Monday, January 5, 2015

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 40 to 41.

Quant Daily

Market Elements Page

December 2, 2014 NEW Market Elements 2

Trends & Inflection Points

January 5, 2015 NEW Simple New Year’s Resolution 9

January 2, 2015 Inside TIPs – Capitulation 10

December 29, 2014 Inside TIPs – Long/Short Filters 11

December 24, 2014 Inside TIPs – Equity Tactical Asset Allocation 12

December 23, 2014 Inside TIPS – ETFs 13

December 22, 2014 Inside TIPs – Sector & Industry Report 14

December 19, 2014 99 Technology Momentum Buys 15

December 18, 2014 Oil – Santa Takes on Mack the Knife 18

December 17, 2014 This Break is Different - OEX 19

December 16, 2014 Breaking Below October Lows 20

December 15, 2014 High Yield Contagion 21

December 12, 2014 Insure the Portfolio 23

December 11, 2014 Energy End Game 24

December 10, 2014 Best of Canadian High Yield 26

December 9, 2014 Cutting Against the Grain – IFP, WY 27

December 8, 2014 Energy Update 28

December 5, 2014 CDN Banks – Double Top 29

December 4, 2014 Technology Strength 30

December 3, 2014 Canadian Small Cap Momentum Buys 31

December 2, 2014 High Yield – Trim Time 32

December 1, 2014 Completing the Trio – Industrial Sells 33

November 28, 2014 Copper Breakdown – Short CUM, ANTO 34

Focal Points

October 27, 2014 Health Care – Universal Strength 36

Market Elements January 2, 2015 Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

European & NAmer. shares opened higher but ended the session littlechanged to lower; MSCI World fell below its 200d MA.

Peripheral EU bonds soared & core EU bonds rose on Draghi interview;EU peripheral (ex Greece) & core 10y yields broke down to new lows; NAmajor 10y yields fell; NA corp CDS indices widened while EU tightened.

The Euro fell to 1.20 (nearing its 2010 low of 1.19) on Draghi interview;the USD soared; GBP tumbled 1.6% (worst day in 4.5y) while the loonietumbled 1.3% (worst day in 3y) both hitting multi-year lows.

Commodities were mixed to lower; WTI & Brent fell, minting newclosing lows; gold swung in a wide range and ended little changed.

Levels* Currencies (USD per) Commodities Government 10- Yr Benchmark Equity Indices & Sentiment

Symbol H/L Level %Chg Symbol H/L Level %Chg Symbol H/L Level Chg Symbol H/L Level %ChgDXY H 91.11 0.9% BB Cmdty L -0.4% -0.4%

L -0.8% L -1.4% -0.4%L -0.7% -0.0%L -1.6%

-0.6% -0.2%L -1.3

103.86 U.S. 2.12 -0.06 MSCI World 1,703 EUR 1.2004 WTI Oil 52.55 Canada L 1.75 -0.04 MSCI EM 952 CHF 0.9988 NMX Gas 2.97 2.7% U.K. L 1.72 -0.04 S&P 500 2,058 GBP 1.5335 Gold 1,187.9 0.5% Germany L 0.50 -0.04 S&P/TSX 14,754 0.8%JPYx10 0.0830 Silver 15.77 0.6% France L 0.78 -0.05 STOXX 50 3,139 CAD 0.8502 % Platinum 1,202.8 Italy L 1.74 -0.15 FTSE 100 6,548 AUD 0.8091 Palladium 795.55 Spain L 1.50 -0.11 Hang Seng 23,858 1.1%NZD 0.7698 CMX Cu 281.55 Portugal L 2.42 -0.27 Topix 1,408 0.0%BRL 0.3710 LME Al 3m 0.83 Greece 9.25 -0.49 S&P/ASX 5,436 0.5%MXNx10 0.6736 LME Ni 3m 6.73

-0.4% -0.3%

L -1.1% -0.2% -1.3% L -0.4% -1.8% -1.1%

L -0.7% -2.1% Australia 2.87 CSI 300 H 3,534 0.0%ZAR 0.0853 LME Zn 3m 1.00 1.2% Hong Kong 1.92 CDX IG 5Yr 67 KRWx10 0.9034 Lumber 332.00 0.3% India 7.88 -0.00 ARMS 1 -33.7%CNY 0.1612 0.0% Corn 395.75 Japan 0.33 VI

0.06

-1.5% 0.06 1.1% -1.2% -0.3% 0.00 X 18 -7.3%

Moves Currencies (spot) Commodities Government 10- Yr Benchmarks Equity Indices

2.0% 1.5% 1.0% 0.5% 0.0% 0.5%

BRL

GBP

ZAR

NZD

CAD

KRW

AUD

EUR

CHF

MXN

JPY

CNY

-0.60-0.40-0.20

Greece

Portugal

Italy

Spain

U.S.

France

Germany

Canada

U.K.

India

Japan

Australia

Hong Kong

3.0% 2.0% 1.0% 0.0% 1.0% 2.0% 3.0%

LME Ni 3m

WTI Oil

LME Al 3m

BB Cmdty

Platinum

CMX Cu

Corn

Palladium

Lumber

Gold

Silver

LME Zn 3m

NMX Gas

1.5% 1.0% 0.5% 0.0% 0.5% 1.0% 1.5%

FTSE 100

MSCI EM

S&P/ASX

STOXX 50

MSCI World

S&P 500

Topix

S&P/TSX

Hang Seng

CSI 300

0.000.20

Sectors MSCI World S&P Europe 350 S&P 500 S&P/TSX Composite

1.0% 0.8% 0.6% 0.4% 0.2% 0.0%

Cons Stap

Cons Disc

Materials

Telecom

Industrials

Financials

Info Tech

Utilities

Energy

Hlth Care

1.0% 0.5% 0.0% 0.5% 1.0%

Cons Disc

Cons Stap

Industrials

Info Tech

Financials

Materials

Hlth Care

Energy

Telecom

Utilities

1.5% 1.0% 0.5% 0.0% 0.5%

Cons Stap

Materials

Cons Disc

Utilities

Telecom

Energy

Industrials

Hlth Care

Info Tech

Financials

0.0% 1.0% 2.0% 3.0% 4.0%

Industrials

Cons Stap

Cons Disc

Financials

Info Tech

Telecom

Utilities

Energy

Hlth Care

Materials

Source for all data and graphics in this publication: BMO Capital Markets, Bloomberg, Thomson * H/L = at a new closing 52- wk High/Low; / = within 10% of the 52- week High/Low; Colour codes are inverted for bond and sentiment indications

Market Elements

Daily Charts 3-Month View with 26-Day Bollinger Bands and 150-, 200- and 50-Day Moving Averages

Currencies Commodities Bonds Equities

Page 2 January 2, 2015

Market Elements

Intra Day Charts 2-Day 1-Minute View

Currencies Commodities Bonds Equities

Page 3 January 2, 2015

Market Elements

Daily Sector Charts 3-Month View with 26-Day Bollinger Bands and 150-, 200- and 50-Day Moving Averages

Canada – at a 52-week high: Consumer Staples, Health Care, Information Technology.

S&P 500

S&P/TSX Composite

S&P Europe 350

Page 4 January 2, 2015

Market Elements

Market Movers – Largest Daily Percentage Moves

S&P Global 1200 ex U.S. & Canada S&P 500 S&P/TSX CompositeName Symbol % Chg Name Symbol % Chg Name Symbol % ChgSECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Energy Seadrill Ltd SDRL NO 2.4% Range Resources Corp RRC 3.6% Trilogy Energy Corp TET 13.0%CNOOC Ltd 883 HK 1.7% EQT Corp EQT 2.4% Paramount Resources Ltd POU 7.9%Cairn Energy PLC CNE LN 1.5% Apache Corp APA 1.9% Crew Energy Inc CR 6.8%

Petroleo Brasileiro PBR/A U -8 Nabors Industries Lt NBR -3 Inter Pipeline Ltd IPL -1.

Ultrapar Participacoes SA UGPA3 BZ -1.5% Newfield Exploration Co NFX -1.9% Advantage Oil & Gas Ltd AAV -0.7%

Ecopetrol SA EC US -3.6% Denbury Resources Inc DNR -2.6% Canadian Oil Sands Ltd COS -0.9%

SA S .3% d .8% 2%SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Materials Fortescue Metals Group Ltd FMG AU 3.3% Newmont Mining Corp NEM 2.3% Detour Gold Corp DGC 10.0%POSCO 005490 KS 2.9% CF Industries Holdings Inc CF 2.0% Agnico Eagle Mines Ltd AEM 9.7%Sociedad Quimica y Minera de C SQM US 2.2% Vulcan Materials Co VMC 1.9% Torex Gold Resources Inc TXG 8.9%

Cia Siderurgica Na SID US -6 Allegheny Technolog ATI -1 CCL Industries Inc CCL/B -3.

Vale SA VALE/P US -3.0% MeadWestvaco Corp MWV -0.8% Canexus Corp CUS -0.6%

Gerdau SA GGB US -3.7% Owens-Illinois Inc OI -0.9% Interfor Corp IFP -1.2%

cional SA .3% ies Inc .1% 0%SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker ChgIndustrials Vestas Wind Systems A/S VWS DC 6.2% Cummins Inc CMI 1.6% Black Diamond Group Ltd BDI 2.0%

Atlantia SpA ATL IM 3.2% United Rentals Inc URI 1.5% Ritchie Bros Auctioneers Inc RBA 1.9%

Weir Group PLC/The WEIR LN 1.7% L-3 Communications Holdings In LLL 1.0% Russel Metals Inc RUS 1.5%

CCR SA CCRO3 -4 CH Robinson World CHRW -1 Transcontinental Inc TCL/A -2.

