The Technical Take - November 4, 2013.pdf

8/14/2019 The Technical Take - November 4, 2013.pdf

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Report prepared by:

Ryan Lewenza, CFA, CMT

North American Equity Strategist

Inside

Technical Commentary (Pages 210)

Technical Almanac Trading Ideas

(Pages 1113)

Sentiment Indicators (Page 14)

Overbought/Oversold Stocks (Page 15)

Market Statistics (Page 16)

This Document is for distribution to Canadian

clients only.

Please refer to Appendix A in this report for

important information.

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Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13

AAII Investor Sentiment Bearish %

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

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

Volume 8 Highlights

The S&P/TSX Composite Index (S&P/TSX) broke above a key

technical resistance level of 12,900 in October. We view this

breakout as an important event for the S&P/TSX, as we believe it is

now in a new higher trading range. With the recent strength, the

S&P/TSX is now technically overbought and we expect some near-

term backing and filling for the S&P/TSX; however, we are growingmore bullish on the S&P/TSX.

We have been bullish on the Canadian financials sector; however

we believe the sector is due to take a breather in the coming weeks

Given the recent strong gains and overbought condition, we could

see some near-term profit taking.

We continue to believe that the U.S. Federal Reserve`s (Fed) asset

purchases are providing a significant boost to the equity markets

and with our expectations of the Fed taper being pushed out unti

Q1/14, we see the potential for continued strength in U.S. equities

In the near-term, however, we see the potential for a pause in the

rally and more likely, some short-term profit taking.

Bearish investor sentiment has dropped to levels not seen sinceearly 2012. Currently 17.6% of investors surveyed are bearishwhich is well below the long-term average of 31%. Overall, investorsentiment is heavily skewed to the bullish camp, which could beforeshadowing a short-term pull back in the equity markets.

In this weeks report, we highlight Corning Inc. (GLW-N) andTeck

Resources Ltd. (TCK-T) as attractive buy candidates and

recommend investors trim/sell International Business Machines

Corp. (IBM-N).

Chart of the Week The Bears Have Gone Into Hibernation

November 4, 2013


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The TechnicalTake November 4, 2013

Page 2

Technical Commentary

S&P/TSX Composite Index

Its a positive sign when you have to expand your date range following a technical breakout to help determine next

resistance levels.

The S&P/TSX Composite Index (S&P/TSX) broke above a key technical resistance level of 12,900 in October

which has contained the S&P/TSX for much of the year. We view this breakout as an important event for the

S&P/TSX, as we believe it is now in a new higher trading range.

With the recent strength, the S&P/TSX is now technically overbought with its Relative Strength Index (RSI) reading

of 77.80. In fact, the S&P/TSX is the most overbought it has been in over three years. Additionally, we note that the

S&P/TSX is quickly approaching its next resistance level of 13,500. Given the overbought technical condition and

with the S&P/TSX at technical resistance, we expect at a minimum, a pause in its ascent and more likely some

short-term profit taking to help work off its overbought condition.

Overall, we expect some near-term backing and filling for the S&P/TSX; however, we are growing more bullish on

the S&P/TSX, and believe it could now be trading in a new higher trading range.

Key support level to watch is 12,900, which is the convergence of the 50-day moving average (MA) and previous

resistance. Next key resistance levels are 13,500, then roughly 14,000.


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Page 3

Canadian Sector Highlights

Last Trend of Trend of RSI Market

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

S&P/TSX MATERIALS INDEX 2224.88 2179.00 Uptrend 2362.66 Downtrend 56.52 Neutral 1 1 11 11 11 9

S&P/TSX INDUSTRIALS IDX 1907.61 1749.04 Uptrend 1691.16 Uptrend 79.29 Overbought 2 9 4 2 4 3

S&P/TSX UTILITIES INDEX 1829.93 1 738.48 Uptrend 1859.67 Downtrend 70.65 Overbought 3 4 6 5 8 1S&P/TSX COMPOSITE INDEX 13441.80 12868.34 Uptrend 12621.63 Uptrend 77.96 Overbought 4 5 9 7 6 6

S&P/TSX TELECOM SERV IDX 1145.94 1 091.91 Uptrend 1113.56 Uptrend 68.93 Neutral 5 7 1 10 7 2

