November 4, 2013

Report prepared by: Ryan Lewenza, CFA, CMT North American Equity Strategist

Volume 8 Highlights

The S&P/TSX Composite Index (S&P/TSX) broke above a key technical resistance level of 12,900 in October. We view this breakout as an important event for the S&P/TSX, as we believe it is now in a new higher trading range. With the recent strength, the S&P/TSX is now technically overbought and we expect some nearterm backing and filling for the S&P/TSX; however, we are growing more bullish on the S&P/TSX. We have been bullish on the Canadian financials sector; however, we believe the sector is due to take a breather in the coming weeks. Given the recent strong gains and overbought condition, we could see some near-term profit taking. We continue to believe that the U.S. Federal Reserve`s (Fed) asset purchases are providing a significant boost to the equity markets, and with our expectations of the Fed taper being pushed out until Q1/14, we see the potential for continued strength in U.S. equities. In the near-term, however, we see the potential for a pause in the rally and more likely, some short-term profit taking. Bearish investor sentiment has dropped to levels not seen since early 2012. Currently 17.6% of investors surveyed are bearish, which is well below the long-term average of 31%. Overall, investor sentiment is heavily skewed to the bullish camp, which could be foreshadowing a short-term pull back in the equity markets. In this weeks report, we highlight Corning Inc. (GLW-N) and Teck Resources Ltd. (TCK-T) as attractive buy candidates and recommend investors trim/sell International Business Machines Corp. (IBM-N).

Inside
Technical Commentary (Pages 2 10) Technical Almanac Trading Ideas (Pages 11 13) Sentiment Indicators (Page 14) Overbought/Oversold Stocks (Page 15) Market Statistics (Page 16)

Chart of the Week The Bears Have Gone Into Hibernation This Document is for distribution to Canadian clients only. Please refer to Appendix A in this report for important information.
AAII Investor Sentiment Bearish %
60.0

50.0

40.0

30.0

20.0
Last reading of 17.5% is well below long-term average of 31%.

10.0

0.0 Dec-09

Jun-10

Dec-10

Jun-11

Dec-11

Jun-12

Dec-12

Jun-13

Source: Bloomberg Finance L.P. As of October 30, 2013

The Technical Take

November 4, 2013

Technical Commentary
S&P/TSX Composite Index

Its a positive sign when you have to expand your date range following a technical breakout to help determine next resistance levels. The S&P/TSX Composite Index (S&P/TSX) broke above a key technical resistance level of 12,900 in October, which has contained the S&P/TSX for much of the year. We view this breakout as an important event for the S&P/TSX, as we believe it is now in a new higher trading range. With the recent strength, the S&P/TSX is now technically overbought with its Relative Strength Index (RSI) reading of 77.80. In fact, the S&P/TSX is the most overbought it has been in over three years. Additionally, we note that the S&P/TSX is quickly approaching its next resistance level of 13,500. Given the overbought technical condition and with the S&P/TSX at technical resistance, we expect at a minimum, a pause in its ascent and more likely some short-term profit taking to help work off its overbought condition. Overall, we expect some near-term backing and filling for the S&P/TSX; however, we are growing more bullish on the S&P/TSX, and believe it could now be trading in a new higher trading range. Key support level to watch is 12,900, which is the convergence of the 50-day moving average (MA) and previous resistance. Next key resistance levels are 13,500, then roughly 14,000. Page 2

