~08:21 ET

December 9, 2019

Quantitative/Technical Package

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 38 to 41.

Market Elements Page

December 6, 2019 NEW Market Elements 2

Trends & Inflection Points

December 9, 2019 NEW Semi-Annual Energy: Made You Look 9

December 6, 2019 The Technical Sage View on Biotech 10

December 5, 2019 Biotech Blues or Breakout? 11

December 4, 2019 Immunity? 12

December 3, 2019 Why Not Cash? 13

December 2, 2019 Charge 14

November 29, 2019 Holiday Shopping Simplified 15

November 28, 2019 Canadian Thanksgiving Desert 16

November 27, 2019 Alice’s Restaurant 17

November 26, 2019 Reality, Let It Slide 18

November 25, 2019 The Expurgated Capitulation Filter 19

November 22, 2019 The Outperforming Financials 20

November 21, 2019 Trimming Candidates 21

November 20, 2019 Canadian Opportunities 22

November 19, 2019 The Weak Side 23

November 18, 2019 North American Growth Momentum Buys 24

November 15, 2019 The Picture of Health Care 25

November 14, 2019 The Overextended Set 26

November 13, 2019 North American Real Estate Momentum Buys 27

November 12, 2019 Inflection Points 28

November 11, 2019 Technology Bifurcation 29

November 8, 2019 Tune In, Tune Out 30

November 7, 2019 Chemistry 31

November 6, 2019 Rent 32

November 5, 2019 More Industrials 33

November 4, 2019 Consider US Small Cap Growth Now 34

November 1, 2019 Double Vision 35

Focal Points

October 10, 2019 Trainspotting 36

August 20, 2019 Blue Drag 37

Quantitative/Technical

Mark Steele Analyst

mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita

tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng

david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

December 6, 2019

Market Elements

The Hang Seng continued to pivot off of a 2m low, rising 1.1% to lead Asian marketshigher; modest European gains accelerated with North Amer. equity markets on theUS jobs report; most European bourses rose 1-1.5%; the Russell 2000 rose 1.2% tolead North American markets higher; global energy and technology rose 1% or moreto lead all sectors higher, with utilities and real estate lagging gains.

US treasury yields rose as much as 5 bps on US jobs data, and closed 2-3 bps higher;the US 2y yield rose towards a 5d high, while the 30y yield rose to a 14d closinghigh; European equivalents were mixed and little changed, while CDN yields pulledback 3-4 bps; US inflation expectation gauges continued to firm; corp CDS indices fell.

Gold fell 1% (most in 1m), and pulled back towards the November, and 4m low; theBBG USD index rose for the 1st of the past 6d; the euro retreated 40 bps; the loonielost 65 bps, trimming the sharp early week gain; most other moves were slight.

Oil benchmarks gained 120-150 bps, once again reaching the highest levels since theSaudi strike; copper surged 3.2% to a 5m high; nickel rose 1.5% rebounding for a 2nd

day; aluminum rebounded 1%; silver fell 2.4% and broke to a 4m low.

