technical review of stocks - the technical analyst review of stocks update –– 31 january 2016...

Technical Review of Stocks

Update –– 31 January 2016

CIO Wealth Management Research Peter Lee, Chief Technical Analyst, [email protected], +1-212-713-8888, ext.01

This report provides technical analysis on stocks that, we believe, are of a wide interest. This list is not a template for the construction of your personal portfolio. You should discuss investment decisions with your Financial Advisor. For more information about this report, see Description and Methodology in the Appendix. We would like to thank Venkat Badri, an employee of Cognizant Group, for his assistance in preparing this research report. Cognizant staff provides research support services to UBS.

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This report has been prepared by UBS Financial Services Inc. (UBS FS). Analyst certification and required disclosuresbegin on page 28. UBS does and seeks to do business with companies covered in its research reports. As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making their investment decision.

Table of Contents Ticker Name Page AAPL APPLE 4 ABBV ABBVIE INC 4 ABT ABBOTT LABORATORIES 5 ACN ACCENTURE 5 AGN ALLERGAN 6 AET AETNA INC 6 AMAT APPLIED MATERIALS INC 7 AMP AMERIPRISE FINANCIAL INC 7 APC ANADARKO PETROLEUM CORP 8 BA BOEING 8 BAC BANK OF AMERICA 9 CL COLGATE-PALMOLIVE CO 9 CMCSA COMCAST CORP 10 CNC CENTENE 10 CSCO CISCO SYSTEMS INC 11 CVS CVS CAREMARK CORP 11 EMC EMC CORP/MA 12 EOG EOG RESOURCES INC. 12 FDX FEDEX 13 GE GENERAL ELECTRIC CO 13 GOOGL ALPHABET INC 14 INTC INTEL CORP 14 IVZ INVESCO 15 JPM JPMORGAN CHASE & CO 15 KHC KRAFT HEINZ COMPANY 16 LLY ELI LILLY 16 LRCX LAM RESEARCH CORP 17 LULU LULULEMON ATHLETICA 17 MDLZ MONDELEZ INTERNATIONAL INC 18 MDT MEDTRONIC INC 18 MSFT MICROSOFT INC 19 NKE NIKE INC 19 PCLN PRICELINE 20 RHT RED HAT 20 SLB SCHLUMBERGER LTD 21 SNDK SANDISK CORP 21 SO SOUTHERN CO 22 TXN TEXAS INSTRUMENTS INC 22 UTX UNITED TECHNOLOGIES CORP 23 VMW VMWARE INC 23 WWAV WHITEWAVE FOODS 24


UBS CIO WM Research 31 January 2016 2

Changes since last report Additions

Name Ticker Eli Lilly LLY WhiteWave Foods WWAV

Deletions

Name Ticker

Technical Rating Changes

Name Ticker Old New

AbbVie Inc. ABBV Bullish Neutral

Abbott Laboratories ABT Bullish Neutral

Aetna Inc. AET Bullish Neutral

Ameriprise Financial, Inc. AMP Neutral Bearish

Boeing Company BA Bullish Neutral

Bank of America Corp. BAC Bullish Neutral

Colgate-Palmolive Company CL Neutral Bullish

Centene Corporation CNC Neutral Bullish

Invesco Ltd. IVZ Bullish Neutral

Kraft Heinz Company KHC Neutral Bullish

Lululemon Athletica Inc LULU Neutral Bullish

Southern Company SO Neutral Bullish

The last update on these stocks was published on 4 December 2015. Going forward, our previously published rating for these stocks should not be relied upon.



Apple Inc (AAPL)

2012 2013 2014 2015 2016

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Price 10-Week Moving Average 30-Week Moving Average

Source: FactSet, UBS CIO WMR as of 28 January 2016 Support levels Resistance levels

First Second Third First Second Third

92-95 82-85 70.5-74 100-102 107-108/111 113/117-120

Technical rating Bullish

Sector Technology

Last Sale Price $94.09

Rationale: A Jul '15 negative outside month triggered a sharp decline of nearly 32% to the Aug '15 low (92). The abil-ity to find support here coupled with an Oct '15 positive outside month led to a technical rally back to the low-120s. However, failure to clear above the low-120s and the onset of a head/shoulder top pattern, 2013 uptrend channel breakdown and a weekly death cross sell signal signals a potential top. This suggests a major test of intermediate-term support at 92-95 or the 50% retracement from 2013-2015 rally, Aug '15 low and extension of the 2014 triangle.

AbbVie Inc (ABBV)

Jan '13 Apr '13 Jul '13 Oct '13 Jan '14 Apr '14 Jul '14 Oct '14 Jan '15 Apr '15 Jul '15 Oct '15 Jan '163030

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49-52 45.45-46.5 41-42 60-61.5 64-65.5 70.76-71.60

Technical rating Neutral

Sector Healthcare


Rationale: The recent break of its uptrend channel at 59.5 (Sep '15) coupled with a negative outside week patterns (7/24/15, 8/21/15 and 1/29/16) and a weekly death cross sell signal confirm a top and forces a technical downgrade to Neutral. After declining 36.5% from its Jul '15 high to a low of 45.45 in Oct '15 a recent oversold rally may lead to another technical rally to the low-60s or its Jan '16 highs, a 38.2% retracement from its Jul-Oct '15 decline and 30-week ma. We suspect a trading range scenario is now likely between the mid-to-high 40s and the low-to-mid 60s.



Abbott Laboratories (ABT)

2012 2013 2014 2015 20162020

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36-37 32.7-33.5 29-31 38.50-41.49 44-45 46.5-47/51.74


Sector Health Care


Rationale: We recommend moving to a Neutral technical stance as a negative outside week on 8/14/15, coupled with a large gap down on 8/24/15 and a weekly death cross sell signal, has led to 24.62% correction from its Jul '15 high (51.74) to its Oct '14 low (39). A deeply oversold condition has triggered a technical rally that appears to have failed near the bottom of its uptrend channels (44-46). Recent 11/13/15, 12/18/15 and 1/29/16 negative outside weeks and the Jan '16 gap down (38.5-41.49) suggest downside to 33.5-37 or the 50-61.8% retracement of 2011-2015 rally.