CNH Industrial NV CNHI IM -1.7% CSX Corp CSX -1.0% Aecon Group Inc ARE -1.5%

Alfa SAB de CV ALFAA MM -2.4% Kansas City Southern KSU -1.3% Newalta Corp NAL -1.8%

BZ .5% wide Inc .4% 7%SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Cons Disc SES SA SESG FP 2.3% Netflix Inc NFLX 2.1% AutoCanada Inc ACQ 3.5%

Ladbrokes PLC LAD LN 1.9% Scripps Networks Interactive I SNI 0.9% Dorel Industries Inc DII/B 1.9%

Hermes International RMS FP 1.6% Bed Bath & Beyond Inc BBBY 0.7% Magna International Inc MG 1.4%

Continental AG CON GR -2 Gannett Co Inc GCI -4 Aimia Inc AIM -2.

Bayerische Motoren Werke AG BMW GR -1.9% Interpublic Group of Cos Inc/T IPG -2.5% Corus Entertainment Inc CJR/B -1.6%adidas AG ADS GR -2.0% Staples Inc SPLS -2.8% RONA Inc RON -1.6%

.3% .0% 4%SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Cons Stap KT&G Corp 033780 KS 2.8% Mondelez International Inc MDLZ 1.3% Cott Corp BCB 2.6%Kerry Group PLC KYG ID 2.1% Brown-Forman Corp BF/B 0.5% Empire Co Ltd EMP/A 1.4%

Distribuidora Internacional de DIA SM 1.7% Sysco Corp SYY 0.4% Jean Coutu Group PJC Inc/The PJC/A 1.4%

Saputo Inc SAP 0.4%

Ambev SA ABEV US -3 ConAgra Foods Inc CAG -1 Alimentation Couche ATD/B -1.

Wal-Mart de Mexico SAB de CV WALMEXV MM -2.7% Kroger Co/The KR -1.1%

Fomento Economico Mexicano SAB FEMSAUBD MM -3.1% CVS Health Corp CVS -1.3% Metro Inc MRU -0.4%

.7% .3% -Tard Inc 2%SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME TICKER Chg

Health Care UCB SA UCB BB 1.8% Vertex Pharmaceuticals Inc VRTX 3.6% Valeant Pharmaceuticals Intern VRX 2.2%

Ramsay Health Care Ltd RHC AU 1.3% Laboratory Corp of America Hol LH 3.3% Catamaran Corp CCT 2.2%

Novo Nordisk A/S NOVOB DC 1.2% Quest Diagnostics Inc DGX 2.8% Extendicare Inc EXE 0.9%

Smith & Nephew PL SN/ LN -1 DENTSPLY Internati XRAY -2

Fresenius Medical Care AG & Co FME GR -1.7% Tenet Healthcare Corp THC -0.9%Essilor International SA EI FP -1.8% Mallinckrodt PLC MNK -2.1%

C .9% onal Inc .5%SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Financials Banco Popular Espanol SA POP SM 6.4% Ventas Inc VTR 2.2% Dream Unlimited Corp DRM 4.4%

Ping An Insurance Group Co of 2318 HK 5.1% Equity Residential EQR 2.2% Dundee Corp DC/A 2.7%Banco de Sabadell SA SAB SM 4.6% Boston Properties Inc BXP 2.0% TMX Group Ltd X 2.6%

Grupo Elektra SAB ELEKTR -6 Comerica Inc CMA -1 Fairfax Financial Ho FFH -2.

Banco Bradesco SA BBD US -4.1% Assurant Inc AIZ -1.0% Genworth MI Canada Inc MIC -1.0%

Banco do Brasil SA BBAS3 BZ -4.7% E*TRADE Financial Corp ETFC -1.0% Element Financial Corp EFN -1.6%

DE CV A* MM .0% .2% ldings Ltd 1%SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME TICKER Chg

Technology Nokia OYJ NOK1V FH 1.3% Visa Inc V 1.1% Sierra Wireless Inc SW 2.1%

Cap Gemini SA CAP FP 1.1% International Business Machine IBM 1.0% Descartes Systems Group Inc/Th DSG 1.2%

Computershare Ltd CPU AU 1.0% Linear Technology Corp LLTC 0.9% Celestica Inc CLS 1.1%

BlackBerry Ltd BB 0.0%

Cielo SA CIEL3 BZ -4 Oracle Corp ORCL -1 Avigilon Corp AVO -1.

Amadeus IT Holding SA AMS SM -0.7% Apple Inc AAPL -1.0%

ARM Holdings PLC ARM LN -0.7% Intuit Inc INTU -1.1% Constellation Software Inc/Can CSU -0.3%.7% .4% 4%SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME TICKER Chg

Telecom China Mobile Ltd 941 HK 1.0% AT&T Inc T 0.8% Manitoba Telecom Services Inc MBT 1.8%

Telenor ASA TEL NO 0.5% Windstream Holdings Inc WIN 0.7% Rogers Communications Inc RCI/B 1.0%Millicom International Cellula MIC SS 0.3% Verizon Communications Inc VZ 0.4% BCE Inc BCE 0.8%

CenturyLink Inc CTL 0.0% TELUS Corp T 0.3%

Koninklijke KPN NV KPN NA -1

Portugal Telecom SGPS SA PTC PL -0.9%

America Movil SAB de CV AMXL MM -1.4% Level 3 Communications Inc LVLT -0.1%

.6% Frontier Communications Corp FTR -0.4%SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg

Utilities Empresa Nacional de Electricid EOC US 1.6% SECURITY_NAME Ticker Chg Brookfield Renewable Energy Pa BEP-U 2.3%

Acciona SA ANA SM 1.5% NRG Energy Inc NRG 2.0% Superior Plus Corp SPB 1.9%

EDP - Energias de Portugal SA EDP PL 1.4% Exelon Corp EXC 1.3% TransAlta Corp TA 1.6%

Public Service Enterprise Grou PEG 1.2% Emera Inc EMA 0.5%

Edison International EIX 0.0% Innergex Renewable Energy Inc INE 0.4%Just Energy Group Inc JE 0.2%

Drax Group PLC DRX LN -1.3%

E.ON SE EOAN GR -1.7%CPFL Energia SA CPL US -2.2% Ameren Corp AEE -0.3%

AES Corp/VA AES -0.5%

Bold = move of more than 5%

Page 5 January 2, 2015

Market Elements

U.S. Market Movers

Energy Industrials Consumer Discretionary Consumer Staples Technology FinancialsSymbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %ChgESV 30.17 0.7% UTX 115.04 0.0% BBBY 76.73 0.7% CVS 95.10 -1.3% -0.2% -0.2%

-0.0% -0.7% -0.3% -0.2%-1.1% -0.4% -0.6% -1.1%

-0.2% -1.1% -0.4%-3.7% -0.9% -0.6%-0.1% -0.2% -0.6% -0.5% -0.4%

-0.6% -0.5% -0.8%

-1.0% -0.9% -0.1% -0.8% -0.4%-1.3% -0.9% -0.1%

-1.8% -0.7% -0.5% -0.2%

-0.0% -0.4% -0.1%

-0.6% -0.2%

-1.5% -0.1% -0.3%-0.1% -0.0% -0.2%

-0.8% -0.7% -0.8% -0.1%-0.1% -0.2% -1.5% -0.1% -0.4%

-0.6% -0.6% -1.1% -0.2%

-1.2% -0.4%

-0.2% -0.1% -3.2% -0.0% -1.0%

-0.5% -1.3% -0.4% -0.1% -0.5%-0.2% -0.5% -0.3%-0.8% -0.3% -0.8% -0.7%

-0.0% -0.4%

-0.0% -0.5% -1.3% -1.4%

-0.4% -0.6% -0.2%-0.4% -0.5% -0.2% -0.1%

-0.1% -0.3% -0.7% -0.5% -0.2%-1.7% -0.7% -0.3% -0.2%

-0.4% -0.9% -0.3%-0.8% -0.9% -0.5% -0.2%-0.9% -0.7% -2.5% -0.5% -0.1%-0.3% -0.7% -6.7% -0.6% -0.8% -0.1%