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November 4, 2013

Canadian Sector Highlights

Name S&P/TSX MATERIALS INDEX S&P/TSX INDUSTRIALS IDX S&P/TSX UTILITIES INDEX S&P/TSX COMPOSITE INDEX S&P/TSX TELECOM SERV IDX S&P/TSX CONS DISCRET IDX S&P/TSX FINANCIALS INDEX S&P/TSX CONS STAPLES IDX S&P/TSX HEALTH CARE IDX S&P/TSX ENERGY INDEX S&P/TSX INFO TECH INDEX Last Price 2224.88 1907.61 1829.93 13441.80 1145.94 1457.36 2027.85 2601.06 1465.75 2869.72 135.48 50 DMA 2179.00 1749.04 1738.48 12868.34 1091.91 1390.85 1920.67 2502.49 1419.52 2779.91 136.49 Trend of 50 DMA Uptrend Uptrend Uptrend Uptrend Uptrend Uptrend Uptrend Uptrend Uptrend Uptrend Downtrend 200 DMA 2362.66 1691.16 1859.67 12621.63 1113.56 1259.69 1845.56 2351.20 1217.80 2730.57 129.03 Trend of 200 DMA Downtrend Uptrend Downtrend Uptrend Uptrend Uptrend Uptrend Uptrend Uptrend Uptrend Uptrend RSI 14 Day 56.52 79.29 70.65 77.96 68.93 75.73 83.65 68.73 59.58 67.20 45.87 Market Ranking of Weekly Momentum Condition Current 2 3 4 5 Neutral 1 1 11 11 11 Overbought 2 9 4 2 4 Overbought 3 4 6 5 8 Overbought 4 5 9 7 6 Neutral 5 7 1 10 7 Overbought 6 10 8 3 3 Overbought 7 3 5 6 2 Neutral 8 8 3 4 1 Neutral 9 2 10 1 10 Neutral 10 6 7 9 5 Neutral 11 11 2 8 9 6 9 3 1 6 2 7 8 11 5 10 4

Source: Bloomberg Finance L.P. As at October 30, 2013.

Weekly Momentum: The materials sector has recently shown strength, with the sector in the top spot of the sector rankings for two consecutive weeks. The industrials sector remains strong, coming in near the top of the sector rankings over the last six weeks. The rate-sensitive utilities and telecommunications sectors have been showing improved performance over the last six weeks. The information technology and energy sectors underperformed last week, coming in at the bottom of the sector rankings. Market Condition: As a result of the recent strength in the S&P/TSX, a number of sectors are registering an overbought technical condition. The industrials, utilities, consumer discretionary, and financials sectors are all overbought with RSIs above 70. As such, we expect some near-term backing and filling in these sectors. Other: Despite the recent strength, the utilities and materials sectors remain below their 200-day MAs, which factor into our call to underweight these sectors within portfolios.

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The Technical Take

November 4, 2013

S&P/TSX Capped Financial Services Index

We have been bullish on the Canadian financials sector and now believe that the sector is due to take a breather in the coming weeks, following its 7% gain since early October and 18% gain since June. The S&P/TSX Capped Financial Services Index remains in a well-defined uptrend, supported by its rising 50- and 200-day MAs. The sector continues to outperform the broader market, making a succession of higher relative highs over 2013 (lower panel). With these strong gains, the financials sector is now technically overbought, with an RSI level of 82.44 (above 70 indicates overbought) and an elevated MACD indicator. Considering these gains and overbought condition, we see the potential for near-term profit taking, with the S&P/TSX Capped Financial Services Index possibly pulling back to 215, which is the convergence of the short-term uptrend and the 50-day MA. Despite the potential for near-term downside pressure, we remain constructive on the sector given its strong relative strength and solid price uptrend. Page 4

The Technical Take

November 4, 2013

S&P 500 Index

This week, we are looking at a longer-term (weekly) chart for the S&P 500 Index (S&P 500). Following the breakout above short-term resistance of 1,729 (Septembers high), the S&P 500 has been slowly and methodically moving higher, making new all-time highs. The S&P 500 is quickly approaching an important resistance level just below 1,800, which is where the long-term upper channel line intersects. We continue to believe that the U.S. Federal Reserve`s (Fed) asset purchases are providing a significant boost to the equity markets, and with our expectations of the Fed taper being pushed out until Q1/14, we see the potential for continued strength in U.S. equities. Our bullish view for the S&P 500 is predicated on: 1) the S&P 500 remaining in a solid upward channel; 2) the S&P 500 trading above its rising 50- and 200-week MAs, 3) the small-cap Russell 2000 Index continuing to outperform the S&P 500 (lower panel); and 4) cyclical sectors continuing to outperform the defensive sectors. In the near-term, however, we see the potential for a pause in this rally, and more likely, some short-term profit taking. This is based on the following observations: 1) the S&P 500 is technically overbought on a daily and weekly basis; 2) the percentage of stocks in the NYSE above their 50-day MAs recently hit 85 (above the 80 overbought level); 3) put/call ratios are low; and 4) investor sentiment is very bullish (see page 7). Overall, our call is for a short-term pullback to work off the overbought condition, but given the continued supportive Fed policies, and the bullish long-term technical trends, we remain buyers on weakness. Page 5