Levels*

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

Symbol H/L Level %Chg Symbol H/L Level %Chg Symbol H/L Level Chg Symbol H/L Level %ChgBBDXY 1,201 0.1% BB Cmdty l 78.24 0.2% U.S. 1.84 0.03 MSCI World 2,297 0.8%EUR l 1.1058 -0.4% WTI Oil 59.12 1.2% Canada 1.58 -0.03 MSCI EM 1,050 0.7%CHF 1.0100 -0.3% NMX Gas l 2.34 -3.5% U.K. 0.77 -0.00 S&P 500 3,146 0.9%GBP 1.3135 -0.2% Gold 1,459.7 -1.1% Germany (0.29) 0.01 S&P/TSX 16,997 0.8%JPYx10 0.0921 0.2% Silver 16.56 -2.4% France 0.03 0.01 STOXX 50 3,692 1.2%CAD 0.7541 -0.6% Platinum 896.5 -0.2% Italy 1.35 -0.02 FTSE 100 7,240 1.4%AUD l 0.6839 0.1% Palladium H 1,878.5 0.2% Spain 0.49 0.00 Hang Seng l 26,498 1.1%NZD l 0.6570 0.4% CMX Cu l 274.95 3.2% Portugal 0.42 -0.00 Topix 1,713 0.1%BRL l 0.2414 1.0% LME Al 3m l 0.80 1.0% Switzerland (0.59) 0.02 S&P/ASX 6,707 0.4%MXNx10 0.5183 0.4% LME Ni 3m 6.11 1.5% Australia 1.13 0.03 CSI 300 3,902 0.6%ZAR l 0.0684 0.2% LME Zn 3m l 1.02 0.2% Hong Kong 1.64 -0.00 CDX IG 5Yr l 49.5 -1.8%KRWx10 l 0.8432 0.2% Lumber 406.90 0.4% China l 3.20 0.01 ARMS 0.7 -24.7%CNH l 0.1424 0.3% Corn l 376.75 0.0% Japan (0.01) 0.02 VIX 13.6 -6.2%

Moves

Currencies (spot) Commodities Government 10-Yr Benchmark Equity Indices

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

CAD

EUR

CHF

GBP

AUD

JPY

ZAR

KRW

CNH

MXN

NZD

BRL

4.0% 2.0% 0.0% 2.0% 4.0%

NMX Gas

Silver

Gold

Platinum

Corn

BB Cmdty

LME Zn 3m

Palladium

Lumber

LME Al 3m

WTI Oil

LME Ni 3m

CMX Cu

-0.04-0.020.000.020.04

Canada

Italy

Hong Kong

U.K.

Portugal

Spain

Germany

China

France

Switzerland

Japan

U.S.

Australia

0.0% 0.5% 1.0% 1.5%

Topix

S&P/ASX

CSI 300

MSCI EM

MSCI World

S&P/TSX

S&P 500

Hang Seng

STOXX 50

FTSE 100

Sectors

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

0.0% 0.5% 1.0% 1.5% 2.0%

Utilities

Real Estate

Hlth Care

Comm Srv

Cons Stap

Cons Disc

Materials

Industrials

Financials

Info Tech

Energy

0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5%

Utilities

Real Estate

Cons Stap

Hlth Care

Comm Srv

Cons Disc

Materials

Info Tech

Industrials

Financials

Energy

0.0% 0.5% 1.0% 1.5% 2.0%

Hlth Care

Comm Srv

Utilities

Real Estate

Industrials

Financials

Cons Disc

Materials

Cons Stap

Info Tech

Energy

1.0% 0.0% 1.0% 2.0% 3.0%

Materials

Real Estate

Utilities

Financials

Info Tech

Cons Disc

Hlth Care

Comm Srv

Cons Stap

Industrials

Energy

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

17:07 ET | 17:07 ET˜2

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

Currencies Commodities Bonds Equities

Market Elements | Page 2 December 6, 20193

Intra Day Charts 2-Day 1-Minute View

Currencies Commodities Bonds Equities

Market Elements | Page 3 December 6, 20194

Daily Sector Charts (U.S., Canadian, European) 3-Month View with 26-Day Bollinger Bands and 150-, 200- and 50-Day Moving Averages

Market Elements | Page 4 December 6, 20195

Market Movers – Largest Daily Percentage Moves

S&P Global 1200 ex U.S. & CDA S&P 500 S&P/TSX CompositeName Symbol % Chg Name Symbol % Chg Name Symbol % Chg

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Energy Tenaris SA TEN IM 2.1% Apache Corp APA 7.6% Cenovus Energy CVE 7.7%