Accenture PLC (ACN)

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95-97 88.5-91 82.5-83.5 105.5-106.5 109-110 123/132


Sector Technology


Rationale: We remain Bullish on Accenture as it has successfully tested its key support along the bottom of its 5-year uptrend channel as well as its 2-year ascending triangle breakout in the high-80s to low-90s. In addition, the ability to breakout above the top of the channel at 109-110 confirms a key breakout and renders upside targets to 123 and above this to 132. On the other hand, the Dec '15 negative outside month pattern and repeated failure to breakout above its prior Oct '15 all-time high (109.86) may lead to a consolidation near its key initial support at 95-97.



Allergan (AGN)

2012 2013 2014 2015 2016

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270-280 260-262.50 237.5-245 300-303 322-325/340 365-368


Sector Healthcare


Rationale: The 30.2% decline from Jul-Oct '15 has weakened its near-to-intermediate term trend. In the process, the pivotal 2012/2013 uptrend channel at 280-290 gave way under a broad market correction. However, the ability to quickly surge back above its breakdown and a subsequent gap up on 10/29/15 as well as the Oct '15 positive outside month pattern suggest a consolidation. We expect an extensive near-term trading range to now develop between 270-280 and 315-32. Secondary support is available at 260-262.5 and below this to 237.50-245 or the Oct '15 lows.

Aetna Inc (AET)

2012 2013 2014 2015 20162020

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93.51-95.72 89-90 85.62-86.6 110-111/116 119-120 125.47/134.40


Sector Healthcare


Rationale: The healthcare sector including AET has also come under selling as AET has declined 30.42% from its rec-ord high of 134.40 (Jun '15). A gap down on 7/6/15 first warned of a correction. The selling has accelerated duringAug '15 timeframe, falling to a low of 93.51. Negative outside week patterns on 8/21/15, 9/25/15, 12/3/15 and on 1/29/16 as well as a negative outside month on Jan '16 warn of further selling. We recommend taking a Neutral tech-nical stance over the medium term as next key support below 98.5 resides along the low-to-mid 90s (93.51-95.72).



Applied Materials Inc (AMAT)

2012 2013 2014 2015 201688

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15.85 14.25 13.5-14.0 18 +/- 0.2/19.4 20.55-21.68 22.71-23.09


Sector Technology


Rationale: Failure to clear above key resistance near the 38.2% retracement from 2000-2008 (26.40) and the Nov 2003 highs has led to the recent 44.6% correction from the Dec '14 high. In the process, a number of key supports including the 2013 uptrend near 22-22.5 have been breached. The Mar '15 negative outside month and a large gap down in Apr '15 warn of distribution. Still, a 32% rally from 14.25 levels or the Aug '15 low found resistance near 50% retracement from the Dec '14-Aug '15 decline (19.98). Despite -10.7% decline YTD, 1/22/15 positive outside week hints of a recovery.

Ameriprise Financial Inc (AMP)

2012 2013 2014 2015 2016

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81.4 73-75 60-62 95-97/100-102 110-115 120-122

Technical rating Bearish

Sector Financials


Rationale: Repeated failures to clear the top of its 2009 uptrend channel (high-130s), coupled with a negative outside week on 12/12/14, warn of a top. A weekly death cross sell signal, head/shoulders top breakdown, and violation of the Aug '15 low (95.52) confirm a major trend reversal and hence our defensive Bearish technical outlook. More recently, a negative outside week on 12/4/15 and weak relative strength (vs SPX) suggest risks down to 81.4 (Jan '16 low) and below this to 73-75 (2008 uptrend and 61.8% retracement from 2011-2015 rally). Key supply is 95.5-97 and 100-102.



Anadarko Petroleum Corp (APC)

2012 2013 2014 2015 2016

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32-32.50/30 28.16 24.57 42.90-44 47-48/51.74 60 +/- 2


Sector Energy


Rationale: We maintain our technical Bearish rating on this Energy name. A 2-year head-and-shoulders top break-down below 69-70, the 2008 uptrend breakdown at 66, and the breakdown below 56.42-58.10 (2011/2012/2015 lows) confirm a top. Despite a -23.3% decline year-to-date, we remain negative as continued relative weakness versus S&P 500 still paints a weak technical picture. That said, the stock currently appears extremely oversold and we do not rule out oversold rallies. Key support now lies at 28.16 or the Jan '16 low. The Jan '16 gap down is initial supply.

Boeing (BA)

2012 2013 2014 2015 2016

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113-115 107.83/103.5 90-90.5 120.11-124.50 128.2/138+/-2 145/160


Sector Industrials


Rationale: We recommend moving to a Neutral technical outlook due to recent breakdowns. Earlier, a surge above 107.83 in 2013 confirms a major breakout and suggests upside to 187, longer-term. Nonetheless, the Nov '14-Feb '15 rally stalled near 159-160 and an ensuing negative outside week (7/24/15) led to a decline to 113-115 (50% retrace-ment from 2012-2015 rally and the 2014 lows). The above created a head/shoulders top pattern. Gap downs (1/4, 1/6, 1/7 and 1/27 and 1/29/16) and negative outside week warns of another key test of support at 113-115.



Bank of America Corp (BAC)

2012 2013 2014 2015 201644

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12.50-13 11.70/10.10 8.12 14.50-15 16.25-16.75 18-18.48


Sector Financials


Rationale: We recommend a Neutral technical stance on BAC. After rallying sharply from its 2011 low (4.92), this im-portant financial name has transitioned into a 2-year consolidation phase between 14.5-15 and 18-18.48. Despite the Oct '15 positive outside month pattern, the stock failed to follow through with the breakout. More recently, a sell-off in Jan '16 led to a breakdown below the bottom of its 2013 trading channel (14.5-15). In addition, deteriorating rela-tive strength of the stock (vs SPX) and weakness in Financial sector now suggest a trading range (12.5-13/14.5-15).

Colgate Palmolive Co (CL)

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60-62 54.5-55.5 49.5-50.84 69.5-71.5 74-75 77.5-78.5


Sector Cons. Staples


Rationale: This consumer staples stock also succumbed to selling pressure in Aug '15 by violating the bottom of its 2009/2011 uptrend channel at 59-60 and 66-67. While the longer-term trend remains favorable, the recent recovery is now headed for a major test of formidable resistance residing along the high-60s to low-70s, or the extension of the 2013 uptrend channel and the 2011 uptrend. Despite of the sideways trading range between the low-60s and low-70s, the defensive nature of the stock and 1/22/16 positive outside week warrants a technical upgrade to Bullish.



Comcast Corp. Cl A (CMCSA)

2012 2013 2014 2015 2016

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52.34 49-50.01 47.74/44 58-60/64.99 68-69 72-73


Sector Cons. Disc.