The Technical Take

November 4, 2013

U.S. Sector Highlights

Name S&P 500 INDUSTRIALS IDX S&P 500 UTILITIES INDEX S&P 500 CONS DISCRET IDX S&P 500 MATERIALS INDEX S&P 500 TELECOM SERV IDX S&P 500 CONS STAPLES IDX S&P 500 INDEX S&P 500 INFO TECH INDEX S&P 500 HEALTH CARE IDX S&P 500 ENERGY INDEX S&P 500 FINANCIALS INDEX Last Price 50 DMA 422.55 399.97 199.16 190.97 502.68 477.49 277.52 265.85 160.74 151.63 439.65 416.74 1769.51 1691.86 546.15 522.02 615.04 589.94 632.70 610.18 280.92 271.73 Trend of Trend of RSI Market Ranking of Weekly Momentum 50 DMA 200 DMA 200 DMA 14 Day Condition Current 2 3 4 5 Uptrend 375.74 Uptrend 72.53 Overbought 1 10 3 10 3 Uptrend 193.66 Uptrend 66.35 Neutral 2 11 1 9 2 Uptrend 444.95 Uptrend 68.65 Neutral 3 8 11 3 1 Uptrend 253.45 Uptrend 64.61 Neutral 4 7 10 2 8 Uptrend 156.20 Uptrend 69.80 Neutral 5 1 5 8 6 Uptrend 412.34 Uptrend 75.94 Overbought 6 9 2 11 11 Uptrend 1619.50 Uptrend 70.53 Overbought 7 5 6 7 7 Uptrend 498.63 Uptrend 69.47 Neutral 8 6 8 6 4 Uptrend 555.17 Uptrend 67.54 Neutral 9 3 9 1 9 Uptrend 591.30 Uptrend 65.41 Neutral 10 4 7 4 5 Uptrend 259.22 Uptrend 61.97 Neutral 11 2 4 5 10 6 1 2 4 5 11 6 7 8 9 10 3

Source: Bloomberg Finance L.P. As at October 30, 2013.

Weekly Momentum: The industrials sector performance has oscillated in recent weeks; however, the price trend remains positive, with the sector being one of our preferred sectors. The rate-sensitive utilities, telecommunications and consumer staples sectors outperformed last week. The financials sector, which has been outperforming, slipped to last spot last week. Market Condition: The industrials and consumer staples sectors are currently overbought with RSIs above 70. Other: With the recent strength, all S&P 500 sectors are now trading above their 50- and 200-day MAs.

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November 4, 2013

Investor Sentiment Update

AAII Investor Sentiment Bullish %

70 60 50
Last reading of 49.2% is well above long-term average of 39%.

40
30 20

10
0 Dec-09

We closely track investor sentiment, as we have found it to be a good contrarian indicator, and often predictive when at extreme levels. Recent surveys by the American Association of Individual lnvestors (AAII) exhibit a very bullish investor public. The current percentage of bullish investors is 49.2%, which is near peak levels and well above its long-term average of 39%.

Jun-10

Dec-10

Jun-11

Dec-11

Jun-12

Dec-12

Jun-13

Source: Bloomberg Finance L.P. As of October 30, 2013

AAII Investor Sentiment Bearish %

60.0

Last reading of 17.5% is well below long-term average of 31%.

50.0

40.0

30.0

20.0

10.0

0.0 Dec-09

Similarly, bearish investor sentiment has dropped to levels not seen since early 2012. Currently 17.6% of investors surveyed are bearish, which is well below the long-term average of 31%. Subtracting the bulls from the bears, the current reading of 31.6% is the highest reading since January 2012. Overall, investor sentiment is heavily skewed to the bullish camp, which could be foreshadowing a short-term pull back in the equity markets.

Jun-10

Dec-10

Jun-11

Dec-11

Jun-12

Dec-12

Jun-13

Source: Bloomberg Finance L.P. As of October 30, 2013

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The Technical Take

November 4, 2013

U.S. S&P 500 Healthcare Sector Index

While our current preference is for the cyclical sectors, we remain bullish on the U.S. healthcare sector, as it continues to outperform the broader market. The S&P 500 Healthcare Sector Index remains in a solid upward channel, supported by its rising 50- and 200-day MAs. In the near-term, the sector is trading at the top of its upper channel, which could result in a short-term pullback, with the sector possibly retreating to its 50-day MA at 590. Given the healthcare sectors strong price and relative trends, we remain constructive on the sector and would recommend that investors increase exposure on short-term weakness.