-1.4% -1.8% -0.7%

-0.4% -2.0% -0.5% -0.2% -0.1%-2.5% -0.7% -0.1% -0.8%

-0.2% -0.0% -1.0% -0.2% -0.9% -0.9%-0.4%

-0.4% -1.1% -0.3%-1.0% -0.0% -0.2%

-0.7% -0.9%

-0.9% -0.8% -0.7% -0.4%

-0.4% -0.4% -0.5%-0.2% -0.5% -0.2% -0.3%

-0.2% -0.6% -0.1% -0.3%-0.3% -1.4% -0.3%

-0.3% -0.2%-0.0% -0.6% -4.0% -0.3% -0.4%-0.8% -0.1% -0.0% -0.1% -0.4%

-0.7% -0.6% -0.5%-0.6% -0.2% -0.7% -0.6%-0.1%

-0.1% -0.8%-0.2% -2.4% -0.6%

-0.7% -0.3%-0.1% -0.3%

-0.3% -1.3% -0.1% -0.5% -0.1%

-0.2% -0.1% -2.9% -1.5% -0.1% -0.5%-0.2% -0.4% -0.8%

-0.5% -0.4% -0.7%-0.0% -0.4%-0.9%-0.0%

-0.9% -0.6%-0.6%

-0.1% -0.5%

-2.1%

-0.5%

-0.2% -1.5%

-0.1% -1.6%

-1.5% -2.8%-0.6% -1.3% -0.4%-1.1% -0.4%-0.6% -0.3% -0.4%-0.8% -0.2%

GOOGL 529.55 WFC 54.70 NE 16.84 1.6% BA 129.95 JCI 48.00 WBA 76.00 EBAY 56.21 0.1% USB 44.83 RIG 18.12 HON 100.23 0.3% BWA 54.74 SYY 39.85 0.4% YHOO 50.17 CMA 46.29 DO 37.23 1.4% LMT 193.31 0.4% GM 34.84 KR 63.53 AKAM 63.25 0.4% PNC 90.82 NBR 12.49 GD 138.45 0.6% F 15.36 SWY H 35.13 0.0% VRSN 57.19 0.3% BBT 38.65 HP 67.34 RTN 108.61 0.4% HOG 65.79 WFM 50.13 ACN 88.84 STI 41.73 RDC 23.72 1.7% NOC 146.46 MHK 154.57 WMT 85.90 0.0% CTSH 52.67 0.0% FITB 20.21 PTEN 16.65 0.3% PCP 238.44 PHM 21.26 COST 141.61 LDOS 43.14 RF 10.51 UNT 34.25 0.4% LLL 127.49 1.0% DHI 25 TAP 73.86 V 265.02 1.0% MTB 125.39 ATW 28.67 1.9% COL 84.62 0.2% NVR 1,252 STZ 97.50 MA 85.68 KEY 13.86 PES 5.57 0.5% ITT 40.44 WHR 193.01 BF/B 88.25 0.5% ADP 83.29 0.0% HBAN 10.50 SLB 85.67 0.3% FLR 60.69 0.1% NWL 37.86 KO 42.14 WU 17.93 0.1% AMT 99.67 0.8%HAL 39.49 0.4% EMR 61.79 0.1% MAT 30.47 PEP 94.44 PAYX 46.24 0.1% NYCB 15.94 BHI 56.17 0.1% ROK 111.04 HAS 54.97 MNST 108.16 FIS 62.41 0.3% HCBK 10.13 0.0%NOV 65.49 0.0% GE 25.06 COH 37.31 CCE 43.88 CSC 63.25 0.3% PBCT 15.15 CAM 49.88 MMM 164.06 VFC 73.76 DPS 71.60 FISV 70.62 BAC 17.90 0.0%FTI 46.52 TYC 43.61 RL 183.10 ADM 52.02 0.0% ADS 285.37 JPM 62.49 0.5%OII 58.85 0.0% CAT 91.88 0.4% NKE 95.03 MDLZ 36.79 1.3% ADBE 72.34 C 54.26 0.2%DRQ 76.55 DE 88.34 LVS 56.30 KRFT 62.64 INTU 91.21 LUK 22.63 0.9%OIS 48.64 PCAR 68.15 0.2% WYNN 146.89 GIS 53.11 CRM 59.24 CME 88.14 TDW 32.33 CMI 146.42 1.6% IGT 17.29 0.2% K 65.48 0.1% CTXS 63.48 MHFI 88.66 CRR 39.72 DHR 85.72 0.0% CCL 45.61 0.6% GMCR 131.97 ADSK 59.53 ICE 217.64 SPN 20.62 2.3% ITW 94.68 MAR 77.75 CPB 44.00 0.0% MSFT 46.76 0.6% MCO 95.89 0.0%CKH 74.10 0.3% ETN 67.93 HOT 80.68 CAG 35.82 ORCL 44.33 AXP 93.02 0.0%EXH 33.23 1.9% PH 129.16 0.2% WYN 85.39 MJN 99.94 SYMC 25.59 COF 82.49 0.0%BRS 65.48 DOV 71.98 0.4% MCD 93.26 HSY 103.71 CA 30.69 0.7% DFS 65.36 HLX 21.66 FAST 47.40 YUM 72.35 SJM 100.48 RHT 68.99 SLM 10.32 1.2%TTI 6.56 GWW 255.22 0.1% SBUX 81.44 TSN 39.95 ATVI 20.13 0.0% BK 40.46 IO 2.78 1.0% WM H 51.75 0.8% DRI 58.42 HRL 51.62 EA 46.87 BEN 55.49 0.2%HOS 24.77 RSG 40.57 0.8% CMG 678.40 MKC 73.95 CSCO 27.61 0.0% BLK 356.73 BAS 6.94 UPS 110.38 APOL 33.26 PM 81.02 QCOM 74.28 0.0% STT 78.35 MTRX 22.24 FDX 172.45 DV 44.28 MO 48.97 MSI 66.51 TROW 85.76 GIFI 20.05 3.4% CHRW 73.84 HRB 33.08 RAI 63.82 JNPR 22.45 0.5% NTRS 67.55 0.2%XOM 92.83 0.4% EXPD 44.42 OMC 75.93 LO 62.64 HRS 71.62 AMP 132.09 CVX 112.58 0.3% LUV H 42.69 0.9% IPG 20.25 PG 90.44 FFIV 130.33 AMG 210.43 COP 68.92 DAL 49.18 CBS 54.79 CL 69.04 AAPL 109.33 IVZ 39.14 OXY 80.65 0.0% UNP 118.61 DISCA 34.48 0.1% KMB 115.55 0.0% IBM 162.06 1.0% LM 53.69 0.5%MRO 28.60 1.0% NSC 109.15 CMCSA 57.35 CLX 103.87 HPQ 40.24 0.2% GS 194.41 0.2%HES 74.14 0.4% CSX 35.85 DTV 86.67 CHD 79.09 0.4% TDC 44.00 0.7% MS 38.71

MUR 50.49 0.0% Health Care SIRI 3.48 AVP 9.31 EMC 29.83 0.3% SCHW 30.22 0.0%

APA 63.83 1.8% Symbol H/L Last %Chg TWC 150.66 EL 75.59 STX 66.02 MMC 56.97

DVN 60.96 MDT 71.88 SNI 75.94 0.9% Utilities NTAP 41.46 0.0% AON 94.33 APC 82.29 BAX 73.31 0.0% DIS 93.75 Symbol H/L Last %Chg WDC 110.43 MET 53.91

Materials COV 102.07 TWX 84.93 SO 49.37 0.5% SNDK 97.88 PRU 90.11 Symbol H/L Last %Chg SYK 93.99 FOXA 37.85 EXC 37.57 1.3% FLIR 32.19 AFL 61.08 0.0%DD 73.71 BDX 139.86 0.5% VIAB 75.40 0.2% DUK 84.05 0.6% GLW 23.01 0.3% PFG 51.81 DOW 45.59 ISRG 525.57 GCI 30.66 NEE 106.69 0.3% APH 53.64 LNC 57.42 PPG 229.40 STJ 64.94 GPC 106.52 AEP 61.15 0.7% TEL 63.17 UNM 34.74 EMN 76.48 0.8% ZMH 112.59 AMZN 309 ETR 87.71 0.2% AVT 42.80 AIG 56.11 0.1%ASH 119.07 BSX 13.22 PCLN 1,142 0.2% PPL 36.36 0.0% XRX 13.75 L 41.74 FMC 56.97 HSP 61.87 1.0% EXPE 85.76 0.5% FE 39.20 0.5% AMAT 24.96 0.1% HIG 41.79 0.2%MON 119.74 0.2% MCK 207.20 NFLX 348.94 2.1% EIX 65.51 0.0% KLAC 70.29 0.0% GNW 8.43 CF 277.90 2.0% CAH 80.51 KSS 59.59 NU 53.74 0.4% LRCX 79.45 0.1% BRK/B 149.17 PX 129.95 0.3% ESRX 84.65 0.0% SHLD 32.74 PNW 68.64 0.4% INTC 36.36 0.1% TRV 105.44 APD 145.43 0.8% DGX H 68.97 2.8% M 65.69 POM 27.14 0.7% TXN 53.48 0.0% ACE 114.44 ARG 115.25 0.1% UNH 100.78 JWN 78.37 WR 41.17 BRCM 43.08 ALL 70.12 ECL 104.31 ANTM 125.46 JCP 6.29 GXP 27.96 FSLR 44.55 CB 102.91 SHW 262.44 HUM 142.99 TGT 75.33 HE 33.61 0.3% NVDA 20.13 0.3% PGR 27.04 0.1%SIAL H 137.31 0.0% AET 88.80 0.0% DG 70.78 0.1% CNL 54.79 0.4% ADI 55.54 0.0% XL 34.45 0.2%IFF 100.85 CI 102.83 0.0% FDO 78.89 IDA 66.31 0.1% MU 34.75 VNO H 119.37 1.4%ALB 60.31 0.3% AMGN 159.89 0.3% DLTR 70.35 ALE 55.42 0.5% CREE 32.07 PLD 43.43 0.9%VMC 66.98 1.9% REGN 410.16 0.0% TJX 67.96 EE 40.13 0.1% ALTR 37.10 0.4% BXP H 131.26 1.9%MLM 110.85 0.5% GILD 94.91 0.6% GPS 42.10 PNM 29.69 0.2% XLNX 43.60 0.7% SLG 121.32 1.9%OI 26.75 CELG 113.52 1.4% LB 86.05 UIL 44.30 1.7% LLTC 46.00 0.8% EQR 73.41 2.1%BLL 68.31 0.2% BIIB 342.01 0.7% ROST 93.73 NFG 70.04 0.7% AMD 2.69 0.7% AVB 165.81 1.4%AA 15.88 0.6% JNJ 104.52 0.0% URBN 35.10 UGI 38.02 0.1% MCHP 44.87 SPG 185.34 1.7%