Ecopetrol SA EC US 2.1% Helmerich & Payne HP 5.3% ARC Resources ARX 6.9%

Repsol SA REP SM 2.1% Devon Energy DVN 4.8% MEG Energy MEG 6.6%

Oil Search OSH AU -0.6% HollyFrontier HFC 0.4% Enerflex Ltd EFX 0.3%

Santos Ltd STO AU -0.6% Kinder Morgan KMI 0.4% Gran Tierra Energy GTE 0.0%

Inpex Corp 1605 JP -0.8% Baker Hughes Co BKR 0.3% Parkland Fuel PKI -0.3%

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Materials DS Smith PLC SMDS LN 5.2% Westrock Co WRK 3.1% First Quantum Minerals FM 5.8%

Antofagasta ANTO LN 3.5% Mosaic Co MOS 2.9% Methanex Corp MX 4.1%

ArcelorMittal SA MT NA 3.5% Freeport-McMoRan FCX 2.7% Turquoise Hill Resources TRQ 3.9%

Sumitomo Chemical 4005 JP -2.0% Vulcan Materials VMC -0.3% OceanaGold OGC -5.6%

South32 Ltd S32 AU -2.3% Newmont Goldcorp NEM -0.5% First Majestic Silver FR -6.1%

Cemex SAB de CV CEMEXCPO MF -2.7% Ball Corp BLL -3.9% Torex Gold Resources TXG -6.7%

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Industrials AP Moeller - Maersk MAERSKB DC 4.3% 3M Co MMM 4.3% Canadian Pacific Railway CP 3.1%

Weir Group PLC WEIR LN 3.1% General Electric GE 2.9% Bombardier BBD/B 2.6%

Prysmian SpA PRY IM 2.8% United Rentals URI 2.7% ATS Automation Tooling Systems ATA 2.3%

Mitsui & Co Ltd 8031 JP -0.9% L3Harris Technologies Inc LHX -0.5% Brookfield Business Partners L BBU-U -0.9%

West Japan Railway 9021 JP -1.0% Rollins Inc ROL -0.5% Westshore Terminals Investment WTE -1.0%

Alstom SA ALO FP -1.1% Jacobs Engineering Group JEC -0.7% Transcontinental TCL/A -5.0%

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Cons Disc Marks & Spencer Group MKS LN 4.1% Ulta Beauty ULTA 11.1% Linamar Corp LNR 2.2%

Electrolux ELUXB SS 3.5% Capri Holdings Ltd CPRI 3.4% Sleep Country Canada Holdings ZZZ 1.9%

Industria de Diseno Textil SA ITX SM 3.1% Wynn Resorts WYNN 2.9% Martinrea MRE 1.9%

Subaru Corp 7270 JP -1.4% Lennar Corp LEN -1.8% Spin Master Corp TOY -0.3%

Bridgestone 5108 JP -1.6% NVR Inc NVR -2.4% MTY Food Group MTY -0.4%

SACI Falabella FALAB CI -4.6% DR Horton Inc DHI -2.8% Hudson's Bay HBC -1.0%

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Cons Stap Cencosud SA CENCOSUD CI 3.2% Kroger Co KR 2.6% Alimentation Couche-Tard ATD/B 2.0%

Carrefour SA CA FP 3.0% Archer-Daniels-Midland ADM 1.8% Maple Leaf Foods MFI 1.8%

Ambev SA ABEV US 3.0% Molson Coors Brewing TAP 1.4% Saputo Inc SAP 1.4%

Kerry Group KYG ID -0.7% Walgreens WBA -0.8% Loblaw Cos L 0.5%

Wal-Mart de Mexico SAB de CV WALMEX* MF -0.7% Hormel Foods HRL -0.9% Empire Co Ltd EMP/A 0.5%

Asahi Group Holdings 2502 JP -1.4% General Mills GIS -1.1% North West Co NWC 0.0%

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Health Care Eisai Co Ltd 4523 JP 5.8% Alexion Pharmaceuticals ALXN 6.0% HEXO Corp HEXO 3.7%