Rationale: We remain cautiously optimistic on CMCSA. On an intermediate-term basis, the recent surge above 59-60 or above the 10- /30- wk ma and extension of the 2012 uptrend channel was short lived. Despite the relative outper-formance of the stock (vs SPX), the broader market weakness set the tone for a three month downtrend that found support near our initial support at 50-52 or the 2014/2015 lows. A convincing breakdown below 50 could open the doors for further sell-off. To the upside, a move above 10- /30- wk ma is required for the resumption of primary trend.

Centene (CNC)

2012 2013 2014 2015 2016

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55 +/-1 50-51 45-47 64-65/68.42 73.5-75.5 83


Sector Healthcare


Rationale: We recommend moving back to a Bullish technical outlook on this defensive Healthcare name. A 38.64% decline from Jul '15 high (83) led to a test of its key support along the low-50s, coinciding with the top of the 2011/12 uptrend channels. The ability of the stock to bounce back from low-50s led to a gradual recovery exhibiting a higher highs and higher lows pattern. Although a recent negative outside week (1/8/16) appeared the defensive nature of the stock, attractive risk-reward profile coupled with positive outside weeks on 12/18/15 and 1/22/16 merit an upgrade to Bullish.



Cisco Systems Inc (CSCO)

2012 2013 2014 2015 20161212

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21.25-22.47 20-20.22 19.31 24.46 26.66-27.14 29.49-30.31


Sector Technology


Rationale: We maintain a cautiously optimistic stance on CSCO as a rare fan formation breakout via 3 downtrends in late-2011, early- and mid- 2013 confirmed a major trend reversal. However, the 3/6/15 negative outside week and the Aug '15 negative outside month have slowed the recovery. In addition, a breakdown below the mid-20s or the 2013/2013 symmetrical triangle warns of a major test of support in the low-20s. A move below our initial support at 21.25-22.47 can trigger a decline towards 20-20.22 or the Apr/Dec '13 lows and the 2011 uptrend. Key supply is 25-26.

CVS Caremark Corp. (CVS)

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90.10 81-83 77.40 100 +/- 1 105-106 113.7/119-120




Rationale: A breakout above the top of the 2012 channel at 88-89 and a gap up on 1/8/15 propelled CVS to record highs. After making a high of 113.65 in Aug '15, the trend suddenly reversed, falling 28.4% in a series of multiple gap downs in Aug '15. However, the selling soon stabilized along the low-80s, prompting the current declining channel between low-80s and high-90s. While the defensive nature of the stock bodes well for investors, a death cross signal, 10/30/15 negative outside week and violation of its 2012/13 uptrend warns of further consolidation, medium-term.



EMC Corp (EMC)

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22.5-23 21.25-21.45 19.84-19.99 25.25-25.75 26.40-27.40 28.77/30.92


Sector Technology


Rationale: A pending deal and related news flow can influence this stock over the near-to-medium term. The recent rally from the Sep '15 low (22.99) has encountered key resistance near the extension of the 2013 uptrend channel along 28, as well as a potential left/right shoulder (28-29) to a 2-year head/shoulders top. Key neckline support is at 22.5-23 or the 2014/2015 lows. Pending the outcome of the deal, a trading range is now likely over the near-to-medium term between 22.5-23 on the downside and 28-29 on the upside; hence, our Neutral technical outlook.

EOG Resources (EOG)

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61-62 56-57.15 53-54 72-73/77-81 87.5-89.5 91-93.5/97-98


Sector Energy


Rationale: The weekly death cross sell signal in mid-2014 and again in 1H15, a violation of the 2012 uptrend (97-98), a negative outside month in May '15, a monthly death cross sell signal in Sep '15, and the onset of a large 2-year head-and-shoulders top breakdown below neckline support (85-87) confirm a major top. Nonetheless, an oversold condition, coupled with 1/22/16 positive outside week pattern now suggest a technical oversold rally to initial supply at 72-73 and then to 77-81 or 30-wk ma and prior breakdown. Key support is at 56-57.15 (Apr '13 and Jan '16 lows).



FEDEX Corp. (FDX)

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119.71-121.2 108 +/- 2 97.54-100 139-143 148-153 164.5/170-172


Sector Industrials


Rationale: Despite the selling over the past few months we maintain a cautiously optimistic bullish outlook on this freight and logistics company as long as it retains its multi-year breakout above 121.2 (late-2013). Nonetheless, the recent breakdowns of near-to-medium term trend lines and key moving averages warn that the 444% rally from the 2009 low may be maturing. The recent sharp 35.36% decline from Jun '15 high (185.19) to Jan '16 low (119.71) has achieved its downside target and a near-term consolidation is now likely between 119.71-121.2 and 139-143. 15 low and

General Electric Co (GE)

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27.48 25.49-26.22 23.5-24 31.5/32.5-33.5 37.75-38.5 39.5/42.08


Sector Industrials


Rationale: The 2000 downtrend breakout above 26.5 in Nov ‘13 (not shown), the gap up breakout in 4/10/15 (25.83-27), and the surge above the 61.8% retracement (28.19) from the 2007-2009 decline, are technically significant as they confirm a longer-term recovery. Although the broad market selloff in Aug '15 has also impacted GE, resulting in a 26.4% decline to a low of 19.37, we are encouraged by the 10/2/15 positive outside week pattern and the subsequent gap up. However, more recently, the 12/18/15 negative outside week hints of a consolidation to the mid-to-high 20s.



Alphabet Inc (GOOGL)

2012 2013 2014 2015 2016200200

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687.78 670/654 617.8/593.09 800-810 840-850 875/905-910


Sector Technology


Rationale: The 2-year downtrend channel breakout in Jul '15 is technically significant as this signals the re-emergence of a leadership technology name. An overbought condition soon developed that led to a consolidation (see red circle) between high-500s and low-700s from mid-Jul to mid-Oct '15. More recently, another gap up on 10/23/15 extended the rally. A move above 752.50 or the Oct '15 high led to a new all-time high of 798.69 by Dec '15. Soon after, a gap down in Jan '16 and broader weakness in technology names led to a consolidation towards the Oct '15 gap up.