FCX 23.55 0.8% PFE 31.33 0.5% GES 20.63 GAS 54.63 0.2% Telecom Services KIM 25.46 1.2%SCCO 28.44 0.9% MRK 57.19 0.7% BBY 38.79 STR 25.33 0.1% Symbol H/L Last %Chg MAC 84.14 0.8%NEM 19.34 2.3% ABT 44.90 HD 103.43 ATO 55.90 0.2% T 33.87 0.8% FRT 135.74 1.7%NUE 49.01 ABBV 65.89 0.6% LOW 67.70 PNY 39.44 0.0% VZ 46.96 0.3% PSA 187.23 1.2%CLF 7.03 BMY 59.51 0.8% SPLS 17.61 OGS 41.93 1.7% CTL 39.59 0.0% HST 23.81 0.1%X 26.59 LLY 70.06 1.5% TIF 105.50 WGL 54.60 0.0% FTR 6.64 HCP 44.85 1.8%ATI 34.39 ACT 259.13 0.6% AZO 616.79 NJR 61.25 0.0% WIN 8.30 0.7% WY 36.11 0.6%IP 53.24 AGN 212.75 0.0% ORLY 192.11 SWX 61.52 TMUS 27.30 1.3% CCI 79.51 1.0%MWV 44.04 TMO 128.12 2.2% KMX 66.47 SJI 59.01 0.1% S 4.24 2.1% VTR 73.31 2.2%

H/L = at a new closing 52- wk High/Low; / = within 10% of the 52- wk High/Low; Bold = move of more than 5%

Page 6 January 2, 2015

Market Elements

Canadian Market Movers

Energy Materials Industrials Consumer Discretionary Technology FinancialsSymbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %ChgPD 7.13 0.9% MX

-0.6% -1.1% -3.7%-0.2%-2.3%

-2.9%

-1.4% -0.2% -0.5%

-0.9%-3.5% -1.2% -0.9% -0.1%

-0.6% -0.2%

53.56 0.3% BBD/B 4.20 1.2% MG H 127.62 1.3% OTC 68.20 0.8% XIU 21.68 0.9%ESI 10.26 0.5% CUS 3.24 CAE 15.16 0.5% LNR 70.14 SUM 7.38 XSP 23.73 0.0%TDG 5.40 3.8% CHE-U 20.86 0.7% MDA 94.76 MRE 10.37 0.0% GIB/A 44.57 0.6% XIC 23.37 0.6%SCL 42.93 1.2% POT H 41.76 1.6% MAL 13.20 DII/B 40.80 1.9% DH 36.73 0.1% XDV 25.16 0.8%SES 17.35 2.2% AGU 112.14 1.9% HRX 11.50 1.5% BRP H 28.33 1.3% ISV 18.20 0.0% XFN 31.72 0.1%PSI 21.93 0.1% CCL/B 122.15 SNC 44.52 0.4% DOO 24.20 0.0% OTC 68.20 0.8% CPD 16.19 0.0%MTL 21.57 1.2% ITP 18.62 0.0% ARE 10.55 PSG H 21.31 0.8% CSU 344.51 ZEB 23.60 0.4%CEU 6.55 3.1% WPK H 33.78 0.8% BDT 11.87 GIL 65.79 0.1% DSG 17.46 1.2% RY 80.70 0.5%TCW 5.82 4.4% CAS 7.31 4.1% WSP 34.52 AYA 28.74 0.6% CMG 12.09 1.2% TD 55.22 0.3%CFW 10.25 2.3% TCK/B 16.13 1.5% SOX 7.37 GC 20.40 ESL 41.08 BNS 65.54 EFX 16.56 1.0% TRQ 3.85 7.2% BAD 26.29 GH 13.90 0.0% RKN 3.73 BMO 82.55 0.4%TESO US -9.2% -1.5%

-0.7%-1.9% -0.7%-1.0%-0.4% -1.0%

-0.5% -0.7% -0.2% -2.1%

-0.8% -0.3%

-2.3% -1.5% -0.2%

12.91 0.7% FM 17.13 3.7% BLD 2.15 IT 13.01 KXS 18.50 0.0% CM 100.36 0.5%FRC 9.28 3.2% LUN 5.83 1.9% LMP 16.82 2.5% TRZ/B 8.78 0.0% ABT 8.06 NA 50.05 1.2%SU 37.35 1.2% S 3.00 0.0% TIH 28.63 0.4% WB 20.13 BB 12.74 0.0% CWB 32.51 IMO 50.18 0.2% HBM 10.61 4.8% WPT 4.52 2.9% QSR 45.04 WIN 3.56 2.2% LB 50.06 0.1%HSE 27.78 1.0% TCM 1.99 3.1% AFN 56.50 0.0% MTY 33.56 SW H 56.37 2.1% MIC 36.61 CVE 24.38 1.7% CS 2.11 3.9% NFI 13.41 BPF-U 21.77 0.7% MITL US 10.72 0.2% HCG 48.23 0.5%IOC US 49.05 0.5% MDI 6.09 6.6% ATA 15.38 AW-U 26.51 SVC 3.30 0.9% EQB 64.25 CNQ 36.30 1.0% TKO 1.25 5.0% KLS 6.76 0.0% PZA 14.00 0.0% CDV 4.03 1.0% FN 23.80 1.2%ECA 16.25 0.4% RIO 2.96 4.9% XTC 11.94 1.2% ECI 14.38 EXF 4.11 1.4% MKP 14.35 CPG 27.34 1.5% ABX 12.86 2.7% FTT 25.25 0.0% AIM 14.26 ET 17.33 FC 12.37 TOU 39.94 3.2% G 22.16 3.0% RUS 26.28 1.4% MDZ/A 27.00 1.3% GSIG US 14.47 OCX 67.83 0.5%TLM 9.19 0.9% K 3.43 5.2% RCH 56.89 CJR/B 22.59 PUR 7.51 1.6% X 51.90 2.5%COS 10.33 AEM 31.72 9.6% MIL US 7.04 SJR/B 31.45 0.3% AVO 18.92 EFN 13.91 ARX 25.75 2.3% ELD 7.53 6.3% WJX 30.72 QBR/B 31.95 0.0% VNP 2.42 IGM 46.58 0.5%MEG 20.59 5.3% YRI 4.70 0.2% CVL 20.64 0.2% CCA 70.98 CLS H 13.80 1.0% CIX 32.44 0.4%VET 58.10 1.9% IMG 3.30 5.0% RME 9.68 1.8% XSR 6.58 8.5% CSIQ US 24.69 2.0% AGF/B 8.63 1.6%BTE 19.77 2.3% IGT 13.48 0.9% TCL/A 16.11 CGO 60.93 VXS 1.80 5.8% DC/A 13.16 2.7%POU 30.35 7.9% FNV 57.72 0.8% BIN 35.12 0.5% LGF US 31.22 U 5.17 0.3%

PRE 7.36 2.3% CG 6.19 2.4% NAL 17.32 CGX 44.76 Utilities SII 2.50 2.4%PEY 34.93 4.3% NGD 5.21 4.6% RBA H 31.80 1.8% IMX 35.35 Symbol H/L Last %Chg AD 35.32

PSK 30.40 AGI 8.62 3.8% RBA US 27.03 0.5% DHX/B 9.75 0.4% XBB 30.76 0.0% GS 27.56 ERF 11.55 3.2% SMF 3.13 5.0% BYD-U 46.15 TRI 46.95 0.1% XCB 21.28 0.0% GCG/A 17.39 UPL US 13.16 0.0% NG 3.63 6.4% DCI 19.41 TS/B 6.47 XRB 23.66 GMP 6.20 WCP 11.68 2.0% DGC 10.44 10.0% BDI 13.00 2.0% Y 19.38 XSB 28.64 CF 7.85 0.5%VII 17.59 0.5% PVG 7.24 7.8% KBL 45.97 UNS 30.37 FTS 31.75 0.3% MFC 22.24 0.2%PWT 2.48 2.0% PHY/U 9.80 HNL 2.55 HBC 24.40 BIP-U 44.42 0.3% GWO 33.52 PGF 3.80 3.8% SEA 9.16 3.9% MSI H 17.47 0.0% SCC 11.41 1.5% EMA 33.76 PWF 36.13 TET 8.94 13.0% GBU 0.41 3.7% STN 31.92 0.0% CTC/A 122.22 VNR 15.81 0.1% SLF 42.12 0.4%BNP 7.49 2.6% KGI 3.62 8.0% WJA 33.12 DOL 59.28 SPB 13.26 POW 31.72 ATH 2.67 3.0% BTO 2.04 7.3% CHR/B 4.51 RET/A H 7.80 1.1% JE 6.04 0.0% IAG 44.61 0.4%BNE 42.72 2.5% XGD 9.43 3.5% AC 11.83 GLN 25.25 0.2% CU 39.50 FFH 595.93 NBZ 8.26 4.4% SGR 0.04 0.0% HNZ/A 20.27 RON 13.63 ACO/X 52.05 IFC H 84.36 0.6%FRU 19.48 1.8% P 4.68 4.6% EIF 23.10 EH 19.67 BEP-U 31.05 XRE 16.15 0.6%RRX 7.43 1.2% AR 1.91 4.3% CNR 80.23 0.2% IDG 11.90 0.0% MXG 3.04 1.3% HR-U 21.95 1.0%PXT 7.58 0.0% TXG 1.34 8.9% CP 222.03 ACQ 46.06 3.5% RNW 11.39 0.3% REF-U 45.90 0.2%BIR 8.30 6.1% GSC 0.27 6.0% TFI 29.65 0.2% LNF H 18.15 1.3% NPI 17.73 DRG-U 8.60 0.3%SGY 3.80 3.2% LSG 0.84 7.6% STB 7.23 0.1% GBT/A 16.01 0.0% ATP 3.53 0.9% CUF-U 18.76 0.8%

AOI 8.50 0.0% CNL 2.04 10.2% TMA 6.76 0.1% CPX 26.20 CRR-U 12.99 0.5%

KEL 7.20 2.8% AUQ 3.98 3.3% WTE 31.52 AQN 8.16 AP-U 37.68 0.6%

NVA 7.49 1.0% RMX 1.19 6.2% Consumer Staples BLX 13.25 D-U 25.44 1.1%

BNK 3.30 1.2% OR H 16.60 1.3% Symbol H/L Last %Chg AXY 0.31 BOX-U 27.09 0.4%

BXE 4.38 3.5% SSL 4.41 11.9% Health Care PJC/A H 28.70 1.4% INE 10.25 BEI-U 62.04 0.8%