Koninklijke Philips PHIA NA 1.9% Mettler-Toledo MTD 3.3% Cronos Group Inc CRON 1.9%

Galapagos NV GLPG NA 1.8% HCA Healthcare Inc HCA 2.8% Extendicare EXE 1.5%

Takeda Pharmaceutical 4502 JP -1.4% Varian Medical Systems VAR -0.5% Chartwell Retirement Residence CSH-U 0.1%

Fresenius Medical Care FME GR -1.6% Edwards Lifesciences EW -1.6% Aurora Cannabis Inc ACB 0.0%

Shionogi 4507 JP -1.8% Cooper Cos COO -1.8% Knight Therapeutics GUD -0.8%

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Financials Swiss Re AG SREN SW 3.0% SVB Financial Group SIVB 3.5% CI Financial CIX 4.4%

UniCredit SpA UCG IM 3.0% Goldman Sachs Group GS 3.4% Manulife Financial MFC 1.4%

Legal & General Group LGEN LN 2.6% MSCI Inc MSCI 2.3% Sun Life Financial SLF 1.1%

AMP Ltd AMP AU -1.3% Intercontinental Exchange ICE 0.2% Equitable Group EQB -1.2%

Grupo Financiero Banorte SAB d GFNORTEO MF -1.3% CME Group CME -0.7% Canadian Western Bank CWB -1.3%

Banco de Chile CHILE CI -2.8% MarketAxess MKTX -1.4% National Bank of Canada NA -1.5%

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Technology Infineon Technologies IFX GR 3.6% Western Digital WDC 3.6% Descartes Systems Group DSG 1.9%

ASML Holding ASML NA 3.4% DXC Technology Co DXC 2.9% BlackBerry BB 1.3%

Dassault Systemes SE DSY FP 3.2% Micron Technology MU 2.8% CGI Inc GIB/A 1.3%

MediaTek Inc 2454 TT -1.2% ServiceNow NOW -0.4% Celestica Inc CLS 0.2%

NEC Corp 6701 JP -1.2% Arista Networks ANET -0.8% Enghouse Systems ENGH -0.4%

Wirecard AG WDI GR -1.6% Fortinet Inc FTNT -1.3% Constellation Software CSU -0.9%

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Comm Svr WPP PLC WPP LN 2.9% News Corp NWSA 1.6% Quebecor Inc QBR/B 1.6%

NAVER Corp 035420 KS 2.1% Netflix Inc NFLX 1.5% Shaw Communications SJR/B 1.2%

Tencent Holdings 700 HK 1.7% Electronic Arts EA 1.1% Rogers Communications RCI/B 1.0%

America Movil SAB de CV AMXL MF -0.7% Take-Two Interactive Software TTWO -0.2% TELUS Corp T 0.8%

Dentsu Inc 4324 JP -1.8% Fox Corp FOXA -0.2% Cineplex Inc CGX 0.1%

SES SA SESG FP -2.0% ViacomCBS Inc VIAC -2.8% Cogeco Communications CCA -0.6%

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg

Utilities Enel Chile SA ENELCHIL CI 2.9% CenterPoint Energy CNP 0.9% TransAlta Renewables RNW 1.5%

Enel Americas SA ENIA US 2.0% NiSource Inc NI 0.6% Capital Power CPX 1.3%

RWE AG RWE GR 1.6% Duke Energy DUK 0.5% Hydro One Ltd H 1.0%

Infraestructura Energetica Nov IENOVA* MF -0.8% Southern Co SO -1.0% Algonquin Power & Utilities AQN -0.6%

Kyushu Electric Power Co 9508 JP -0.8% Sempra Energy SRE -1.1% Innergex Renewable Energy INE -0.8%

APA Group APA AU -1.0% Eversource Energy ES -1.2% AltaGas Ltd ALA -0.9%

SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Column4

Real Estate British Land Co PLC BLND LN 1.8% Vornado Realty Trust VNO 1.7% FirstService Corp FSV 1.7%