Intel Corp (INTC)

Source: FactSet, UBS CIO WMR as of 28 January 2016

Support levels Resistance levels


27-28 26-26.40 24.87 30.50-31.80 34-34.50/35.59 37.5-38.0


Sector Technology


Rationale: We were encouraged by the 12-year inverse head-and-shoulders breakout above 30 (not shown) in Jun '14. However, a 28.43% decline from the May '15 high of 34.75 warned of a false breakout. The stock’s ability to find support near the mid-20s prevented a deeper setback, prompting another sharp rally of 41% from its Aug '15 lows (24.87). While the 11/20/15 positive outside week is constructive, a failure to break its all-time high (37.9) led to a cor-rection to its prior breakout in the high-20s. A trading range is now likely between 28-29 and 34-35.5.



Invesco (IVZ)




26.50-27.50 23-25 21-21.25/20.49 30 +/- 0.20 31.89-32.18/35 38 +/- 1.50


Sector Financials


Rationale: We recommend moving to a Neutral technical outlook on this Financial name. Earlier, a move above 32.25 or the 2007 highs in early 2013 completed a multi-year technical base breakout. However, the Dec '14 negative out-side month, the Jul '15 death cross signal, and the Aug '15 broad market weakness led to a sharp decline to the low-30s. Despite the Oct '15 positive outside month pattern, a failure to move above mid-30s followed by the Dec '15 neg-ative outside month pattern and the Jan '16 breakdown below prior breakout warns of a choppy trading range.

JPMorgan Chase & Co (JPM)




53-54 48-50.07 44-44.50 60-61/64-66 68-70 83-85/90-92


Sector Financials


Rationale: We retain a Bullish technical view on JPM. A multi-year base breakout above 53.29 in mid-2013 transi-tioned the stock into a new 2+ year uptrend channel. A rally to the top of the channel near the low-70s led to an over-bought condition which in turn led to recent 29.1% sell-off from the Jul '15 high (70.61) that traded down to its Aug '15 low (50.07). Despite, a slight break of its prior major breakout a strong surge above this pivotal level accompanied by the Oct '15 positive outside month signal a consolidation between the low-50s and the mid-60s, medium term.



Kraft Heinz Company (KHC)




68-70 65 60-61.42 80-81.20 85.14 91.32




Rationale: We recommend upgrading to Bullish technical outlook on KHC. A 35% gap up on 3/25/15 after Heinz and Kraft Foods announced a merger to form the Kraft Heinz Co. set the tone for the Bulls, as evidenced by a bullish flag pattern. However, failing to follow through with this bullish pattern, a subsequent large gap down (-17.27%) on 7/6/15 warned of a correction. A gradual recovery from Aug '15 lows led to a consolidation between high-60s and low-80s. More recently, 1/22/16 positive outside week and the Jan '16 positive outside month merit a favourable view.

Eli Lilly (LLY)




75.16 68-68.50 60 +/- 2 82-85 88-88.50 92.85


Sector Healthcare


Rationale: We initiate Eli Lilly with a technical Bullish rating. A convincing move above low-40 in 2012 negated a dec-ade long downtrend starting from 2000 highs. Subsequently a breakout above low-60s in early 2014 exhibited a suc-cessful move out of multi-year accumulation pattern both in the absolute and relative charts (vs SPX). Over the last 2+ years the stock is witnessing a gradual rise within a rising channel between high-70s and low-90s. While we make a note of near-term weakness, the risk-reward profile remains attractive. Key support lies near 68.31 (Mar '15 low).



Lam Research Corp (LRCX)




65-66 60.82-62.85 55-56 74-76 81-82/85.7-88 95/100


Sector Technology


Rationale: We remain optimistic on LRCX primarily due its large technical base breakout above the high-50s to low-60s. This major breakout triggered a strong rally to the mid-80s during Dec '14/Feb/Mar '15 before an overbought condition developed. The stock has been consolidating its gains between the low-60s and the low-80s for the past year. Despite this near-term trading range the ability to maintain its primary uptrends from its respective 1998/2008 lows, an attractive risk-reward profile and positive relative strength charts (vs SPX) substantiate our favourable outlook.

Lululemon Athletica (LULU)




52.50-53 45-47 39-39.50/36.26 60-62 67-70 77.75/82.50


Sector Cons. Disc.


Rationale: We recommend upgrading to a Bullish technical outlook. A 3702% rally from its 2009 lows (2.17) to the Jun '13 all-time high (82.50) has led to an overbought condition. The consolidation that followed led to a sharp 56% decline from the Jun '13 high to a low of 36.26 (Jun '14). Soon after, a positive outside month on Sep '14 and Jun/Aug '15 led to a recovery. Although the stock consolidated yet again after the Sep '15 negative outside month pattern, the recent 11/20/15 and 1/15/16 positive outside week and improving relative strength (SPX) suggest another rally.



Mondelez International Inc (MDLZ)



38-39 36.50 33-34 44.45-45.45 47.42-48.58 53-55/59




Rationale: We remain cautiously optimistic on MDLZ. A key breakout of an 11-year technical base in Mar ‘13 above 28.76 supports our Bullish outlook. The stock has witnessed a steady rise over the past few years before finally break-ing out, and witnessed a high level consolidation between Jul '14 and May '15. The mid-May '15 breakout above 39.25-39.5 reinforced the primary uptrend. While the Aug '15 negative outside month, the 12/4/15 negative outside week and the Jan '16 gap downs may signal another consolidation phase similar to the 2014 to early 2015 timeframe.

Medtronic Inc. (MDT)




68-70/63.98 60-62 55-56/53.33 79-80 85-87/91 95/100


Sector HealthCare


Rationale: This Healthcare name confirmed a major breakout above its 2000/2006 highs (60-62) in Jan/Apr ‘14. In addition, positive outside months on Aug '14, Oct '14, and May/Jul '15 and the stock’s relative outperformance versus SPX favor higher prices over the intermediate-to-longer term. That said the negative outside month pattern during Aug '15 has led to a wide trading range between the mid-to-high 50s and the mid-to-high 70s. A convincing surge above 79-80 would help to confirm the resumption of the primary uptrend and renders upside targets to mid-80s/mid-90s.



Microsoft Inc. (MSFT)




49.10 45-46 39.72 56.85/59.97 65-66 70-71/77


Sector Technology


Rationale: A breakout of a large 13+ year head-and-shoulders bottom pattern above key neckline resistance at 37-38 (in 2013) confirms a Bullish technical outlook. The 21-point technical base breakout renders upside targets to as high as 59-60, longer-term. Despite a large gap up in Apr '15 and a subsequent positive outside month, the stock consoli-dated between the low-40s and the high-40s. That said a positive outside week on 10/2/15, a subsequent large gap up breakout on 10/23/15 and continued relative outperformance (vs SPX) of the stock reaffirm a bullish outlook.