CR 6.32 6.7% OGC 2.14 5.9% Symbol H/L Last %Chg L 62.66 0.8% CSE 4.41 0.2% CAR-U 25.33 0.7%OXC 6.03 2.3% GUY 2.93 3.9% NVDQ US 16.31 WN 101.07 0.7% CUP/U 10.25 0.0% NPR-U 23.57 LEG 2.24 3.7% CGG 2.10 1.9% DR 18.52 0.6% MRU 92.89 TA 12.93 0.3% REI-U 26.72 1.0%PPY 9.78 5.7% ASR 2.46 5.5% ACC 6.95 ATD/B 48.13 CWT-U 27.48 0.6%

TOG 7.96 3.3% NSU 4.60 2.6% LW 14.02 0.2% EMP/A H 88.84 1.4% MRT-U 18.09

CJ 13.26 SLW 24.53 3.8% RLC 9.00 NWC H 26.47 1.0% Telecom Services AX-U 14.35 1.1%

AAV 5.52 PAA 11.26 5.0% CCT H 61.44 2.2% LIQ 15.26 Symbol H/L Last %Chg CSH-U 11.86

LTS 1.23 3.3% FR 6.14 5.3% PLI 1.94 1.6% CSW/A 23.05 0.3% BCE 49.45 0.1% INN-U 5.85 SPE 2.82 1.0% SSO 6.22 6.6% GUD 6.99 1.0% BCB 8.22 2.6% T 41.38 0.8% NWH-U 9.28 0.0%LRE 1.53 2.0% SVM 1.59 3.9% TKM 17.40 SAP H 35.06 0.4% BA 28.20 BAM/A H 59.18 1.6%RMP 4.81 5.0% PHS/U 6.15 QLT 4.77 3.0% MFI 19.70 1.2% MBT 31.41 -0.4% FCR 18.95 1.5%KEY 81.16 0.1% DPM 2.97 8.3% VRX H 169.99 2.2% AGT 27.40 RCI/B 43.41 0.2% DRM 10.12 4.4%PKI 22.02 1.2% DDC 20.88 0.0% CXR H 47.61 1.8% RSI 4.73 MRC 149.50 ENB H 60.49 1.2% THO 16.64 3.0% CPH 16.87 0.7% PBH 24.55 0.5% BPY-U 27.00 2.0%TRP 58.02 1.6% LUC 2.03 COM 11.00 3.0% CLR 11.61 GRT-U 41.44 0.4%PPL 43.35 2.3% III 9.99 0.1% EXE 6.58 0.9% SOY 13.94 1.3% KMP 10.31 0.4%IPL 35.52 LIF 18.71 0.5% HLF 22.70 0.2% MEQ 37.70 ALA 44.12 1.7% WFT H 67.99 2.2% MRD 19.30 GEI 27.38 0.6% CFP 29.73 0.3% FSV 59.73 0.7%VSN 18.38 0.1% SJ 33.21 1.4% AIF 20.58 ENF H 41.08 1.8% IFP 21.69 BRE 13.02 0.4%CCO 19.28 1.2% ANS 3.35 0.6%

-1.6%-0.1% -1.5%

-0.8% -0.5% -1.3% -1.6% -0.1% -2.0%

-0.9%

-2.7% -0.2%-2.4%

-1.8% -0.1%-1.4% -0.1%

-0.6% -0.4%-3.0% -2.2%

-0.2% -0.7% -0.1% -2.3% -1.0% -0.1%

-0.3% -0.7%

-1.2% -3.4% -0.6% -0.2%-0.7% -0.1%

-0.4%-0.7% -0.2% -0.2% -0.1%-0.8%

-0.3% -0.2% -2.1% L -1.9% -1.5% -0.2%

-0.4% -1.9% -0.4%

-0.7%-0.6%

-0.4%

-0.3% -0.2%

-0.1%

-4.6%

-0.7%

-1.9% -0.8%-0.4%

-1.1% -1.2%

-0.3%

-1.8% -1.1%

-0.7% -0.9% -0.4%

-2.1%

-2.1% -0.1% -0.1%

-0.5%-0.4% -0.3%

-7.3% -2.1%

-1.1% -0.5% -1.7%

-1.1%-1.1%

H/L = at a new closing 52- wk High/Low; / = within 10% of the 52- wk High/Low; Blue = S&P/TSX 60 member, Italics = ETF, Bold = move of more than 5%

Page 7 January 2, 2015

Trends & Inflection Points January 5, 2015Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Simple New Year’s Resolution CLICK HERE for a printer friendly version of this report including research disclosures.

Did you make any New Year’s resolutions? It’s not toolate. Here is a simple one – Figure 1.

o Go long, or overweight the strong, whichcontinues to be technology and health care.

o Go short, or underweight the weak, whichcontinues to be energy and materials.

Our momentum buy and sell lists curtail the overbought stocksin the case of longs and oversold in the case of shorts;

o The largest 10 technology and healthcare momentumbuys are shown in Figure 2.

o The largest 10 resource momentum sells are shown inFigure 3.

Figure 1: Sectors vs MSCI World

Figure 2: Largest 10 Tech & HCare Mo Buys vs MSCI World Figure 3: Largest 10 Resource Momentum Sells vs MSCI World

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

Trends & Inflection Points January 2, 2015Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Inside TIPs – Capitulation CLICK HERE for a printer friendly version of this report including research disclosures.

Over the two-week holidayperiod, we showcase ourfavourite tools from our TIPsSuite (“Click Here” to the left),which is also available as abookmarkable link with BMOResearch access.

How many ways can you define Capitulation? Many, and our Capitulation monitorspells them out. We apply the same set filters to three universes: global, North Americanlisted and Canadian.

o Our opening filter details stocks that are oversold and also sport abnormallywide Bollinger bands. Here, as with our Bollinger Band Breakout filter forlongs (see TIPS 141229), we take advantage of the fact that volatility is meanreverting and highlight the oversold stocks where volatility will ultimatelycontract – Figure 1.

o Some more filters include stocks with RSI below 30, and stocks that are off atleast 5% in the past session.

Figure 1: Oversold Stocks With Wide Bollinger Bands

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

9

Trends & Inflection Points December 29, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Inside TIPs – Long/Short Filters CLICK HERE for a printer friendly version of this report including research disclosures.

Over this two-week holidayperiod, we will showcase ourfavourite tools from our TIPsSuite (“Click Here” to the left),which is also available as abookmarkable link with BMOResearch access.

Our Long/Short monitor is for clients just caring about absolute returns.

o We have five long and five short filters that act on both a NorthAmerican-listed and a global universe. Short names of the sleeves andtooltips define the attributes that we are keying in on.

Our link opens to show our favourite long filter, the Bollinger Band Breakout. Thisfilter is based on the fact that volatility is mean reverting, and we capture the upsidemoves out of a low volatility environment. The current list is shown in Figure 1.

Figure 1: Bollinger Band Breakouts

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

10

Trends & Inflection Points December 24, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Inside TIPs – Equity Tactical Asset Allocation CLICK HERE for a printer friendly version of this report including research disclosures.

Over this two-weekholiday period, we willshowcase our favouritetools from our TIPs Suite(“Click Here” to the left),which is also available asa bookmarkable link withBMO Research access.

Our Equity Tactical Asset Allocation product details the relative performance against a numberof benchmarks including,

o Major equity indices vs MSCI World – Figure 1, and the S&P 500

o Major regions vs MSCI World

o Emerging Markets vs MSCI EM

We also dig into the granularity of which stocks this performance may be attributed to in thefinal three sleeves of the report. This is very important around the turning points.

Figure 1: Equity Markets vs MSCI World

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

11

Trends & Inflection Points December 23, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Inside TIPs – ETFs CLICK HERE for a printer friendly version of this report including research disclosures.

Over this two-week holidayperiod, we will showcaseour favourite tools from ourTIPs Suite (“Click Here” tothe left), which is alsoavailable as abookmarkable link withBMO Research access.

Our Exchange Traded Funds monitor offers insights into the performance of manyinvestments in a variety of asset classes:

o The industry and sector monitor was instrumental in detailing when MLPs rolledover and has helped to keep our focus sharp on what is working – Figure 1.

o The bond sleeve currently details the mix of uptrends in most bonds, yet alsohighlights the downtrends for TIPs, high yield and EM markets.

o Regional & Style ETFs allow an efficient view for the globe trotter.

Figure 1: Largest 20 Industry & Sector ETFs vs S&P 500

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

12

Trends & Inflection Points December 22, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Inside TIPs – Sector & Industry Report CLICK HERE for a printer friendly version of this report including research disclosures.

Over this two-week holidayperiod, we will showcase ourfavourite tools from our TIPsSuite (“Click Here” to theleft), which is also availableas a bookmarkable link withBMO Research access.

Our Sector & Industry Report contains a sector overview for many markets; the main onesare shown below – Figure 1.

o This is a tunable link and the top left menu can be adjusted to show;

Global Industries

U.S. Subindustries

CDN Subindustries

European Industries

Aussie Industries

Figure 1: Sector & Industry Report – Global Sector Page

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

13

Trends & Inflection Points December 19, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

99 Technology Momentum Buys CLICK HERE for a printer friendly version of this report including research disclosures.

Two positive equity themes of this year that show no signs of stopping are the outperformances of health care and technology.

o Our Tech/Media/Telecom link (see our TIPS Suite for updates) details 99 Technology momentum buys using ACWITechnology as the denominator – Figures 1-3.

It will be quiet over the next few weeks, a good time to pick up some new stock ideas.

Enjoy.