S&P/TSX CONS DISCRET IDX 1457.36 1390.85 Uptrend 1259.69 Uptrend 75.73 Overbought 6 10 8 3 3 7

S&P/TSX FINANCIALS INDEX 2027.85 1920.67 Uptrend 1845.56 Uptrend 83.65 Overbought 7 3 5 6 2 8

S&P/TSX CONS STAPLES IDX 2601.06 2502.49 Uptrend 2351.20 Uptrend 68.73 Neutral 8 8 3 4 1 11

S&P/TSX HEALTH CARE IDX 1465.75 1419.52 Uptrend 1217.80 Uptrend 59.58 Neutral 9 2 10 1 10 5

S&P/TSX ENERGY INDEX 2869.72 2779.91 Uptrend 2730.57 Uptrend 67.20 Neutral 10 6 7 9 5 10

S&P/TSX INFO TECH INDEX 135.48 136.49 Downtrend 129.03 Uptrend 45.87 Neutral 11 11 2 8 9 4

Ranking of Weekly Momentum

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

Weekly Momentum:

The materials sector has recently shown strength, with the sector in the top spot of the sector rankings for two

consecutive weeks.

The industrials sector remains strong, coming in near the top of the sector rankings over the last six weeks.

The rate-sensitive utilities and telecommunications sectors have been showing improved performance over the last

six weeks.

The information technology and energy sectors underperformed last week, coming in at the bottom of the sector

rankings.

Market Condition:

As a result of the recent strength in the S&P/TSX, a number of sectors are registering an overbought technica

condition. The industrials, utilities, consumer discretionary, and financials sectors are all overbought with RSIsabove 70. As such, we expect some near-term backing and filling in these sectors.

Other:

Despite the recent strength, the utilities and materials sectors remain below their 200-day MAs, which factor into our

call to underweight these sectors within portfolios.


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S&P/TSX Capped Financial Services Index

We have been bullish on the Canadian financials sector and now believe that the sector is due to take a breather inthe coming weeks, following its 7% gain since early October and 18% gain since June.

The S&P/TSX Capped Financial Services Index remains in a well-defined uptrend, supported by its rising 50- and

200-day MAs. The sector continues to outperform the broader market, making a succession of higher relative highs

over 2013 (lower panel).

With these strong gains, the financials sector is now technically overbought, with an RSI level of 82.44 (above 70

indicates overbought) and an elevated MACD indicator.

Considering these gains and overbought condition, we see the potential for near-term profit taking, with the

S&P/TSX Capped Financial Services Index possibly pulling back to 215, which is the convergence of the short-term

uptrend and the 50-day MA.

Despite the potential for near-term downside pressure, we remain constructive on the sector given its strong relative

strength and solid price uptrend.


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Page 5

S&P 500 Index

This week, we are looking at a longer-term (weekly) chart for the S&P 500 Index (S&P 500). Following the breakoutabove short-term resistance of 1,729 (Septembershigh), the S&P 500 has been slowly and methodically movinghigher, making new all-time highs. The S&P 500 is quickly approaching an important resistance level just below1,800, which is where the long-term upper channel line intersects.

We continue to believe that the U.S. Federal Reserve`s (Fed) asset purchases are providing a significant boost tothe equity markets, and with our expectations of the Fed taperbeing pushed out until Q1/14, we see the potentiafor continued strength in U.S. equities. Our bullish view for the S&P 500 is predicated on: 1) the S&P 500 remainingin a solid upward channel; 2) the S&P 500 trading above its rising 50- and 200-week MAs, 3) the small-cap Russel2000 Index continuing to outperform the S&P 500 (lower panel); and 4) cyclical sectors continuing to outperform thedefensive sectors.

In the near-term, however, we see the potential for a pause in this rally, and more likely, some short-term profitaking. This is based on the following observations: 1) the S&P 500 is technically overbought on a daily and weeklybasis; 2) the percentage of stocks in the NYSE above their 50-day MAs recently hit 85 (above the 80 overboughlevel); 3) put/call ratios are low; and 4) investor sentiment is very bullish (see page 7).