Nike Inc. Cl B (NKE)




56-57 54/50 45.35-47.25 64 68.20-70 75/80


Sector C. Discretionary


Rationale: We maintain a technical Bullish view based on: 1) the primary trend starting from 2000 lows remains up; 2) a successful breakout above its 2009 uptrend channel and 3) continued relative outperformance against SPX. While an overbought condition led to a 19.7% decline in Aug '15, a solid gap up on 9/25/15 and again on 11/20/15 offset the concerns and led to the extension of its uptrend. The recent consolidation between the mid-50s and the high-60s may have alleviated an overbought condition and the 1/22/16 positive outside week may signal the start of the next rally.



Priceline (PCLN)




990-1000 930/875 805/745-750 1105-1125 1200 +/- 25 1290/1345


Sector Consumer Disc.


Rationale: During the dot.com bubble, the stock lost 99% of its value from 1999 high of 990 to as low as 6.30 by 2002. Gradual gains from the 2002 lows took over a decade to recover prior losses. By Aug/Sep '13, the stock exhibit-ed a successful breakout of the 15-year accumulation pattern above 990 and eventually went on to make a high of 1476.52 by Nov '15. A gap down on 11/9/15 and a negative outside month triggered a pullback to its prior major breakout and major support at 990-1000.The ability to find support here can lead to a rally back to 1100-1125/1200.

Red Hat (RHT)




66-67 62.43-65 57.87/52.53 72-73 77-79 84-85


Sector Technology


Rationale: We retain a Bullish outlook on this software and services name as long as it retain key support along the low-to-mid 60s or near its 2015 breakout and its 2008 uptrend (not shown). A gradual recovery from 2001 lows led the stock to retrace over 55% of the 1999-2001 declines. The bullish uptrend starting from 2001 lows, a breakout of 2011-12 channel breakout, Dec '15 positive outside month and favourable relative strength (versus SPX) support our bullish call. Nonetheless, the -18.6% decline this month signals a consolidation between the mid-60s and the low-90s.



Schlumberger Ltd (SLB)




66-67 59-60 54-55 74-75 81-83/87-89 93-95/100.54


Sector Energy


Rationale: The 5-year triangle pattern breakout (mid-90s) led to a major peak at 118.76 (Jul '14). The start of a major sell off in WTI Crude prices ignited a 49.81% decline from its Jul '14 highs. The 1-plus year sell-off soon led to a deeply oversold condition. A positive outside month on Oct '15 and the ability to find key support near the bottom of its fall-ing wedge pattern at 69.6 in Jan '16 has promptly led to a strong technical rally that is now approaching key resistanceat 74-75 (top of wedge and 30-wk ma) and above this to 81-83 (38.2% retracement from 2014-2016 decline) .

SanDisk Corp (SNDK)




65-65.50 59-61 51-52.5/48.25 75 +/- 2 81-83/87-87.5 92-94/100-102


Sector Technology


Rationale: A 59.29% decline from the July '14 top (108.77) and a falling wedge pattern breakout signal a major bot-tom. In addition, a positive outside week on 10/02/15 and a subsequent gap up on 10/14/15 further solidified a bot-tom and the start of a recovery. The stock's volume began to expand soon afterwards and this has led to gains of 78% from its Aug '15 low (44.28). A consolidation is now needed to first alleviate an overbought condition and second to allow for the development of another technical base to sustain the next rally. Key initial support is the low-to-mid 60s.



Southern Co. (SO)

2012 2013 2014 2015 2016

3535

4040

4545

5050

5555




46 43.38-44 41.40-41.81 48.50-49 53.16 56-58


Sector Utilities


Rationale: We recommend upgrading to a Bullish technical outlook. The recent broad market weakness has helped many defensive stocks including SO outperform SPX. Positive outside week patterns on 11/28/14 and 12/19/14 led to a breakout above key resistance at 48.74. However, failure to extend this rally and a sharp correction during Jan-Jun '15 has created a head/shoulder top pattern. Nonetheless, 6/19/15 positive outside week and a subsequent golden cross buy signal and more recently, 1/15/16 positive outside week accompanied by a surge above 48.74 signals a breakout.

Texas Instruments Incorporated (TXN)




46.73 43.49/40-41.50 37-38 55-56 60-61/65-67 70-72/79-79.50


Sector Technology


Rationale: Despite the near-term consolidation of the stock in sympathy with the broader market weakness, we retain a Bullish technical rating on TXN. The 2013 surge above 39.63 or its 2007 highs and the neckline resistance of a large 2002 head/shoulders bottom pattern confirmed a major breakout. But an overbought condition developed near the low-60s and a death cross signal led to a 27.5% decline from the Mar '15 high. Although, the Dec '15 negative out-side month led to a consolidation, strong relative strength (vs SPX) suggests a retest of the Mar '15 highs (59.99).



United Technologies Corp (UTX)




83-84/80 74-75 70-71 94-95/100-101 104.95-109.51 120.33/124.45


Sector Industrials


Rationale: We retain a Neutral technical stance on UTX. After recording a high of 124.45 in Feb '15, the stock en-countered significant resistance near the late-1990s trend line as well as the top of the 2008/2009 uptrend channel. A weekly death cross sell signal, coupled with a large gap down on 7/21/15, further weakened both the absolute and relative charts (vs SPX). While the moving averages exhibit divergence and the relative outlook continues to deteriorate further, the risk-reward is even at current levels and hence our Neutral view. Initial support is 83.39 or the Jan '16 low.

VMware Inc (VMW)




44/41 35-36 28-30 50+/-2 /55-57 62.50-63/68.36 74.22-77.20


Sector Technology

Last Sale Price $45

Rationale: Our Bearish technical view on VMW is based on the following negative developments: a fan formation breakdown, a complex head-and-shoulders top pattern, and increased volatility via downside gaps (Mar/Apr/Oct ‘14 and Jan/Aug/Oct '15). More recently, negative outside week patterns on 8/7/15, 8/21/15 and 10/9/15, the subsequent negative outside month patterns in Aug/Oct '15, multiple gap downs in Oct '15 (10/12/15 and 10/21/15) and in Jan '16 (1/27/16), and a breakdown below the Jun/Jul '13 lows in mid-60s paint a weak technical trend.