Figure 1: Technology Momentum Buys - The First 25 (continued at this link, and on page 2)

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

14

Trends & Inflection Points

Figure 2: Technology Momentum Buys - Part 2 (continued page 3)

Page 2 December 19, 2014 15

Trends & Inflection Points

Figure 3: Technology Momentum Buys - Part 3

Page 3 December 19, 2014 16

Trends & Inflection Points December 18, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Oil – Santa Takes on Mack the Knife

The high yield corporate bond market forenergy lost two years of gains in the pasttwo weeks…and yesterday was the firstday where a bid was found – Figure 1.

The oil price, well, it is miles away froma positive reversal on any chart except thehourly, but it found a bid from the depthsof despair – Figure 2.

We will haul out another filter for energy shares (yesterday’s rally took mostenergy stocks out of the Bollinger band filter we highlighted a week ago).Energy stocks with RSIs below 30 are shown in Figure 3.

o Our Capitulation Filters link, available daily in our TIPs Suite (clickhere to the left) shows more ways of looking at oversold stocks.

We particularly like the Dee Dee Bridgewater version of Mack the Knife forthe patient beginning, the changes in tempo, the scat, and fade at the end.

o Be careful of the fade.

Figure 1: Energy High Yield Corporate Bond Index Figure 2: WTI

Figure 3: North American Listed Energy Shares with RSI < 30

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

17

Trends & Inflection Points December 17, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

This Break is Different - OEX

Yesterday, the core of the US equitymarket, the S&P 100 (OEX), broke itsuptrend. Consider this a stop loss point– Figure 1.

o Yesterday Implied correlation(discussed here) for the 50largest stocks in the S&P 500had its largest 1 day jump in theseries (ICJ) – Figure 2.

The portfolio effect, orrisk diversification, isgoing out thewindow.

Yes we are going to point fingers at the high yield bond market again, whereevery sector continued to fall yesterday – Figure 3.

o This view is updated daily within our CDS Trends in the TIPs Suite(click here to the left).

o When you open our CDS link, the opening view is credit trends ontoo-interconnected-to-fail banks. That is the most important viewon credit market that there is – the stability of the banking system.We highlight the core banks whose CDS widened by more than 5%yesterday. Topping the list are banks with large Russian exposure –Figure 4.

Paraphrasing Tom King – Keep the portfolio strong, and wait for the signs.Bank credit risk continues to rise this morning (we have created aBloomberg CIX “.PrimeTime” available on request).

Figure 1: S&P 100 Index – Broke Trend Yesterday Figure 2: S&P Implied Correlation (top) and 1d ROC (bottom)

Figure 3: Price Trends on High Yield Bond Indices Fig4: Too-Interconnected-To-Fails Widening 5% Yesterday

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

18

Trends & Inflection Points December 16, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Breaking Below October Lows CLICK HERE for a printer friendly version of this report including research disclosures.

On the high yield front, the epicenter ofcontagion, the consumer discretionary andutility sectors broke below October lowsyesterday, leaving just health care andtechnology as the lonely duo yet to do so –Figure 1.

On the equity front, suffering collateraldamage from the high yield meltdown, a number of indices broke back below their price uptrends yesterday – Figure 2.

o Most have not yet broken belowOctober lows, but give them time…

Crude continues to plunge (WTI broke below $54 this AM).

In the currency market, the yen has switched over from the Abenomics,deflation-fighting (and if that’s not working we may add) surge, to thesafe-haven, closest major bond yield to zero friend.

o Mind the change.

Bank risk, and therefore implied correlation, is still low, but crudecontinues to plunge.

o So we heed the fact that the cost to protect banks against defaultbroke above a narrowing trend yesterday – Figure 3.

And consider this environment one in whichcorrelations will tend towards one – Figure 4.

Figure 1: Corporate High Yield Indices Figure 2: Equity Indices Breaking Price Uptrends

Figure 3: 5y CDS on Too-Interconnected-To-Fail Banks Figure 4: CBOE S&P 500 Implied Correlation (ICJ)

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

19

Trends & Inflection Points December 15, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

High Yield Contagion

Last week, the markets saw more than just a hint of contagion.

o The high yield (HY) bond market for energy, whichrepresents over 13% of the market, and which hasgiven up three years of gains since July, infectedMaterials and Industrials (representing another 18%of the market) as these HY indices broke below theirOctober lows – Figure 1.

Even Health Care fell 1% last week.

All HY sectors have now broken belowtheir 50d MAs.

For blue chip, non-resource driven markets like the S&P500, it is investment grade that really matters.

o IG widened 16%, and broke above a narrowingtrend last week – Figure 2 (page 2).

o Correlation of S&P 500 moves to HY isactually high, and increasing – Figure 3.

As long as the energy falling knife continues its decent,look for contagion to continue to render investment gradestocks and bonds a skittish investment.

Figure 1: Bloomberg Corporate High Yield Bond Index (Top) & Largest 5 Sub-Components

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

20

Trends & Inflection Points

Figure 2: North American 5Y Investment Grade CDS Index

Figure 3: S&P 500 & High Yield Bond Index (Top) With 30 Day Correlation of Returns (Bottom)

Page 2 December 15, 2014 21

Trends & Inflection Points December 12, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Insure the Portfolio

When we go globetrotting with our Index Members andtune this to show Insurers, we see a blend of outperformersand underperformers, and many in each category are beinglauded above their trend channels, i.e., the market isrotating there. Collectively, global insurance has beenmarket performing, and this has tilted towardoutperformance – Figure 1.

o Price performance? It’s not too impressive,hence our title “insure the portfolio” – Figure 2.

The global perspective is shown in Figure 3.

o Yesterday, in the U.S. market, LifeCos and Multi-line broke above underperforming trends, as did theinsurance ETF.

o In Canada, you know, you know.

o In Europe, insurance is a very consistentoutperformer, and interestingly the STOXX 600insurance ETF is now starting to look good from aglobal perspective.

Figure 1: Insurance vs MSCI World Figure 2: MSCI World Insurance

Figure 3: Largest 50 Global Insurance Stocks vs MSCI World – See Link for Full List

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

22

Trends & Inflection Points December 11, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Energy End Game CLICK HERE for a printer friendly version of this report including research disclosures.

It’s about the strong hand, SaudiArabia, playing its hand, blessing ifnot orchestrating (for thoseconspiracy theorists), the slide incrude, much to the chagrin of theweaker hands. The (very) stronghand weakened for the first dayyesterday as the cost to protectSaudi Arabia from default awokewith a 7% move – Figure 1.

o The oil slide is in its finalinnings.

The high yield bond market for energy remains no bid, so no change there – Figure 2.However, high yield will ultimately become the new equity, and while bond portfoliomanagers feel stuffed, energy portfolio managers with their no bid equities, ought toconsider going higher in the capital market structure with no bid bonds.

Within our TIPS Suite (Click Here to the left), there is a tool titled “CapitulationFilters”. It is time to start opening and, even if one is not using it today, gettingfamiliar with the filters there. The opening sleeve shows stocks that are oversold withabnormally wide Bollinger bands. It’s rather full.

o We narrowed in on the energy stocks with good dividend growth profiles.The largest 15 are shown in Figure 3. A broader list is shown in Figure 4on the following page, and the full list is found here.

Figure 1: Kingdom of Saudi Arabia 5Yr CDS Figure 2: Bloomberg High Yield Energy Bond Index

Figure 3: Capitulation – Oversold With Wide Bollinger Bands – Largest 15 Energy Stocks With Good Dividend Growth Profiles

23

Trends & Inflection Points

Figure 4: Capitulation – Oversold With Wide Bollinger Bands – Energy Stocks With Good Dividend Growth Profiles – See Full List Here

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

Page 2 December 11, 2014 24

Trends & Inflection Points December 10, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Best of Canadian High Yield

Our title implies that there are high yield stocks that are not working, andindeed that’s the case. BMO Canada, found within our TIPs Suite, containsa sleeve of over 200 Canadian stocks that yield more than 3%. One-third ofthe grouping is resources, which we continue to recommend avoiding.

The focus on Canadian high yield is in an environment where;

o Canadian small and midcap benchmarks are trending lower, andthe large cap index sports a broken uptrend, so it is veryreasonable for investors to search for dividend yield; and yet,

o segments of the high yield bond market are either struggling rightat 50d MAs or are indeed trending lower.

Energy continued to sport an outsized loss yesterday.

We toggled to price trends, and our filters sliceand dice the stocks nicely into categories. Thebottom line here is that if this was the viewafter loading a portfolio into our system (thistutorial shows you how you can do that), wewould call that portfolio problematic – Fig 1.

We selected the momentum buys, and furtherused our “yield” control, which narrows in onthe stocks with positive 1, 3, and 5y dividendgrowth records to show the best of Canadianhigh yield – Figure 2.

Figure 1: Dashboard View of Price Trends on Canadian Stocks With Indicated Dividend Yield >3%

Figure 2: Best of Canadian High Yield

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

25

Trends & Inflection Points December 9, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Cutting Against the Grain – IFP, WY CLICK HERE for a printer friendly version of this report including research disclosures.

From a Canadian Perspective, the bestgroup within the materials sector isforest products.

From a U.S. perspective, note that thetimber ETF is breaking above adowntrend vs the S&P 500 (the onegreen materials spot in a sea of red) –Figure 1.

Forest Products is currently the onlyResource Subindustry with a 1st decile Relative Strength breadth ranking – Figure 2.

We continue to be concerned about high yield credits, where energy has ledmaterials, industrials, and now the aggregate high yield bond index belowOctober lows. The two liquid forest products CDS trackers, Louisiana-Pacific,and Norbord, are breaking the other way, from weak to strong (Weyerhaeuser isgoing from strong to stronger). The CDS for LPX, the largest equity mover offof the Norbord/Ainsworth merger news, tightened 4% yesterday.