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November 4, 2013

Intermarket Picture

U.S. Dollar Index The U.S. Dollar Index has declined to key support around 79. Now we expect a short-term move higher in the dollar, possibly back up to resistance around 80.50. This level should prove difficult to break as its formed by the convergence of the short-term downtrend and previous resistance. Overall, we see the U.S. Dollar Index trading more range-bound in the coming months, until the Fed begins its taper, likely in Q 1/14.

U.S. 10-Year Treasury Yield Little has changed with the 10-year U.S. Treasury yield since our last report. It remains range-bound between 2.45% and 2.90%, which we expect to continue in the weeks ahead. We note that momentum (MACD) remains weak but could soon bottom. If this plays out, we expect to see the 10-year mover higher in the short term, possibly back up to its 50-day MA, currently at 2.71%. Overall, we see the 10-year yield as range-bound in the nearterm, before it moves higher in 2014. Page 9

The Technical Take

November 4, 2013

Gold Gold has recently rallied off short-term support around US$1,270/oz. and is now finding resistance at its shortterm downtrend. If gold is able to break above its downtrend, we could see it move up to next resistance around US$1,430/oz. but would expect this to cap any additional upside. Overall, we maintain our call for gold to remain rangebound between US$1,180/oz. and US$1,480/oz. on an intermediate basis.

West Texas Intermediate (WTI) Oil Our call for WTI prices to pull back in recent months has been realized with WTI pulling back to support around US$98/bl. In fact, WTI has broken down through this support and its 200-day MA. Despite this, we see the potential for a trading bounce given its near oversold condition, with its RSI reading of 33.44 and its MACD in oversold territory. Page 10

The Technical Take

November 4, 2013

Technical Almanac Trading Ideas

Corning Inc. (GLW-N) Published October 25, 2013

We are highlighting the technical breakout of Corning Inc. from our breakout/breakdown model*. GLW has struggled over the last two years, with the stock price being contained by stiff technical resistance around the $14 level. However, we believe the stocks technical profile is improving. There was a change of polarity in GLW, with resistance of $14 becoming technical support in recent months. This was the first bullish development for the stock, and an important sign that things were improving. Then GLW broke through its lower short-term trendline on the breakout, which was accompanied by a surge in volume of 6x its normal average trading volume. Finally, we note GLW is trading above its rising 50- and 200-day moving averages. Given the breakout we see the potential for additional upside, but with the stock overbought in the short term, we would prefer to buy on weakness. Our technical target on this trade is $20 to $21.

*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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The Technical Take

November 4, 2013

Teck Resources Ltd. (TCKB-T) Published October 28, 2013

The materials sector has underperformed the S&P/TSX Composite Index year-to-date. However, recently there has been a noticeable improvement in key stocks within the sector, such as Teck Resources Ltd. TCK.B had been trading in a range between roughly $21 and $30 since March, but recently broke above this resistance level. The breakout completed the inverse head and shoulders pattern, which has been forming over the last eight months. Based on this technical event, the measuring implication is for TCK.B to rally up to $39. Following the breakout the stock is now trading above key resistance of $29/$30, which may signal a new higher trading range for TCK.B. As is common with breakouts, TCK.B is close to being overbought with a Relative Strength Index (RSI) reading of 65. As such, we could see the share price pull back in the near term. If the stock pulls back and holds the $29/$30 resistance (now support) level, then we would become more bullish on the stock. We recommend investors buy TCK.B on weakness, but also recommend a stop loss of $26, which is just below the share prices October lows.

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November 4, 2013

International Business Machines Corp. (IBM-N) Published October 30, 2013

International Business Machines Corp. has significantly underperformed year-to-date, and given its weak technical profile we would reduce/sell positions into any short-term strength. Since peaking in March 2013, IBM has been trading in a downward channel and recently broke below a key technical support range of $179 to $182.50. The technical breakdown on October 17 was on heavy volume, with volume 5x its average daily amount. IBM is trading below its declining 50- and 200-day moving averages (MA), and its relative strength remains weak (lower panel). Given IBMs recent weakness the stock is now experiencing an oversold bounce, which could take the stock back up to resistance in the $185 to $190 range (red box). We would reduce/sell IBM on any near-term strength, as we see the potential for further weakness following its short-term bounce.