Overall, our call is for a short-term pullback to work off the overbought condition, but given the continued supportiveFed policies, and the bullish long-term technical trends, we remain buyers on weakness.


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Page 6

U.S. Sector Highlights

Last Trend of Trend of RSI Market

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

S&P 500 INDUSTRIALS IDX 422.55 399.97 Uptrend 375.74 Uptrend 72.53 Overbought 1 10 3 10 3 1

S&P 500 UTILITIES INDEX 199.16 190.97 Uptrend 193.66 Uptrend 66.35 Neutral 2 11 1 9 2 2

S&P 500 CONS DISCRET IDX 502.68 477.49 Uptrend 444.95 Uptrend 68.65 Neutral 3 8 11 3 1 4S&P 500 MATERIALS INDEX 277.52 265.85 Uptrend 253.45 Uptrend 64.61 Neutral 4 7 10 2 8 5

S&P 500 TELECOM SERV IDX 160.74 151.63 Uptrend 156.20 Uptrend 69.80 Neutral 5 1 5 8 6 11

S&P 500 CONS STAPLES IDX 439.65 416.74 Uptrend 412.34 Uptrend 75.94 Overbought 6 9 2 11 11 6

S&P 500 INDEX 1769.51 1691.86 Uptrend 1619.50 Uptrend 70.53 Overbought 7 5 6 7 7 7

S&P 500 INFO TECH INDEX 546.15 522.02 Uptrend 498.63 Uptrend 69.47 Neutral 8 6 8 6 4 8

S&P 500 HEALTH CARE IDX 615.04 589.94 Uptrend 555.17 Uptrend 67.54 Neutral 9 3 9 1 9 9

S&P 500 ENERGY INDEX 632.70 610.18 Uptrend 591.30 Uptrend 65.41 Neutral 10 4 7 4 5 10

S&P 500 FINANCIALS INDEX 280.92 271.73 Uptrend 259.22 Uptrend 61.97 Neutral 11 2 4 5 10 3

Ranking of Weekly Momentum

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

Weekly Momentum:

The industrials sector performance has oscillated in recent weeks; however, the price trend remains positive, with

the sector being one of our preferred sectors.

The rate-sensitive utilities, telecommunications and consumer staples sectors outperformed last week.

The financials sector, which has been outperforming, slipped to last spot last week.

Market Condition:

The industrials and consumer staples sectors are currently overbought with RSIs above 70.

Other:

With the recent strength, all S&P 500 sectors are now trading above their 50- and 200-day MAs.


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Last reading of 49.2% is well abovelong-term average of 39%.

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AAII Investor Sentiment Bearish %


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

Investor Sentiment Update

We closely track investor sentiment, as wehave found it to be a good contrarianindicator, and often predictive when aextreme levels.

Recent surveys by the American Associationof Individual lnvestors (AAII) exhibit a verybullish investor public.

The current percentage of bullish investors is49.2%, which is near peak levels and welabove its long-term average of 39%.

Similarly, bearish investor sentiment hasdropped to levels not seen since early 2012.

Currently 17.6% of investors surveyed are

bearish, which is well below the long-termaverage of 31%.

Subtracting the bulls from the bears, thecurrent reading of 31.6% is the highesreading since January 2012.

Overall, investor sentiment is heavily skewedto the bullish camp, which could beforeshadowing a short-term pull back in theequity markets.


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Page 8

U.S. S&P 500 Healthcare Sector Index

While our current preference is for the cyclical sectors, we remain bullish on the U.S. healthcare sector, as it

continues to outperform the broader market.

The S&P 500 Healthcare Sector Index remains in a solid upward channel, supported by its rising 50- and 200-day

MAs. In the near-term, the sector is trading at the top of its upper channel, which could result in a short-term

pullback, with the sector possibly retreating to its 50-day MA at 590.

Given the healthcare sectors strong price and relative trends, we remain constructive on the sector and would

recommend that investors increase exposure on short-term weakness.


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Page 9

Intermarket Picture

U.S. Dollar Index The U.S. Dollar Index has declined to key support around 79. Now we expect a short-term move

higher in the dollar, possibly back up to resistance around 80.50. This level should prove difficult to break as its formed by

the convergence of the short-term downtrend and previous resistance. Overall, we see the U.S. Dollar Index trading more

range-bound in the coming months, until the Fed begins its taper, likely in Q1/14.