Interfor (IFP CN) is breaking out of a consolidation pattern, and doing so with aslope of 50%/year, which pales in comparison to the torque it has displayed overthe past few years – Figure 3.

The largest lumber stock is amongst the least volatile, Weyerhaeuser (WY US)is trending higher, beating the S&P 500, and its CDS is trending (actuallydiving) lower – Figure 4.

Figure 1: Global Timber ETF (CUT US) vs S&P 500 Figure 2: Forest Products Relative Strength Breadth Decile

Figure 3: Interfor Corp (IFP CN) Dvd Adj Stock Price Figure 4: Weyerhaeuser (WY US) Dvd Adj Stock Price

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

26

Trends & Inflection Points December 8, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Energy Update CLICK HERE for a printer friendly version of this report including research disclosures.

This morning Brent takes outthe December 1st spike low.

Energy shares started leg 2 oftheir sharp decline at the endof November, and still have8% downside risk until ourtechnical target is met –Figure 1.

The Energy high yield corporate bond market, which was at an all-time high in June ispriced at a 2year low, and is falling at a rate of 30%/year. The short-term performance; nobid – Figure 2.

o Keeping on the credit market, we continue to see stocks which have downsiderisk relative to where credit is priced. The largest divergences are found inCanadian Natural Resources and Weatherford International – Figure 3.

Our energy momentum sell list is still large, even though it excludes oversold stocks –Figure 4. Our energy focused tailored link is available daily in our TIPS Suite.

Figure 1: ACWI Energy Index Figure 2: Bloomberg Energy High Yield Bond Index

Figure 3: Canadian Natural Resources Equity/CDS Overlay Figure 4: Largest 15 Mo Sells – See Full List Here

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

27

Trends & Inflection Points December 5, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

CDN Banks – Double Top CLICK HERE for a printer friendly version of this report including research disclosures.

Canadian banks have formeda double top, and are nowbreaking down – Figure 1.

Most are at 1mo lows;we suppose the issuecan be spotted bylooking at the geography of the onebank at a 12mo low:Canadian WesternBank.

The ominous thing is that the relative performance of Canadian banks to the S&P/TSXcomposite looks like smooth sailing, so the call is really not to underweight themrelative to the market; it is to prepare for more market weakness – Figure 2.

If one is running a Canadian balanced fund, one should consider upping the bondrepresentation – Figure 3.

o Global bond yields continue to trend lower, as do inflation expectations.

o If you flip the relative performance, and use Canadian bonds as thedenominator, you see what has been outperforming is breaking down, andwhat has not (small caps, trusts, prefs, and even REITs) is at a new 1-2month low- Figure 4.

Figure 1: S&P/TSX Diversified Banks Figure 2: Diversified Banks vs S&P/TSX Composite

Figure 3: Canadian Bond ETF (XBB) vs S&P/TSX Composite Figure 4: Canadian ETFs vs CDN Bonds (XBB)

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

28

Trends & Inflection Points December 4, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Technology Strength

We have cycled through shorts on the weakestsectors recently, and will now look at the positiveones. Technology and Health Care remain on thepositive side of the ledger in our breadth work.Technology sectors are in outperforming trendsagainst local benchmarks, and are pushing toaccelerate this outperformance – Figure 1.

Our technology relative strength breadth reading has held at theupper end of neutral for a month. We expect it will continue toimprove into positive territory – Figure 2.

Using MSCI North American technology constituents as anexample, technology shares are a blend of outperformers andunderperformers breaking above underperforming trends- Figure 3.

Figure 1: Technology Sectors vs Local Markets Figure 2: Technology Relative Strength Z-Score

Figure 3: Technology Shares vs MSCI North America

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

29

Trends & Inflection Points December 3, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Canadian Small Cap Momentum Buys

The TSX SmallCap index, with a 45% weight toward resources, looks awful; with weakness only bettered by the TSXVenture index and its 70% weight toward resources.

o We do not see a change any time soon.

Today’s note offers ideas of shelter from the storm; Canadian small caps (market cap less than$5bn) that are trending higher, above rising moving averages, and not overbought – Figure 1.

The full list of 62 momentum buys is found at this link.

Figure 1: Largest 25 Canadian Small Cap Momentum Buys – See Full List Here

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

30

Trends & Inflection Points December 2, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

High Yield – Trim Time

While the oil price, and to a lesser extentenergy equities, stabilized a bit yesterday,the high yield corporate bond market didno such thing. The Bloomberg HYenergy corporate bond index sufferedthe worst day since the indices werecreated in 2010. In fact, all sectors ofthis series fell yesterday, and yes thecorrelation to energy is high – Figure 1.

Outside of the credit market, we would call the MSCI North American highyield index a momentum buy. It is trending higher, above rising movingaverages, and is not overbought. Within the context of expected contagion toenergy, we will point out that the index is rolling over from an overboughtstate just one week ago, and is near the top of its channel – Figure 2.

Clearly “sell” is too strong a word, at least in the North American context(Figure 2), so we will use “trim”. We advocate trimming the high yield stocksbreaking below outperforming trends against the MSCI World High YieldIndex – Figure 3. The high yield momentum sell list is found here.

Figure 1: Bloomberg USD High Yield Energy and High Yield Indices (Top) and Rolling 30 Day Correlation of Returns (Bottom)

Figure 2: MSCI North American High Yield Index Figure 3: High Yield Stocks Breaking Outperforming Trends vs MSCI World High Yield Index

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

31

Trends & Inflection Points December 1, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Completing the Trio – Industrial Sells CLICK HERE for a printer friendly version of this report including research disclosures.

For months now, it hasbeen Energy, Materialsand Industrials as theweak trio tounderweight in ourgroup selection report.

Last week we coveredEnergy and Materialshorts, today we delvein to Industrials.

The bond market ultimately plays its hand, with lower rates, and flattening yield curves, beingan indication of lower economic activity, which leads to industrials to underperform – Figure 1.

Of the weak trio, industrials are most optimistically priced; however, we see this strength asbeing at the top of a range, given the pull of rates – Figure 2.

The list of largest industrials breaking below outperforming trends is clearly dominated by therails, which are following the slide in shale optimism – Figure 3. That slide is still in motion.

o Our breadth reading on rails moved down to a neutral 5th decile on Friday.

The largest industrial momentum sells are very Eurocentric – Figure 4.

o The full list of 84 are found here.

Figure 1:Global (Top) and US (Bottom) Industrial Relative Performance vs US 10-Year Bond Yield

Figure 2: Global Industrial Relative Strength Breadth Score

Figure 3: Largest 15 Global Industrials Breaking Below Outperforming trends vs S&P 500 – Click Here For Full List

Figure 4: Largest 15 Global Industrial Momentum Sells vs ACWI – Click Here For Full List

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

32

Trends & Inflection Points November 28, 2014Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Copper Breakdown – Short CUM, ANTO CLICK HERE for a printer friendly version of this report including research disclosures.

Keeping with the theme of discount shopping (US Retail onTuesday, Energy shares on Wednesday, and Thursday) yet beingdiscussed amidst the torrent of OPEC / shale oil price war stories, wehighlight the breakdown in copper – Figure 1.

Copper stocks have been treading water for a month now, in asimilar fashion to the copper price. We consider this the bid to sellinto – Figure 2.

o For those considering a short copper stocks, long copperposition, there is actually a nice counter-trend rally in thestocks relative to the commodity to sell into – see link.

Using our Mining Link, available daily in our TIPssuite (click here to the left), we narrowed-in onprice trends of copper stocks using the “alt” GICSbutton – see link.

o Copper Mountain (CUM CN) is expectedto take another leg lower. Downside riskis to $1.50 – Figure 3.

o Antofagasta (ANTO LN) has a nicecounter-trend rally to sell into – Figure 4.

Figure 1: LME 3Mo Copper in USD/lb This Morning Figure 2: Solactive Global Copper Miners Index

Figure 3: Copper Mountain (CUM CN) Share Price Figure 4: Antofagasta PLC (ANTO LN) Dvd Adj Share Price

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

33

Trends & Inflection Points

Page 2 November 27, 2014

Figure 4: Schlumberger (SLB US) Dvd Adj Price Trend Figure 5: Continental Resources (CLR US) Dvd Adj Price Trend

Figure 6: Surge Energy (SGY CN) Dvd Adj Price Trend Figure 7: Cardinal Energy (CJ CN) Dvd Adj Price Trend

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

35

Source: BMO Capital Markets, Bloomberg, Thomson, Markit

Focal Points Investment & Trading Ideas

October 27, 2014 Research Comment Quantitative/Technical Research Website

Mark Steele (416) 359-4641 mark.steele@bmo.com Assoc: Tiberiu Stoichita/Jin Li

Health Care – Universal Strength CLICK HERE for a printer friendly version of this report including research disclosures.

Of all the ten sectors, thereis none that showsuniversal strength bymarket cap, region, andSubIndustry as health care.

Pick most benchmarks, and you will find health care is outperforming – Figure 1. The universality of this strength makes health care our top-ranked sector in terms of relative

strength breadth. All health care subindustries have positive strength readings – Figures 2, 3. In the following three pages, we highlight global health care stocks vs. ACWI, S&P 500 health

care members, and price trends on North American small- and mid-cap health care stocks.

Figure 1: Health Care Sector Performance vs Local Benchmarks (From Our Sector & Industry Report)

Fig2: Global Sector Heat Map (Pg. 3 of Group Selection Report) Fig 3: H. Care RS Heat Map (Pg. 11 of Group Selection Report)

36

Focal Points

Page 2 October 27, 2014

vs. MSCI All Country World Index

54% of Health Care Stocks are outperforming ACWI. We highlight the most consistent outperformers (Trend/Width Ratio greater than 2) against ACWI and the Health Care Sector in Figure 4.