Segro PLC SGRO LN 1.8% Macerich Co MAC 1.6% Artis REIT AX-U 0.8%

Deutsche Wohnen DWNI GR 1.7% SL Green Realty SLG 1.3% Dream Industrial REIT DIR-U 0.7%

Mitsui Fudosan 8801 JP -0.1% Ventas Inc VTR -0.5% InterRent REIT IIP-U -0.9%

Mitsubishi Estate 8802 JP -0.3% Healthpeak Properties Inc PEAK -0.6% Tricon Capital Group TCN -1.1%

Fibra Uno Administracion SA de FUNO11 MF -0.7% American Tower AMT -0.6% Canadian Apartment Properties CAR-U -1.3%

Bold = move of more than 5%

Market Elements | Page 5 December 6, 20196

U.S. Market Movers Energy Industrials Consumer Discretionary Consumer Staples Technology Communication Services

Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg

HP 40.68 5.3% UTX 147.0 1.2% APTV 93.77 0.4% WBA 58.63 -0.8% AKAM 85.25 1.1% CCOI 61.65 -0.6%

RIG 5.63 5.8% BA 354.1 2.4% DLPH 12.92 1.7% SYY 82.77 -0.2% VRSN 188.3 1.4% VG l 7.37 1.7%

SLB 36.89 2.9% LMT 386.9 0.2% BWA 43.35 1.6% KR 27.49 2.6% IBM 133.2 1.0% T 38.20 0.0%

HAL 22.33 4.2% GD 183.6 0.6% LEA 124.5 3.2% WMT 119.8 0.9% ACN H 202.6 1.4% VZ H 61.19 0.6%

NOV 23.36 3.5% RTN 217.2 1.1% ALV 83.01 1.1% COST 294.9 0.6% CTSH 62.66 0.7% CTL 14.16 0.1%

FTI l 19.00 0.5% NOC 344.8 0.1% GM 35.54 0.7% TAP l 51.06 1.4% DXC 37.36 2.9% TMUS 77.74 1.0%

BKR 22.21 0.3% LHX 192.5 -0.5% F 9.02 1.0% STZ 183.7 0.7% IT 159.7 0.8% TDS 24.60 3.6%

XOM 69.51 1.6% TDG 570.1 0.9% TSLA 335.9 1.7% BF/B 63.35 -0.3% LDOS 90.68 0.8% OMC 79.95 0.8%

CVX 118.0 1.4% JCI 42.09 0.8% HOG 36.91 2.9% KO 54.42 0.4% DOX H 69.80 0.8% IPG 22.49 0.9%

OXY l 39.01 2.7% EMR H 75.09 1.5% GRMN 96.52 1.0% PEP 137.4 0.7% V 182.2 0.2% VIAC 39.72 -2.8%

COP 61.97 3.6% ETN H 93.08 1.3% MHK 138.7 0.5% MNST 60.04 0.2% MA 290.4 0.2% CMCSA 44.24 0.5%

EOG 73.96 4.8% ROK 198.2 0.9% DHI 54.20 -2.8% KDP 29.29 0.3% PYPL 104.3 -0.2% CHTR 467.9 0.1%

PXD 133.9 4.4% GE 11.10 2.9% NVR 3,761 -2.4% ADM 43.91 1.8% ADP 170.0 1.0% SIRI 6.83 -0.4%