WhiteWave Foods (WWAV)




32.05-33.16 29.42 25.82-26.35 40.14/43.79 47.41 52.53




Rationale: We initiate the Food Beverage name with a technical Neutral rating. Despite the limited trading history (since the Oct 2012), the primary trend remains up. A solid 269% rally from Nov 2012 low (14.22) to Aug 2015 high (52.53) has created an extremely overbought condition. Subsequently, a 33% decline in Aug '15 and a negative out-side month pattern followed by a death cross sell signal led to a medium-term downtrend channel between the low-30s and the high-30s. Nonetheless, the 1/22/16 positive outside week now hints of a recovery over the near-term.



Appendix Description and Methodology This report provides technical analysis on a dynamic list of stocks that, we believe, are of a wide interest. Please note that technical views are highly variable and will change with market conditions. Accordingly, these ratings are only valid as of the publication date. Because CIO WMR equity sector analysts and WMR technical analysts employ different analytical methodologies, technical recommendations are, at times, contradictory to fundamental recommendations for the same security. For the latest company ratings by WMR sector analysts, please refer to the most recent equity sector research reports, located in the Equity Section on the Online Services Research website. For more background on the content of this report, please see Technical Analysis Research Primer, 18 February 2010.



Appendix Term / Abbreviation Description / Definition

% +or- Moving

Average (DMA)

The percentage above or below the moving average (see Moving Average) is used to help measure an overbought or over-sold condition and is a component of risk management. It is calculated by taking the difference between the group price and its 30-week moving average (see below), and then dividing by the 30-week moving average times 100.

30-Week Moving Average

Also known as the 30-week line or 150-day line), this is one of the most popular and respected moving average indicators (see Moving Average) in technical circles. It is calculated by totaling the latest 30 weekly (usually Friday closing) prices and dividing by 30 to arrive at the average. Each week, the most recent week’s figure is added to the total, and the price level from 30 weeks ago is subtracted – hence the term “moving.” Please note that a breakout above or breakdown below this line does not, in and of itself, constitute a buy or sell signal.

Adjusted Relative Strength (ARS)

Number gives a 50% weighting to the 1-month relative strength, 30% to the 3-month, and 20% to the 6-month numbers to arrive at a single weighted number.

Base A chart pattern marking a period of accumulation following a downtrend. The larger the base, the greater the upside poten-tial following its completion. A base can take many forms.

Beta A measure of volatility of a security as it relates to the market as a whole. Beta is often calculated using regression analysis. A beta is basically the tendency of a security’s returns to respond to swings in the market. A beta of 1 indicates that the se-curity’s price will move with the market. A beta of less than 1 means the security will be less volatile than the market. A beta of greater than 1 implies that the security’s price will be more volatile than the market.

Blow off stage to a major rally

This is often the last stage of a speculative bubble to a major rally. The blow off phase tends to be steep, but short-lived that often affords little opportunity for investors/traders to exit their positions. As price of a security or an asset advanced to an unsustainable level via a parabolic uptrend this give rise to the bursting of the speculative bubble resulting a quick and dra-matic decline as investors/traders try to exit the market/security at the same time.

Breakdown A technical term indicating a downside resolution of a chart pattern. Its significance is determined by the same factors gov-erning a breakout.

Breakout A technical term indicating an upside resolution of a chart pattern. Breakouts can take many forms, and their degree of im-portance is determined by the significance of the chart pattern which preceded it.

Broadening Top For-mation

The Broadening top is a rare technical formation that resembles an inverted triangle pattern. It is formed by price swings that are increasingly widening and expanding volume. The most common of these broadening top patterns are the three ascending peaks and two descending troughs. The combination of wide price swings and increasing volume often convey an increasingly volatile and emotional market that's basically out of control. This pattern is often associated with market tops rather than market bottoms. The confirmation of the Broadening top occurs when the price violates the second of these two troughs.

Channel

A chart pattern comprised of two parallel trend lines, which form a trading band. Channels take the form of uptrend, down-trend and horizontal.

Death Cross The opposite of a golden cross, this is a crossover on the chart resulting from a security’s shorter-term moving average falling below its longer-term moving average. Technicians often see this as a bearish technical sign indicating the market has turned negative on the security.

Downtrend Line

A trend line connecting successively lower peaks for a stock (or market). Its technical significance is determined by the same factors governing an uptrend line.

Fan reversal pattern The fan formation is a technical pattern that is based on the use of multiple trend lines to denote a major trend reversal. The fan pattern gets its name as it basically resembles a “fan”. It should have a minimum of three trend lines (uptrends or down-trends). The break out/break down of the third downtrend/uptrend often completes the fan pattern and signals the start of a major trend reversal. The starting point of these trend lines should come from a significant peak or a significant trough.

Fibonacci Retrace-ment Level

A technical analysis term used to describe potential areas of support (price stops declining) or resistance (price stops rising) on the charts. After a strong rally or decline there is a tendency for a security to retrace a certain portion of its prior move (up or down). Fibonacci retracements use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before continuing in the original direction. These levels are computed by taking the two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.

FSR Forecast Stock Return is defined as expected percentage price appreciation plus gross dividend yield over the next 12 months.

Gap

An open space in a chart created when a stock (or market) opens either higher than its highest level attained during the prior session (referred to as a gap up or an upside chart gap) or lower than its lowest level reached during the prior day (called a gap down or a downside chart gap). Some gaps are caused by events and should be ignored: ex-dividend gaps, new share issues, and expiration of futures contracts.



Appendix Term / Abbreviation Description / Definition

Golden Cross A crossover on the chart that involves a security’s shorter-term moving average (such as the 50-day moving average) crossing above its longer-term moving average (such as the 150-day or 200-day moving average). Technicians often interpret this crossing of two moving averages as a bullish technical sign that suggests the market has turned in favour of the security.

Head-and-Shoulders Pattern

This technical formation is one of the best known of the reversal patterns. There are two types of head-and-shoulders pat-terns that often appear on the charts – H/S top and H/S bottom. Both of these patterns often denote the process of a reversal either from a bullish or bearish trend. Head-and-shoulders formation often is comprised of a left shoulder, a head, and a right shoulder, and a line drawn across its shoulders defines its neckline. The breaking of the neckline to the upside confirms a head-and-shoulders bottom breakout, which signals the start of a bullish reversal favouring higher prices. The violation of neckline to the downside validates a head-and-shoulders top, reaffirming a bearish reversal of lower prices.

Internal Trend Line A single trend line connecting at least several high and low points for a stock (or market) over time.

Linear Regression Band

A common statistical technique often used by investors/traders to better forecast values by utilizing the least squares fit method to plot a trend line. A linear regression band consists of upper and lower bands. These bands are calculated by computing the number of standard deviations above or below of the regression line.

