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Technical Timing

eResearch Corporation is pleased to provide regular technical opinions on the market by

Don Vialoux of Tech Talk: TimingTheMarket.ca.

Tech Talk: TimingTheMarket - Completely free. Professional and insightful opinions and

viewpoints on the market from a technical perspective. Includes charts and commentary.

Comments in Tech Talk reports are solely the opinion of Mr. Don Vialoux. Daily market letters are

accessible though DVTechTalk.com and TimingTheMarket.ca (see links below).

Donald Vialoux, co-founder of Tech Talk, is a past president and director of the Canadian Society of Technical Analysts (CSTA). He holds the designation of Chartered Market Technician (CMT). Mr. Vialoux has 45 years of experience in the investment industry, including prominent positions held at Richardson Greenshields and RBC Investments. He is the author of a daily letter on equity markets, which is available free at TimingTheMarket.ca. The website has recently received an average of 200,000 hits per day from 130 countries. Links: http://www.timingthemarket.ca/techtalk/ AND http://dvtechtalk.com/ Mr. Vialoux is also the author of a weekly column published at GlobeAndMail.com that combines technical, fundamental, and seasonality analysis. He is a frequent presenter on Business News Network (BNN) Television. Mr. Vialoux also offers advice to the Horizons Seasonal Rotation ETF (HAC).

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Tech Talk: TimingTheMarket.ca August 21, 2015

Tech Talk: Timing The Market

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Tech Talk for Friday, August 21, 2015

Interesting Charts The S&P 500 Index broke and moved below its 200-day moving average and completed a Head & Shoulders pattern on a break below 2,039.69.

The NASDAQ Composite Index broke below its 200 day moving average and fell below support at 4.901.51.

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The VIX Index spiked higher.

One of the weakest sectors was the Solar Energy ETF after breaking a key support level.

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StockTwits Released Yesterday @equityclock TSX Composite is testing long-term support around 14,000, a break of which could see a test of 13,000.

TSX Financial Services Index broke support at 234.22 to resume a downtrend. Ditto for $XFN.CA and ZEB.CA See charts on the next page).

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$BMO.CA joined $BNS.CA and NA.CA by breaking support at $70.46 and resuming a downtrend.

Nice breakout by $FNV.CA above resistance at $61.80. Gold and gold stocks led Canadian equities on the upside.

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$CP.CA resumed a massive double top pattern by breaking support at $189.79.

The German ETF $EWG resumed an intermediate downtrend by breaking support at $26.62.

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‘Tis the season for weakness in the DAX Index until mid-October!

Technical Action by Individual Equities after Noon yesterday Another 12 S&P 500 stocks broke support after Noon. None broke resistance. TSX 60 stocks that broke support included Bank of Montreal, Canadian Pacific and Enbridge. None broke resistance.

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Trader’s Corner

Changes to “Trader’s Corner”: Repeat from yesterday. In order to clarify and to fine-tune optimal short-term buy and sell/short opportunities, technical scores are calculated in a slightly different way. The new scores also are more useful as technical barometers showing bullish/bearish tendencies. Previously, investments had a technical score ranging from 0 to 3. The new score has a range between -6 and +6. The same technical indicators (trend, relative strength, 20 day moving average, short term momentum indicators) are measured. However, a greater weight is given to trend and relative strength. In addition, short-term momentum indicators are given a score. Following are the new scores:

Following is an example showing how new technical scores for major equity markets are calculated:

(BW: This is followed by the actual scores/components for the three groups: industrial

sectors; equity indices; and selected commodities.)

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Daily Seasonal/Technical Equity Trends for August 19th 2015

BW: Following the tables for the three groups, there is an explanation of how to use these

tables. Trader’s Corner (continued) The tables following track the changes in technical parameters for industry sectors, equity indices, and selected commodities yesterday: Key: For the three charts that follow: ● Seasonal: Positive, Negative, or Neutral on a relative basis applying EquityClock.com charts ● Trend: Up, Down, or Neutral ● Strength relative to the S&P 500 Index: Positive, Negative, or Neutral ● Momentum based on an average of Stochastics, RSI, and MACD: Up, Down, or Mixed

Green: Upgrade, an increase from the previous day Red: Downgrade, a decrease from the previous day

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1. Sectors: Daily Seasonal/Technical Sector Trends for August 20

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2. Equities: Daily Seasonal/Technical Equity Trends for August 20

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3. Commodities: Daily Seasonal/Technical Commodity Trends for August 20

HOW TO USE THIS REPORT Start with the SEASONALITY rating. If positive, do not short. If negative, do not go long. If neutral, seasonality is not a factor. Next, look at TREND and STRENGTH relative to the S&P 500 Index for U.S. indices, equities and ETFs, and to the TSX Composite Index for Canadian. To buy, at least one of trend/relative strength (preferably both) are trending up/positive. Positive relative strength frequently will occur before the start of a new uptrend. Conversely, to sell/short sell, at least one of trend/relative strength (preferably both) are trending down/negative. Negative relative strength frequently will occur before the start of a new down-trend.

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Next, look at 20-DAY MOVING AVERAGE and short-term MOMENTUM indicators. Both are useful for fine-tuning short-term buy and sell signals based on seasonality, trend, and relative strength. By definition, they change more frequently than seasonality, trend, and relative strength. In addition, false signals are more common. Best buy signals are recorded when the 20-day moving average and momentum indicators simultaneously turn positive (i.e. move above the 20-day moving average and record a new up-trend by short-term momentum indicators). Under these conditions, a trade usually is profitable on an upside move during at least the next three trading days. Conversely, best sell/short sell signals are recorded when the 20-day moving average and momentum indicators simultaneously turn negative. Under these conditions, a trade usually is profitable for a downside move during at least the next three trading days. Technical scores range from -6 to +6. Technical buy signals, based on the above guidelines, start when a security moves higher, to at least 0, but preferably 2 or higher. Technical sell/short signals start when a security moves lower to 0, but preferably -2 or lower. Long positions require maintaining a technical score of 0 or higher. Conversely, a short position requires maintaining a technical score of 0 or lower. What to expect: On average, approximately half of transactions (long or short) over time will record small profits or small losses. The remainder will catch profitable trades generated by sustained trends lasting 3 days to 6 weeks.