The stocks with the strongest relative strength histories, which are breaking above underperforming trends, are shown in Figure 5. Note: To update these lists in the future, click on the Health Care Link on page 3 of our Group Selection Report, select ACWI, and use the filters at the bottom of the page to segment the universe.

Figure 4: Largest 20 Stocks in Consistent Outperformance Trends vs. ACWI and ACWI Care – See Link for Full List

Figure 5: Stocks With Good Long-Term RS History, Breaking Above Underperforming Trends (Click Here and Sort by LT RS)

37

Focal Points

Page 3 October 27, 2014

vs. S&P 500 (or other benchmarks using our Index Members Link)

The concentration of health care outperformers is high in the S&P 500, where 70% are outperforming the S&P 500 – Figure 6. One quarter of the underperformers are breaking above underperforming trends – Figure 7. Note: To update these lists in the future, click on “Index Members” within our Trends & Inflection Points(TIPs)suite, select the SPX vs SPX (or other index members amongst the twenty one indices found at this link) , click HC to select health care stocks, then use the filters at the bottom of the page to segment the universe.

Figure 6: S&P 500 Health Care Members in Consistent Outperformance Trends vs. S&P 500

Figure 7: S&P 500 Health Care Members Breaking Above Underperforming Trends

38

Focal Points

Page 4 October 27, 2014

North American SMID

The Russell 2000 has spent the last 11 months trending lower at a rate of 2%/year, yet the Russell 2000 Health Care Sector has started to make higher highs and lows, and is trending higher at a rate of 18%/year. Given the flat benchmark, one might as well just look at price trends when looking at North American SMID health care stocks.

o Half of North American Health Care SMID have dividend adjusted price trends moving higher, versus only 40% for the other sectors – Figure 8.

o The stocks with good (top 5 deciles) price history, breaking above downtrends are shown in Figure 9. Note: To update these lists in the future, click on “SMID” within our Trends & Inflection Points (TIPs) suite, select “vs R2k”, click HC to select health care stocks, toggle to price trend then use the filters at the bottom of the page to segment the universe.

Figure 8: Price Uptrends on North American Health Care Stocks $200mm-$5bn That Trade Over $1mm/day

Figure 9: Stocks With Good Long Term History, Breaking Above Downtrends (Click Here and Sort by LT Price)

39

BMO Capital Markets Disclosure Statements

Page 1 January 5, 2015

IMPORTANT DISCLOSURES Analyst's Certification I, Mark Steele, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA (exception: Alex Arfaei). These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Distribution of Ratings (September 30, 2014) Rating

Category

BMO Rating BMOCM US

Universe* BMOCM USIB Clients**

BMOCM USIB Clients***

BMOCM Universe****

BMOCM IB Clients*****

Starmine Universe

Buy Outperform 44.3% 18.0% 60.3% 43.9% 56.5% 56.0% Hold Market Perform 52.5% 9.7% 38.5% 51.6% 42.1% 39.1% Sell Underperform 3.2% 5.3% 1.3% 4.5% 1.4% 4.9%

* Reflects rating distribution of all companies covered by BMO Capital Markets Corp. equity research analysts. ** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as

percentage within ratings category. *** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking

services as percentage of Investment Banking clients. **** Reflects rating distribution of all companies covered by BMO Capital Markets equity research analysts. ***** Reflects rating distribution of all companies from which BMO Capital Markets has received compensation for Investment Banking services as

percentage of Investment Banking clients. Rating and Sector Key (as of April 5, 2013)

We use the following ratings system definitions:

OP = Outperform - Forecast to outperform the analyst’s coverage universe on a total return basis; Mkt = Market Perform - Forecast to perform roughly in line with the analyst’s coverage universe on a total return basis; Und = Underperform - Forecast to underperform the analyst’s coverage universe on a total return basis; (S) = Speculative investment; NR = No rating at this time; and R = Restricted – Dissemination of research is currently restricted.

BMO Capital Markets' seven Top 15 lists guide investors to our best ideas according to different objectives (CDN Large Cap, CDN Small Cap, US Large Cap, US Small Cap, Income, CDN Quant, and US Quant have replaced the Top Pick rating).

Prior BMO Capital Markets Rating System (January 4, 2010 – April 4, 2013)

http://researchglobal.bmocapitalmarkets.com/documents/2013/prior_rating_system.pdf

Other Important Disclosures For Important Disclosures on the stocks discussed in this report, please go to http://researchglobal.bmocapitalmarkets.com/Public/Company_Disclosure_Public.aspx or write to Editorial Department, BMO Capital Markets, 3 Times Square, New York, NY 10036 or Editorial Department, BMO Capital Markets, 1 First Canadian Place, Toronto, Ontario, M5X 1H3. Dissemination of Research BMO Capital Markets Equity Research is available via our website https://research-ca.bmocapitalmarkets.com/Public/Secure/Login.aspx?Return Url=/Member/Home/ResearchHome.aspx. Institutional clients may also receive our research via Thomson Reuters, Bloomberg, FactSet, and Capital IQ. Research reports and other commentary are required to be simultaneously disseminated internally and externally to our clients.

BMO Nesbitt Burns Disclosure Statements

Page 2 January 5, 2015

General Disclaimer “BMO Capital Markets” is a trade name used by the BMO Investment Banking Group, which includes the wholesale arm of Bank of Montreal and its subsidiaries BMO Nesbitt Burns Inc., BMO Capital Markets Limited in the U.K. and BMO Capital Markets Corp. in the U.S. BMO Nesbitt Burns Inc., BMO Capital Markets Limited and BMO Capital Markets Corp are affiliates. Bank of Montreal or its subsidiaries (“BMO Financial Group”) has lending arrangements with, or provide other remunerated services to, many issuers covered by BMO Capital Markets. The opinions, estimates and projections contained in this report are those of BMO Capital Markets as of the date of this report and are subject to change without notice. BMO Capital Markets endeavours to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and complete. However, BMO Capital Markets makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to BMO Capital Markets or its affiliates that is not reflected in this report. The information in this report is not intended to be used as the primary basis of investment decisions, and because of individual client objectives, should not be construed as advice designed to meet the particular investment needs of any investor. This material is for information purposes only and is not an offer to sell or the solicitation of an offer to buy any security. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report on a principal basis. BMO Capital Markets or its affiliates, officers, directors or employees have a long or short position in many of the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. The reader should assume that BMO Capital Markets or its affiliates may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or sell securities of issuers discussed herein.

Additional Matters To Canadian Residents: BMO Nesbitt Burns Inc. furnishes this report to Canadian residents and accepts responsibility for the contents herein subject to the terms set out above. Any Canadian person wishing to effect transactions in any of the securities included in this report should do so through BMO Nesbitt Burns Inc. The following applies if this research was prepared in whole or in part by Andrew Breichmanas, Iain Reid, Tony Robson, David Round, Edward Sterck or Brendan Warn: This research is not prepared subject to Canadian disclosure requirements. This research is prepared by BMO Capital Markets Limited and subject to the regulations of the Financial Conduct Authority (FCA) in the United Kingdom. FCA regulations require that a firm providing research disclose its ownership interest in the issuer that is the subject of the research if it and its affiliates own 5% or more of the equity of the issuer. Canadian regulations require that a firm providing research disclose its ownership interest in the issuer that is the subject of the research if it and its affiliates own 1% or more of the equity of the issuer that is the subject of the research. Therefore BMO Capital Markets Limited will disclose its and its affiliates’ ownership interest in the subject issuer only if such ownership exceeds 5% of the equity of the issuer. To U.S. Residents: BMO Capital Markets Corp. furnishes this report to U.S. residents and accepts responsibility for the contents herein, except to the extent that it refers to securities of Bank of Montreal. Any U.S. person wishing to effect transactions in any security discussed herein should do so through BMO Capital Markets Corp. To U.K. Residents: In the UK this document is published by BMO Capital Markets Limited which is authorised and regulated by the Financial Conduct Authority. The contents hereof are intended solely for the use of, and may only be issued or passed on to, (I) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (II) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together referred to as “relevant persons”). The contents hereof are not intended for the use of and may not be issued or passed on to, retail clients. Unauthorized reproduction, distribution, transmission or publication without the prior written consent of BMO Capital Markets is strictly prohibited. Click here for data vendor disclosures when referenced within a BMO Capital Markets research document.

ADDITIONAL INFORMATION IS AVAILABLE UPON REQUEST BMO Financial Group (NYSE, TSX: BMO) is an integrated financial services provider offering a range of retail banking, wealth management, and investment and corporate banking products. BMO serves Canadian retail clients through BMO Bank of Montreal and BMO Nesbitt Burns. In the United States, personal and commercial banking clients are served by BMO Harris Bank N.A., Member FDIC. Investment and corporate banking services are provided in Canada and the US through BMO Capital Markets.

BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Harris Bank N.A, BMO Ireland Plc, and Bank of Montreal (China) Co. Ltd. and the institutional broker dealer businesses of BMO Capital Markets Corp. (Member SIPC), and BMO Capital Markets GKST Inc. (Member SIPC) in the U.S., BMO Nesbitt Burns Inc. (Member Canadian Investor Protection Fund) in Canada, Europe and Asia, BMO Capital Markets Limited in Europe and Australia and BMO Advisors Private Limited in India.

“Nesbitt Burns” is a registered trademark of BMO Nesbitt Burns Corporation Limited, used under license. “BMO Capital Markets” is a trademark of Bank of Montreal, used under license. "BMO (M-Bar roundel symbol)" is a registered trademark of Bank of Montreal, used under license

® Registered trademark of Bank of Montreal in the United States, Canada and elsewhere. TM Trademark Bank of Montreal

©COPYRIGHT 2014 BMO CAPITAL MARKETS CORP.

Financial GroupA member of BMO