U.S. 10-Year Treasury Yield Little has changed with the 10-year U.S. Treasury yield since our last report. It remains

range-bound between 2.45% and 2.90%, which we expect to continue in the weeks ahead. We note that momentum

(MACD) remains weak but could soon bottom. If this plays out, we expect to see the 10-year mover higher in the short

term, possibly back up to its 50-day MA, currently at 2.71%. Overall, we see the 10-year yield as range-bound in the near-

term, before it moves higher in 2014.


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Gold Gold has recently rallied off short-term support around US$1,270/oz. and is now finding resistance at its short-

term downtrend. If gold is able to break above its downtrend, we could see it move up to next resistance around

US$1,430/oz. but would expect this to cap any additional upside. Overall, we maintain our call for gold to remain range-

bound between US$1,180/oz. and US$1,480/oz. on an intermediate basis.

West Texas Intermediate (WTI) Oil Our call for WTI prices to pull back in recent months has been realized with WT

pulling back to support around US$98/bl. In fact, WTI has broken down through this support and its 200-day MA. Despite

this, we see the potential for a trading bounce given its near oversold condition, with its RSI reading of 33.44 and its

MACD in oversold territory.


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Technical Almanac Trading Ideas

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

We are highlighting the technical breakout of Corning Inc. from our breakout/breakdown model*.

GLW has struggled over the last two years, with the stock price being contained by stiff technical resistance around

the $14 level. However, we believe the stocks technical profile is improving. There was a change of polarity in GLW, with resistance of $14 becoming technical support in recent months. This

was the first bullish development for the stock, and an important sign that things were improving. Then GLW brokethrough its lower short-term trendline on the breakout, which was accompanied by a surge in volume of 6x its normaaverage trading volume. Finally, we note GLW is trading above its rising 50- and 200-day moving averages.

Given the breakout we see the potential for additional upside, but with the stock overbought in the short term, wewould prefer to buy on weakness. Our technical target on this trade is $20 to $21.

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

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

volume.


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Page 12

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

The materials sector has underperformed the S&P/TSX Composite Index year-to-date. However, recently there hasbeen a noticeable improvement in key stocks within the sector, such as Teck Resources Ltd.

TCK.B had been trading in a range between roughly $21 and $30 since March, but recently broke above thisresistance level. The breakout completed the inverse head and shoulders pattern, which has been forming over thelast eight months. Based on this technical event, the measuring implication is for TCK.B to rally up to $39. Followingthe breakout the stock is now trading above key resistance of $29/$30, which may signal a new higher trading rangefor TCK.B.

As is common with breakouts, TCK.B is close to being overbought with a Relative Strength Index (RSI) reading o65. As such, we could see the share price pull back in the near term. If the stock pulls back and holds the $29/$30resistance (now support) level, then we would become more bullish on the stock. We recommend investors buyTCK.B on weakness, but also recommend a stop loss of $26, which is just below the share prices October lows.


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

International Business Machines Corp. has significantly underperformed year-to-date, and given its weak technicaprofile we would reduce/sell positions into any short-term strength.

Since peaking in March 2013, IBM has been trading in a downward channel and recently broke below a key

technical support range of $179 to $182.50. The technical breakdown on October 17 was on heavy volume, withvolume 5x its average daily amount. IBM is trading below its declining 50- and 200-day moving averages (MA), andits relative strength remains weak (lower panel).

Given IBMs recent weakness the stock is now experiencing an oversold bounce, which could take the stock back upto resistance in the $185 to $190 range (red box). We would reduce/sell IBM on any near-term strength, as we seethe potential for further weakness following its short-term bounce.