MarketWatch Headline

Headline reads, “A Dow Theory Sell signal is upon us”. Following is a link: http://www.marketwatch.com/story/a-dow-theory-sell-signal-is-upon-us-2015-08-20?dist=countdown The article claims that the Dow Theory Sell signal is signaled on a close by the Dow Jones Industrial Average below 17,164.91.

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World MoneyShow Toronto

Today’s biggest problem for investors is not about falling oil prices, rising interest rates, or China’s stock market swoon; it is that too many are once again being tempted to try and pick tops and bottoms across major equity and commodity markets! Meanwhile, the opportunities that they are missing are the real story, and that is exactly what you will learn about at The World MoneyShow Toronto, October 30-31, 2015, at The Metro Toronto Convention Centre! Join Me, Donald Vialoux, at The World MoneyShow, Friday, October 30, 2015, 4:00 – 4:45 pm. Timing the Market Using Seasonal, Technical, and Fundamental Analysis Attend The World MoneyShow Toronto to meet and mingle with 50+ of the world’s top experts, and discover practical solutions to suit your own unique investing needs and risk profile: Quality investment ideas for growth, income, & value

Identify the top-performing sectors and sub-industries across established and emerging markets and uncover worthwhile buying opportunities in these ever-challenging conditions

Viable alternatives for underperforming energy and commodity investments Carefully analyze and understand oil, gold, and other key assets, see how far they could fall, and adjust your allocation and exposure in favor of other, better-performing assets

Sound portfolio strategies to weather volatility and even a bear market…if one occurs

Hear the pros assess the current health of today’s markets and global economy, as well as discuss sector rotation, diversification, steady income solutions for a low-yield environment, and more

Proven technical methods and option techniques for speculation, income, hedging, and

more Target the latest technical signals flashing for every key market, and study a range of excellent option techniques for traders and investors, each one with proven growth and income-producing power

Registration is open right now for what could be this year’s most timely educational event for investors and traders, and if further incentive is what you’re after, then try this: You’ll receive an all-new special report—a $79 value—as an instant bonus when you register free, simply our way of saying thanks for being such a valuable part of the MoneyShow community!

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Special Free Services available through www.equityclock.com

Equityclock.com is offering free access to a data base showing seasonal studies on individual

stocks and sectors. The data base holds seasonality studies on over 1000 big and moderate

cap securities and indices. Notice that most of the seasonality charts have been updated

recently. To login, simply go to http://www.equityclock.com/charts/

Following is an example: S&P/TSX Composite Index Seasonal Chart NOTE: On average, during the past 20 years, the TSX Composite Index has dropped 3% from the third week in August to the second week in October.

BW: Information on the Authors of Tech Talk follows on the next page.

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About the Authors

Don Vialoux

Donald Vialoux, co-founder of Tech Talk, is a past president and director of the Canadian Society of Technical Analysts (CSTA). Mr. Vialoux has 45 years of experience in the investment industry, including prominent positions held at Richardson Greenshields and RBC Investments. He is the author of a daily letter on equity markets, which is available free at TimingTheMarket.ca. The Web site has recently received an average of 200,000 hits per day from 130 countries. Mr. Vialoux is also the author of a weekly column published at GlobeAndMail.com that combines technical, fundamental, and seasonality analysis. He is a frequent presenter on Business News Network (BNN) Television. Mr. Vialoux also offers advice to the Horizons Seasonal Rotation ETF (HAC). He holds the designation of Chartered Market Technician (CMT).

Jon Vialoux

Jon Vialoux, co-founder of Tech Talk, is a Research Analyst at Horizons Investment Management, Inc where he offers advice to the Horizons Seasonal Rotation ETF (HAC). He is the author and founder of EquityClock.com, which offers the largest source of seasonal profiles for investments on the Internet. Mr. Vialoux is also co-creator of the financial resource Web site, TimingTheMarket.ca, which offers technical, fundamental, and seasonal analysis of the markets. Jon’s market analysis and commentary has been published in the Financial Post, Globe and Mail, Toronto Star, and a number of electronic media sources, such as SeekingAlpha.com and GlobeInvestor.com. He is also a frequent presenter on Business News Network (BNN) Television. Previously, he provided analysis for State Street Global Advisors.

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Disclaimer: Comments and opinions offered in this report at www.timingthemarket.ca are for

information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed. Don and Jon Vialoux are research analysts for Horizons Investment Management Inc. All of the views expressed herein are the personal views of the authors and are not necessarily the views of Horizons Investment Management Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by Horizons Investment Management Inc. SEE: About the Authors, below. Security positions held or not held by Mr. Vialoux will be indicated at the end of each Tech Talk report. Comments in Tech Talk reports are the opinion of Mr. Vialoux. They are based on technical, fundamental and/or seasonal data that is believed to be accurate. The comments are free. Mr. Vialoux receives no remuneration from any source for these services. Comments should not be considered as advice to buy or to sell a security. Investors, who respond to comments in Tech Talk, are financially responsible for their own transactions. All charts in Tech Talk come from StockCharts.com. Stock Charts can be accessed at no cost through www.stockcharts.com.