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November 4, 2013

Sentiment Indicators

Volatility (VIX) Index

30 1.5 1.4 25

CBOE Total Put/Call Ratio 5-Day MA

1.3
1.2

20

1.1 1.0 0.9

15

0.8 0.7

10

0.6 0.5

5 Jan-12 Apr-12

Jul-12

Oct-12

Jan-13 Apr-13

Jul-13

Oct-13

0.4 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 CBOE Put/Call Level 0.87 1 M Ago 1.11 3 M Ago 1.00

VIX

Level 13.46

1 M Ago 16.60

3 M Ago 13.45

AAII Investor Sentiment: Bulls Minus Bears

60 50 40 30 20 10 0 -10 -20 -30 -40 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13

NYSE % of Stocks Above 200-day MA

100 90 80 70

60
50

40
30

20
10

0 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13

Bulls Bears Bulls - Bears

Level 44.97 21.48 23.49

1 M Ago 36.05 30.61 5.44

3 M Ago 45.12 22.56 22.56

% of Stocks Above 200-day MA

Level 73

1 M Ago 68

3 M Ago 75

Source: Bloomberg Finance L.P. As at October 31, 2013

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The Technical Take

November 4, 2013

Overbought/Oversold Stocks
S&P 500
Most Overbought Name SOUTHWEST AIRLINES CO XYLEM INC CHIPOTLE MEXICAN GRILL INC FEDEX CORP LORILLARD INC UNITED PARCEL SERVICE-CL B MCKESSON CORP KIMBERLY-CLARK CORP CR BARD INC INTUIT INC ARCHER-DANIELS-MIDLAND CO BAKER HUGHES INC VALERO ENERGY CORP AON PLC KOHLS CORP
Source: Bloomberg Finance L.P. As at October 30, 2013

RSI (14D) 85.99 85.60 82.75 82.63 81.85 81.54 81.01 80.77 80.54 78.68 78.23 77.79 76.82 76.57 75.57

Most Oversold Name EDWARDS LIFESCIENCES CORP WESTERN UNION CO CITRIX SYSTEMS INC MERCK & CO. INC. MEADWESTVACO CORP FMC TECHNOLOGIES INC NETAPP INC AKAMAI TECHNOLOGIES INC JABIL CIRCUIT INC CABLEVISION SYSTEMS-NY GRP-A CUMMINS INC SYMANTEC CORP ALTERA CORP CAMERON INTERNATIONAL CORP JUNIPER NETWORKS INC

RSI (14D) 25.37 28.08 28.40 30.81 31.23 31.65 31.94 32.55 32.91 34.89 35.14 35.29 35.34 35.98 36.11

S&P/TSX Composite
Most Overbought Name PETROMINERALES LTD GENIVAR INC THOMSON REUTERS CORP CAN IMPERIAL BK OF COMMERCE BANK OF NOVA SCOTIA TORONTO-DOMINION BANK WESTSHORE TERMINALS INVESTME HOME CAPITAL GROUP INC GENWORTH MI CANADA INC GREAT-WEST LIFECO INC POWER FINANCIAL CORP CANADIAN PACIFIC RAILWAY LTD SUN LIFE FINANCIAL INC NORTH WEST CO INC/THE NATIONAL BANK OF CANADA
Source: Bloomberg Finance L.P. As at October 30, 2013

RSI (14D) 85.52 84.06 83.82 82.75 80.34 79.84 79.05 78.75 78.53 77.49 77.12 76.33 76.19 76.17 75.95

Most Oversold Name PRETIUM RESOURCES INC REITMANS (CANADA) LTD-A MANITOBA TELECOM SVCS INC BONAVISTA ENERGY CORP LIGHTSTREAM RESOURCES LTD WI-LAN INC CORUS ENTERTAINMENT INC-B SH RIO ALTO MINING LTD WESTPORT INNOVATIONS INC MEG ENERGY CORP CENTERRA GOLD INC DUNDEE PRECIOUS METALS INC NIKO RESOURCES LTD ATHABASCA OIL CORP SHERRITT INTERNATIONAL CORP