Moving Average (m.a.)

This is a technical indicator frequently used in technical analysis to show the average value of a security’s price over a set period of time. This tool is designed to smooth out a stock’s (or market’s) shorter-term fluctuations to provide a better picture of an underlying trend. Moving averages generally are used to measure momentum and define areas of possible support and resistance. Moving averages can be helpful as they emphasize the direction of the dominant or prevailing trend and also tend to smooth out price and volume fluctuations, or “noise,” giving the trader or investor a clearer picture of the security in ques-tion. Many moving averages exist.

MRA Market Return Assumption is defined as the one-year local market interest rate plus 5% (a proxy for the equity risk premium and not a forecast).

Neckline Sup-port/Resistance

This is a trend line that is drawn across the bottoms or tops of the left shoulder, the head and the right shoulder of a poten-tial head-and-shoulders bottom or top pattern. When prices break through this neckline support level and continue falling after forming the right shoulder, it confirms a head-and-shoulders top formation. Conversely, neckline resistance is a trend line drawn across the tops of the left shoulder, the head and the right shoulder. When prices break above this neckline re-sistance level and keep on rising, it typically completes the head-and-shoulders bottom pattern.

Overbought A technical condition in which the price of a security has risen to such a degree that the price becomes overvalued or has reached the upper band of its trading range resulting in a potential pullback in price.

Oversold Opposite of Overbought. A technical condition that occurs when the price of a security has fallen to such a degree that the price becomes undervalued or has reached the lower band of its trading range prompting a potential rally.

Positive/Negative “Outside” Day

When one day’s range (high and low) exceeds the prior day’s range, and the stock (or market) in question closes near its daily peak, this is referred to as a positive “outside” day. A negative “outside” day would be recorded if the stock (or index) finished near its daily low after having a wider range than the prior session. The same rule can be applied on a weekly and monthly basis as well.

Relative Strength

Relative strength is a performance comparison between a sector, group, or stock and the S&P 500 Index over a specified time frame. Our time frame is often a one-, three-, and six-month basis but does vary according to investment orientation.

RRD Rating/Return Divergence is automatically appended to the rating when stock price movement has caused the prevailing rating to differ from that which would be assigned according to the rating system and will be removed when there is no longer a divergence, either through market movement or analyst intervention.

Support An area where increased buying interest is likely to develop during a decline. These points, which can take several forms (minor, major, etc.), often provide downside protection for an issue in a primary uptrend, but only temporary relief to an issue in a primary uptrend, during which time many support levels are often broken.

Top A chart pattern marking a period of distribution following an uptrend. The larger the top, the greater the downside potential following its completion. It, too, can take many forms.

Triangle Patterns There are three different types of Triangle patterns – Symmetrical, Descending and Ascending. Symmetrical Triangle is con-sidered to be a continuation pattern that often signals a period of consolidation in a trend followed by a resumption of the prior trend. It is formed by the convergence of a descending trend and an ascending trend. An Ascending Triangle is a bullish pattern, which is denoted by two trend lines – a flat trend line and an ascending uptrend line. A Descending Triangle is a bearish pattern. It is the opposite of the Ascending Triangle in that there is a flat trend line and a downward sloping down-trend line.



Appendix

Statement of Risk

Statement of RiskEquities - Stock market returns are difficult to forecast because of fluctuations in the economy, investor psychology,geopolitical conditions and other important variables.

Required Disclosures

Analyst Certification

Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that withrespect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflecthis or her personal views about those securities or issuers; and (2) no part of his or her compensation was, is, or will be,directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the researchreport.

CIO Wealth Management Research equity selection systemEquity sector strategists provide three equity selections: Most Preferred (MP), Least Preferred (LP) and Bellwetherdesignation.

Rating definitionsMost Preferred*: The equity sector strategist expects the stock to outperform the relevant benchmark in the next 12months.Least Preferred*: The equity sector strategist expects the stock to underperform the relevant benchmark in the next12 months.Bellwether: Stocks that are of high importance or relevance to the sector and which the equity sector strategist expectsthe stock to perform broadly in line with the sector benchmark in the next 12 months.*A stock cannot be selected as Most Preferred if UBS Investment Research rates it a Sell, while a UBS Investment ResearchBuy rated stock cannot be selected as Least Preferred.

Rating definitionsMost Preferred*: The equity sector strategist expects the stock to outperform the relevant benchmark in the next 12months.Least Preferred*: The equity sector strategist expects the stock to underperform the relevant benchmark in the next12 months.Bellwether: Stocks that are of high importance or relevance to the sector and which the equity sector strategist expectsthe stock to perform broadly in line with the sector benchmark in the next 12 months.*A stock cannot be selected as Most Preferred if UBS Investment Research rates it a Sell, while a UBS Investment ResearchBuy rated stock cannot be selected as Least Preferred.

Restricted: Issuing of research on a company by CIO WMR can be restricted due to legal, regulatory, contractual or bestbusiness practice obligations which are normally caused by UBS Investment Bank’s involvement in an investment bankingtransaction in regard to the concerned company.

Technical Research Rating Definitions

Rating Corresponding Rating Category Definition and criteriaBullish Buy Well-defined, reliable uptrend, an increase in the rate of change

(or strong momentum) and confirming technical indicators.Neutral Hold Trading range trend, a flat rate of change and confirming

technical indicators.Bearish Sell Negative or weakened trend, momentum and confirming

technical indicators.N/A Not enough historical data to make an evaluation.

Equity selection: An assessment relative to a benchmark



Appendix

Equity selections in Equity Preferences lists (EPLs) are relative assessments versus a sector/industry, country/regional orthematic benchmark. The chosen benchmark is disclosed on the front page of each EPL.Stocks can be selected for several EPLs. To keep consistency, a stock can only be selected as either Most Preferred or LeastPreferred, but not both simultaneously. As benchmarks differ between lists, stocks need not be included on every list towhich they could theoretically be added.

For a complete set of required disclosures relating to the companies that are the subject of this report, please mail arequest to UBS CIO Wealth Management Research Business Management, 1285 Avenue of the Americas, 20th Floor,Avenue of the Americas, New York, NY 10019.

UBS Investment Research: Global Equity Rating DefinitionsFor information on the ways in which UBS manages conflicts and maintains independence of its research product;historical performance information; and certain additional disclosures concerning UBS research recommendations, pleasevisit www.ubs.com/disclosures.Global Equity 12-Month Rating DefinitionsBuy: FSR is > 6% above the MRA. Neutral: FSR is between -6% and 6% of the MRA. Sell: FSR is > 6% below the MRA.Key DefinitionsForecast Stock Return (FSR) is defined as expected percentage price appreciation plus gross dividend yield over thenext 12 months.