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Sentiment Indicators

Level 1 M Ago 3 M Ago Level 1 M Ago 3 M Ago13.46 16.60 13.45 0.87 1.11 1.00

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

Bulls 44.97 36.05 45.12 73 68 75

Bears 21.48 30.61 22.56

Bulls - Bears 23.49 5.44 22.56

VIX CBOE Put/Call

% of Stocks Above

200-day MA

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AAII Investor Sentiment: Bulls Minus Bears

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Volatility (VIX) Index

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CBOE Total Put/Call Ratio 5-Day MA

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


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Overbought/Oversold Stocks

S&P 500

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

SOUTHWEST AIRLINES CO 85.99 EDWARDS LIFESCIENCES CORP 25.37

XYLEM INC 85.60 WESTERN UNION CO 28.08

CHIPOTLE MEXICAN GRILL INC 82.75 CITRIX SYSTEMS INC 28.40

FEDEX CORP 82.63 MERCK & CO. INC. 30.81

LORILLARD INC 81.85 MEADWESTVACO CORP 31.23

UNITED PARCEL SERVICE-CL B 81.54 FMC TECHNOLOGIES INC 31.65

MCKESSON CORP 81.01 NETAPP INC 31.94

KIMBERLY-CLARK CORP 80.77 AKAMAI TECHNOLOGIES INC 32.55

CR BARD INC 80.54 JABIL CIRCUIT INC 32.91

INTUIT INC 78.68 CABLEVISION SYSTEMS-NY GRP-A 34.89

ARCHER-DANIELS-MIDLAND CO 78.23 CUMMINS INC 35.14

BAKER HUGHES INC 77.79 SYMANTEC CORP 35.29

VALERO ENERGY CORP 76.82 ALTERA CORP 35.34AON PLC 76.57 CAMERON INTERNATIONAL CORP 35.98

KOHLS CORP 75.57 JUNIPER NETWORKS INC 36.11


S&P/TSX Composite

Most Overbought Most Oversold

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

PETROMINERALES LTD 85.52 PRETIUM RESOURCES INC 27.14

GENIVAR INC 84.06 REITMANS (CANADA) LTD-A 28.81

THOMSON REUTERS CORP 83.82 MANITOBA TELECOM SVCS INC 33.09

CAN IMPERIAL BK OF COMMERCE 82.75 BONAVISTA ENERGY CORP 34.22

BANK OF NOVA SCOTIA 80.34 LIGHTSTREAM RESOURCES LTD 36.45

TORONTO-DOMINION BANK 79.84 WI-LAN INC 37.16

WESTSHORE TERMINALS INVESTME 79.05 CORUS ENTERTAINMENT INC-B SH 37.22

HOME CAPITAL GROUP INC 78.75 RIO ALTO MINING LTD 38.13

GENWORTH MI CANADA INC 78.53 WESTPORT INNOVATIONS INC 38.91

GREAT-WEST LIFECO INC 77.49 MEG ENERGY CORP 38.98

POWER FINANCIAL CORP 77.12 CENTERRA GOLD INC 39.68

CANADIAN PACIFIC RAILWAY LTD 76.33 DUNDEE PRECIOUS METALS INC 40.44

SUN LIFE FINANCIAL INC 76.19 NIKO RESOURCES LTD 40.70

NORTH WEST CO INC/THE 76.17 ATHABASCA OIL CORP 42.22NATIONAL BANK OF CANADA 75.95 SHERRITT INTERNATIONAL CORP 42.80



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Market Statistics

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

U.S. S&P 500 1771.95 0.97 4.86 4.60 23.64 24.87 14.22 12.73

Dow Jones Industrial Average 15680.35 1.33 3.23 0.77 19.19 19.26 12.00 10.87

Dow Jones Transportation 7051.80 0.68 6.47 8.46 32.07 37.83 13.81 12.52Dow Jones Utilities 505.85 0.11 4.24 -0.25 10.95 4.86 7.48 5.85

Nasdaq Composite 3952.34 0.60 4.22 8.39 30.17 32.02 16.17 17.96

Russell 2000 1121.07 -0.49 2.95 5.76 30.16 35.03 16.27 15.51

Russell 1000 Value 892.24 0.68 4.69 2.80 23.92 25.74 14.08 11.24

Russell 1000 Growth 826.07 0.99 4.58 7.01 24.81 26.35 15.00 15.60

Canada S&P/TSX Composite 13440.61 1.60 5.23 7.76 8.22 8.31 2.01 6.63

S&P/TSX 60 774.04 1.06 5.61 8.31 8.45 8.78 2.06 5.53

S&P/TSX Smallcap 599.51 -0.33 4.06 7.40 2.44 0.24 -4.03 9.13

S&P/TSX Venture 964.17 -0.88 2.45 5.10 -21.05 -26.65 -20.93 1.05

International DAX 9010.27 0.41 4.93 8.96 18.46 24.20 10.96 12.57FTSE 100 6777.70 0.54 4.45 1.94 14.44 16.72 5.95 9.05