RSI (14D) 27.14 28.81 33.09 34.22 36.45 37.16 37.22 38.13 38.91 38.98 39.68 40.44 40.70 42.22 42.80

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The Technical Take

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Market Statistics
Region U.S. Index S&P 500 Dow Jones Industrial Average Dow Jones Transportation Dow Jones Utilities Nasdaq Composite Russell 2000 Russell 1000 Value Russell 1000 Growth S&P/TSX Composite S&P/TSX 60 S&P/TSX Smallcap S&P/TSX Venture DAX FTSE 100 Nikkei 225 Hang Seng Shanghai MSCI World MSCI EAFE MSCI Emerging Markets Consumer Discretionary Comsumer Staples Energy Financials Health care Industrials Information Technology Materials Telecommunications Utilities Consumer Discretionary Comsumer Staples Energy Financials Health care Industrials Information Technology Materials Telecommunications Utilities Last 1771.95 15680.35 7051.80 505.85 3952.34 1121.07 892.24 826.07 13440.61 774.04 599.51 964.17 9010.27 6777.70 14502.35 23304.02 2160.46 1614.33 1888.38 294.64 503.61 441.29 634.86 281.25 616.64 422.71 545.93 278.07 161.21 199.14 1460.54 2604.26 2878.13 2027.75 1485.56 1909.93 135.42 2195.11 1146.76 1835.96 1 Week 0.97 1.33 0.68 0.11 0.60 -0.49 0.68 0.99 1.60 1.06 -0.33 -0.88 0.41 0.54 -1.09 1.62 -1.05 0.25 -0.15 1.39 1.60 1.37 1.17 0.19 0.53 1.07 1.46 -0.09 1.37 0.14 0.97 0.23 2.04 1.68 -2.55 1.10 -0.35 3.46 0.23 0.26 1 Month 3 Month 4.86 4.60 3.23 0.77 6.47 8.46 4.24 -0.25 4.22 8.39 2.95 5.76 4.69 2.80 4.58 7.01 5.23 5.61 4.06 2.45 4.93 4.45 -0.88 1.52 -1.52 4.42 4.15 6.06 4.36 6.71 4.30 4.33 4.66 5.07 4.88 4.31 7.44 4.21 4.98 5.40 3.33 5.98 7.23 10.03 0.76 4.53 4.88 5.45 7.76 8.31 7.40 5.10 8.96 1.94 4.83 6.04 7.41 6.89 9.79 11.20 6.59 2.84 3.86 1.48 3.91 7.76 6.94 8.44 2.34 -0.81 9.01 1.33 5.31 9.07 13.14 12.08 3.60 7.41 10.36 -0.55 YTD 23.64 19.19 32.07 10.95 30.17 30.16 23.92 24.81 8.22 8.45 2.44 -21.05 18.46 14.44 37.83 2.43 -5.62 20.42 18.06 6.15 33.29 21.34 18.37 26.55 32.49 28.07 17.42 16.33 9.83 11.35 36.42 23.50 8.26 15.64 61.85 28.17 28.23 -25.52 7.27 -5.32 1 Year 24.87 19.26 37.83 4.86 32.02 35.03 25.74 26.35 8.31 8.78 0.24 -26.65 24.20 16.72 60.48 7.23 3.52 23.84 24.40 12.07 37.62 19.95 16.84 30.91 32.39 32.72 18.18 21.44 7.69 5.54 41.31 31.27 6.45 20.65 66.44 33.67 35.03 -31.08 6.70 -5.57 3 Year 14.22 12.00 13.81 7.48 16.17 16.27 14.08 15.00 2.01 2.06 -4.03 -20.93 10.96 5.95 15.90 0.16 -10.42 9.66 5.42 n/a 21.79 13.88 12.54 12.66 19.33 14.86 11.62 8.66 9.73 7.14 11.13 15.97 0.55 7.64 44.58 14.60 -15.72 -15.95 10.41 -0.10 5 Year 12.73 10.87 12.52 5.85 17.96 15.51 11.24 15.60 6.63 5.53 9.13 1.05 12.57 9.05 10.81 10.69 4.38 10.98 8.86 n/a 22.92 11.53 9.48 6.01 14.43 13.55 16.17 12.10 9.04 5.97 11.43 13.60 3.45 8.23 38.57 13.90 -8.70 4.34 6.44 2.99

Canada

International

S&P 500 Sectors

S&P/TSX Sectors

Source: Bloomberg Finance L.P. 3 and 5 year returns are annualized. As at October 30, 2013

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November 4, 2013

Appendix A Important Disclosures

General Research Disclaimer 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. Technical Research Disclaimer The opinions expressed herein reflect a technical perspective and may differ from fundamental research on these issuers. Fundamental 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, directly 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) the overall 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 institutional 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 or a wholly-owned subsidiary, in Canada and/or in other countries.

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