Market Return Assumption (MRA) is defined as the one-year local market interest rate plus 5% (a proxy for, and nota forecast of, the equity risk premium).

Under Review (UR) Stocks may be flagged as UR by the analyst, indicating that the stock's price target and/or ratingare subject to possible change in the near term, usually in response to an event that may affect the investment case orvaluation.

Exceptions and Special CasesCore Banding Exceptions (CBE): Exceptions to the standard +/-6% bands may be granted by the Investment ReviewCommittee (IRC). Factors considered by the IRC include the stock's volatility and the credit spread of the respectivecompany's debt. As a result, stocks deemed to be very high or low risk may be subject to higher or lower bands as theyrelate to the rating. When such exceptions apply, they will be identified the Companies Mentioned or Company Disclosuretable in the relevant research piece.

Disclosures (31 January 2016)Abbott Laboratories 1, 2, 3, 4, 5, 6, AbbVie 1, 2, 5, Accenture Plc 1, 3, 4, Aetna Inc. 1, 2, 3, 4, 5, 6, 7, 8, Alphabet Inc.Class A 1, 2, 5, 8, Ameriprise Financial 1, 2, 6, 8, 9, 10, Anadarko Petroleum 1, 2, 3, 4, 5, 6, 7, 9, Apple Inc. 1, 2, 3,4, 5, Applied Materials Inc. 1, 3, 4, Bank of America 1, 2, 3, 4, 5, 6, 7, 8, 11; Boeing Co. 1, 3, 4, 10, Centene Corp. 1,Cisco Systems Inc. 1, 2, 3, 4, 6, 7, 8, 11; Colgate-Palmolive Co. 1, 3, 4, 9, Comcast Corp. (Cl A) 1, 2, 5, 6, 8, 10, 11; CVSHealth 1, 2, 3, 4, Eli Lilly and Co. 1, 2, 3, 4, 5, 6, 7, 8, 11; FedEx Corp. 1, General Electric Co. 1, 2, 3, 4, 5, 7, 8, 10, IntelCorp. 1, 2, 3, 4, 5, 6, 7, 8, 10, Invesco 1, 2, 3, 4, 5, 8, 9, JPMorgan 1, 2, 3, 4, 5, 6, 8, 11; Kraft Foods Group Inc. 2, 5,LAM Research Corp. 1, Lululemon Athletica 1, McKesson Corp. 1, Medtronic Inc. 1, 2, 5, 6, 8, Microsoft Corp. 1, 2, 3,4, 5, 6, 8, Mondelez International 1, 2, 3, 4, 6, 7, 8, 11; Nike Inc. 1, Priceline.com 1, Sandisk 1, 2, Schlumberger 1, 3, 4,Southern Company 1, 2, 3, 4, 5, 6, 11; Texas Instruments Inc. 1, 3, 4, The Kraft Heinz Company 1, United TechnologiesCorp. 1, 2, 3, 4, 10, VMware, Inc 1, 3, 4, 7, WhiteWave Foods Co. 1, 9,

1. UBS Securities LLC makes a market in the securities and/or ADRs of this company.2. Within the past 12 months, UBS Securities LLC and/or its affiliates have received compensation for products andservices other than investment banking services from this company/entity.3. This company/entity is, or within the past 12 months has been, a client of UBS Financial Services Inc, and non-investment banking securities-related services are being, or have been, provided.4. Within the past 12 months, UBS Financial Services Inc has received compensation for products and services otherthan investment banking services from this company.5. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securitiesservices are being, or have been, provided.6. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investmentbanking services are being, or have been, provided.



http://www.ubs.com/disclosures

Appendix

7. UBS AG, its affiliates or subsidiaries expect to receive or intend to seek compensation for investment banking servicesfrom this company/entity within the next three months.8. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investmentbanking securities-related services are being, or have been, provided.9. UBS AG, its affiliates or subsidiaries beneficially owned 1% or more of a class of this company's common equitysecurities as of last month's end (or the prior month's end if this report is dated less than 10 days after the most recentmonth's end).10. The equity analyst covering this company, a member of his or her team, or one of their household members has along common stock position in this company.11. UBS AG, its affiliates or subsidiaries has acted as manager/co-manager in the underwriting or placement ofsecurities of this company/entity or one of its affiliates within the past 12 months.



Appendix

Disclaimer

In certain countries UBS AG is referred to as UBS SA. This publication is for our clients’ information only and is notintended as an offer, or a solicitation of an offer, to buy or sell any investment or other specific product. It does notconstitute a personal recommendation or take into account the particular investment objectives, financial situation andneeds of any specific recipient. We recommend that recipients take financial and/or tax advice as to the implicationsof investing in any of the products mentioned herein. We do not provide tax advice. The analysis contained herein isbased on numerous assumptions. Different assumptions could result in materially different results. Other than disclosuresrelating to UBS AG, its subsidiaries and affiliates, all information expressed in this document were obtained from sourcesbelieved to be reliable and in good faith, but no representation or warranty, express or implied, is made as to its accuracyor completeness. All information and opinions are current only as of the date of this report, and are subject to changewithout notice. This publication is not intended to be a complete statement or summary of the securities, markets ordevelopments referred to in the report. Opinions may differ or be contrary to those expressed by other business areas orgroups of UBS AG, its subsidiaries and affiliates. Chief Investment Office (CIO) Wealth Management (WM) Researchis published by UBS Wealth Management and UBS Wealth Management Americas, Business Divisions of UBS AG (UBS)or an affiliate thereof. CIO WM Research reports published outside the US are branded as Chief Investment Office WM.UBS Investment Research is written by UBS Investment Bank. Except for economic forecasts, the research processof CIO WMR is independent of UBS Investment Research. As a consequence research methodologies applied andassumptions made by CIO WMR and UBS Investment Research may differ, for example, in terms of investment horizon,model assumptions, and valuation methods. Therefore investment recommendations independently provided by the twoUBS research organizations can be different. The analyst(s) responsible for the preparation of this report may interactwith trading desk personnel, sales personnel and other constituencies for the purpose of gathering, synthesizing andinterpreting market information. The compensation of the analyst(s) who prepared this report is determined exclusively byresearch management and senior management (not including investment banking). 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