DVN 23.14 4.8% MMM 171.5 4.3% LEN 58.75 -1.8% INGR 86.06 1.5% SQ 67.98 1.3% DISH 33.59 0.0%

APA l 19.99 7.6% HON 175.5 0.8% PHM 40.06 -0.3% BG 53.72 0.4% FIS 138.6 1.2% CABO 1,531 -0.7%

CLR 32.64 4.9% ROP 346.2 -0.2% WHR 147.6 1.8% KHC 31.09 -0.5% FISV 114.5 -0.3% DIS 147.7 0.1%

CXO 76.50 4.2% CAT 142.7 1.2% NWL 19.05 1.7% MDLZ 53.84 0.1% PAYX 85.13 0.8% NFLX 307.4 1.5%

HES 62.26 2.1% CMI 180.4 0.9% MAT 12.07 2.8% GIS 53.31 -1.1% FLT 307.8 1.5% FOXA 35.42 -0.2%

NBL 21.86 4.2% PCAR 81.12 1.3% HAS 101.0 0.7% K H 66.22 0.7% ADS l 105.3 1.6% LYV 70.48 0.5%

MRO 12.45 3.4% DE 165.2 0.4% VFC 90.42 1.4% TSN 89.45 0.0% JKHY 150.7 0.0% ATVI 55.21 0.4%

XEC 47.84 3.6% ITW 174.2 0.8% TPR 25.53 0.3% CAG 28.90 0.4% GPN 176.7 -0.1% EA 103.2 1.1%

COG l 16.08 0.8% SWK 158.9 0.9% HBI 14.97 0.7% HRL 45.34 -0.9% WU 26.86 0.1% TTWO 123.7 -0.2%

AR 2.19 4.3% FTV 72.87 0.8% PVH 101.4 0.7% CPB 47.75 0.3% XRX 37.77 -0.1% FB 201.1 0.8%

FANG 83.23 4.1% IR H 131.7 2.1% CPRI 38.13 3.4% SJM 107.3 0.5% BR 123.0 0.9% GOOGL H 1,339 0.9%

RRC 3.85 6.6% PH H 202.4 1.5% RL 111.7 -0.3% HSY 149.3 -0.5% SABR 22.54 1.9% Utilities

SWN 2.05 4.6% GWW 321.5 1.0% NKE H 97.00 1.3% MKC 172.0 -0.1% GDDY 67.32 -0.5% Symbol H/L Last %Chg

PE 16.27 4.8% WM 111.6 0.1% LVS 64.15 1.4% LW 84.22 -0.2% ADBE 306.2 1.1% NEE 234.4 -0.1%

CHK .76 5.7% RSG 88.77 0.6% MGM 32.17 0.8% POST 109.1 2.0% CRM 158.0 -0.1% DUK 89.76 0.5%

MUR 24.44 2.8% NLSN l 20.16 2.2% WYNN 121.7 2.9% PM 83.25 1.1% INTU 256.2 0.9% SO 62.14 -1.0%

WPX 10.51 4.4% EFX 138.5 0.4% CCL 44.77 1.3% MO 50.41 0.5% SPLK 147.9 1.2% AEP 92.39 -0.1%

EQT l 8.78 2.0% VRSK 146.8 0.5% HLT 105.5 0.5% PG 124.2 -0.3% ADSK 179.3 1.5% PCG 9.65 -1.3%

PSX 113.6 0.9% UPS 117.5 2.2% MAR 142.3 1.4% Financials CTXS 110.6 -0.1% EXC l 44.86 0.0%

VLO 93.61 0.7% FDX 156.6 2.2% RCL 122.1 0.9% Symbol H/L Last %Chg SSNC 59.65 1.0% EIX 71.37 0.0%