Nikkei 225 14502.35 -1.09 -0.88 4.83 37.83 60.48 15.90 10.81

Hang Seng 23304.02 1.62 1.52 6.04 2.43 7.23 0.16 10.69

Shanghai 2160.46 -1.05 -1.52 7.41 -5.62 3.52 -10.42 4.38

MSCI World 1614.33 0.25 4.42 6.89 20.42 23.84 9.66 10.98

MSCI EAFE 1888.38 -0.15 4.15 9.79 18.06 24.40 5.42 8.86

MSCI Emerging Markets 294.64 1.39 6.06 11.20 6.15 12.07 n/a n/a

S&P 500 Sectors Consumer Discretionary 503.61 1.60 4.36 6.59 33.29 37.62 21.79 22.92

Comsumer Staples 441.29 1.37 6.71 2.84 21.34 19.95 13.88 11.53

Energy 634.86 1.17 4.30 3.86 18.37 16.84 12.54 9.48Financials 281.25 0.19 4.33 1.48 26.55 30.91 12.66 6.01

Health care 616.64 0.53 4.66 3.91 32.49 32.39 19.33 14.43

Industrials 422.71 1.07 5.07 7.76 28.07 32.72 14.86 13.55

Information Technology 545.93 1.46 4.88 6.94 17.42 18.18 11.62 16.17

Materials 278.07 -0.09 4.31 8.44 16.33 21.44 8.66 12.10

Telecommunications 161.21 1.37 7.44 2.34 9.83 7.69 9.73 9.04

Utilities 199.14 0.14 4.21 -0.81 11.35 5.54 7.14 5.97

S&P/TSX Sectors Consumer Discretionary 1460.54 0.97 4.98 9.01 36.42 41.31 11.13 11.43

Comsumer Staples 2604.26 0.23 5.40 1.33 23.50 31.27 15.97 13.60

Energy 2878.13 2.04 3.33 5.31 8.26 6.45 0.55 3.45

Financials 2027.75 1.68 5.98 9.07 15.64 20.65 7.64 8.23Health care 1485.56 -2.55 7.23 13.14 61.85 66.44 44.58 38.57

Industrials 1909.93 1.10 10.03 12.08 28.17 33.67 14.60 13.90

Information Technology 135.42 -0.35 0.76 3.60 28.23 35.03 -15.72 -8.70

Materials 2195.11 3.46 4.53 7.41 -25.52 -31.08 -15.95 4.34

Telecommunications 1146.76 0.23 4.88 10.36 7.27 6.70 10.41 6.44

Utilities 1835.96 0.26 5.45 -0.55 -5.32 -5.57 -0.10 2.99Source: Bloomberg Finance L.P. 3 and 5 year returns are annualized. As at October 30, 2013


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Appendix A Important Disclosures

General Research Disclaimer

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

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

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

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

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

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

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

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

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

Technical Research Disclaimer

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

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

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

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

Research Report Dissemination Policy

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

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

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

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

Analyst Certification

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

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

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

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

Conflicts of Interest

The Portfolio Advice & Investment Research analyst(s) responsible for this report may own securities of the issuer(s) discussed in thisreport. As with most other employees, the analyst(s) who prepared this report are compensated based upon (among other factors) the

overall profitability of TD Waterhouse Canada Inc. and its affiliates, which includes the overall profitability of investment banking

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

Corporate Disclosure

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

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

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

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

Bank.

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

All trademarks are the property of their respective owners.

/The TD logo and other trade-marks are the property of the Toronto-Dominion Bank or a wholly-owned subsidiary, in Canada and/or in

other countries.

The Technical Take - November 4, 2013.pdf

Documents

Transcript of The Technical Take - November 4, 2013.pdf