technology 123.72 1.14 -8.79 -2.45 17.16 36.19 -18.10 -20.78

Materials 2185.25 4.37 9.97 -5.63 -26.68 -19.39 -10.31 -8.30

Telecommunications 1042.24 -1.91 -4.85 -10.93 -2.76 2.72 8.67 3.24

Utilities 1850.97 -1.24 4.74 -5.09 -4.81 -4.28 2.47 -0.47Source: Bloomberg Finance L.P. 3 and 5 year returns are annualized. As at July 25, 2013


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Page 19

Appendix A Important Disclosures

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The Technical Take - July 29, 2013