MPC 60.20 0.6% DAL 56.14 0.5% NCLH 54.71 0.8% WFC 54.37 2.1% PTC 75.71 -0.1% PPL 34.37 0.1%

HFC 50.94 0.4% LUV 55.94 0.7% MTN 232.8 -1.4% JPM H 135.0 1.5% WDAY 166.2 3.3% XEL 62.00 -0.2%

PBF 30.97 -0.4% AAL 27.73 1.8% MCD 195.4 0.6% BAC H 33.67 1.8% SNPS 134.2 1.8% ES 81.20 -1.2%

INT 43.59 0.9% UAL 88.58 0.8% SBUX 86.32 2.2% C 75.81 1.5% CDK 53.57 0.4% ETR 118.1 -0.3%

KMI 19.75 0.4% UNP 172.0 0.9% YUM 98.77 0.3% USB 60.14 0.9% ANSS H 256.6 1.4% FE 48.38 -0.1%

WMB 22.39 0.9% NSC 190.9 1.6% YUMC 44.79 0.1% CMA 71.37 1.1% TYL 286.3 0.1% AGR l 48.88 -0.3%

LNG l 60.43 1.8% CSX 71.27 0.9% DPZ 286.6 -0.1% PNC H 153.8 1.1% FICO 363.8 0.8% EVRG 63.07 -0.7%

OKE 71.59 0.9% Health Care CMG 822.5 0.3% BBT 54.24 1.4% CDNS 67.18 2.1% LNT 53.11 -0.1%

TRGP 35.83 1.7% Symbol H/L Last %Chg ARMK 43.03 1.7% STI 70.13 1.3% MSFT 151.8 1.2% PNW l 86.20 -0.5%

ETRN l 9.49 2.7% MDT H 113.1 0.8% DRI 119.8 1.1% MTB 166.2 0.7% ORCL 54.83 0.3% UGI l 43.47 1.4%

Materials ABT 85.48 0.3% BFAM 151.7 0.6% FITB 30.25 1.3% FTNT 103.6 -1.3% ATO 106.5 -0.2%

Symbol H/L Last %Chg DHR H 148.2 0.7% SERV 39.69 -1.3% KEY H 19.66 1.9% NLOK 25.46 -0.1% D 81.00 -0.2%

LYB 92.90 1.2% SYK 204.0 0.4% SCI 44.01 0.4% SIVB 237.4 3.5% NOW 272.0 -0.4% SRE 145.8 -1.1%

DD l 63.59 2.6% BDX 260.7 0.7% GPC 103.7 0.7% CFG H 39.03 1.2% VMW 147.1 -0.8% ED 86.79 0.1%

EMN 77.50 2.4% BSX H 44.08 1.9% LKQ 35.75 0.6% RF H 17.04 2.2% CSCO 43.84 0.7% PEG 58.61 -0.2%

CC 16.68 10.8% ISRG 585.6 0.8% POOL 210.6 0.3% FRC H 112.5 1.4% ANET l 190.2 -0.8% Real Estate

MOS l 19.08 2.9% ZBH H 148.5 0.6% AMZN 1,752 0.6% HBAN H 15.21 2.1% PANW 226.4 -1.1% Symbol H/L Last %Chg

FMC 98.42 0.4% BAX 83.17 0.8% BKNG 1,930 1.4% CIT 44.93 1.5% MSI 160.7 0.2% VER 9.64 0.3%

CF 45.34 2.0% EW 239.0 -1.6% EBAY 34.86 0.2% NYCB 11.88 1.3% JNPR l 23.97 -0.3% PLD 91.43 0.1%

APD 232.0 0.7% MCK 142.3 1.2% EXPE 107.6 1.8% BRK/B 222.6 1.4% FFIV 138.0 0.0% DRE 35.17 -0.2%

ECL 186.4 0.7% CAH 54.87 1.1% GRUB 41.01 2.1% AXP 120.6 2.0% AAPL H 270.7 1.9% HST 17.89 1.0%

PPG H 132.5 1.1% CVS 75.36 1.2% QRTEA l 8.70 2.5% COF H 101.4 1.8% HPE 15.91 -0.1% BXP H 139.3 0.1%

SHW 578.5 1.1% HCA 144.6 2.8% W l 84.97 6.4% DFS 84.31 1.4% HPQ 20.50 0.9% VNO 65.56 1.7%

IFF 142.0 0.2% UNH 280.2 -0.3% M l 15.15 0.3% SYF H 37.76 0.7% WDC 49.08 3.6% SLG 86.90 1.3%

CE 125.2 1.5% CI 198.9 1.7% JWN 37.56 0.4% ALLY 31.66 1.5% STX 58.99 0.7% ARE 161.9 0.5%

ALB l 64.30 1.0% ANTM 285.3 -0.4% KSS l 47.15 0.1% BLK H 495.8 1.1% NTAP 61.03 1.6% WELL 83.77 -0.3%

RPM 74.48 1.6% HUM H 348.1 0.8% TGT 125.0 0.3% BK 49.64 0.8% KEYS 103.2 2.4% VTR l 57.47 -0.5%

ASH 74.51 1.8% AMGN 233.8 0.2% DG 154.7 -0.2% STT H 77.02 2.2% TRMB 40.39 1.0% PEAK 34.34 -0.6%

VMC 143.5 -0.3% ABBV 86.98 0.3% DLTR 92.24 1.6% BEN l 27.00 2.0% ZBRA H 256.9 2.1% AVB 215.9 0.0%

MLM 273.3 0.2% GILD 67.08 1.7% TJX 59.84 0.5% TROW H 123.9 0.7% GLW l 27.89 0.7% EQR 84.44 -0.1%

BLL 63.55 -3.9% BIIB 300.3 0.3% ROST 113.9 0.4% AMP H 164.9 1.3% APH 104.0 1.0% ESS 311.9 0.2%

CCK 74.20 -2.1% REGN 372.3 1.1% LB 17.82 -1.4% NTRS H 108.9 1.0% TEL 92.15 1.1% UDR 47.89 0.2%

IP H 47.26 1.6% VRTX 223.3 0.1% BURL 223.0 0.1% IVZ 16.79 1.1% CDW 136.7 1.7% CPT 110.5 -0.2%

WRK 41.23 3.1% ALXN 113.9 6.0% GPS l 16.27 -0.2% AMG 85.43 2.2% AMAT 56.60 1.4% SPG l 148.2 -0.2%

SEE 38.71 1.8% JNJ 140.4 0.6% FL 39.85 0.0% SEIC 64.39 0.6% LRCX 269.9 1.9% GGP H .00

PKG 113.3 0.8% PFE 38.29 0.7% BBY H 82.05 2.2% GS H 224.6 3.4% KLAC 162.9 0.9% O 75.94 0.3%

AVY 130.1 0.2% MRK H 88.85 0.1% HD 214.3 0.6% MS 49.80 1.5% TER 63.94 2.0% KIM 21.18 0.0%

AA 20.60 3.7% BMY H 59.95 0.8% LOW 116.3 0.6% SCHW 48.95 0.4% INTC 56.81 1.3% MAC l 27.17 1.6%

SCCO 38.81 1.1% AGN 186.4 0.2% ULTA 262.2 11.1% AMTD 51.12 0.6% QCOM 83.82 1.5% FRT 131.8 0.5%

FCX 11.64 2.7% LLY 119.6 -0.1% TSCO 97.50 1.1% RJF 90.55 0.7% TXN 122.4 1.4% BRX 21.83 0.3%

NEM 39.80 -0.5% ZTS 121.7 1.3% TIF 133.6 0.0% ETFC 45.81 0.7% AVGO 316.1 1.6% REG 64.36 0.6%

NUE 57.61 2.0% TMO H 320.1 1.3% FIVE 124.2 0.4% CME 206.0 -0.7% NVDA 212.2 1.6% NNN 54.58 -0.1%

H/L = at a new closing 52- wk High/Low; /l = within 10% of the 52- wk High/Low; Bold = move of 5% or more; stocks are sorted by GICS SubIndustry (grey lines) and market capitalization

Market Elements | Page 6 December 6, 20197

Canadian Market Movers Energy Materials Industrials Consumer Discretionary Financials Utilities

Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg Symbol H/L Last %Chg

PD 1.66 12.9% MX 47.59 4.1% CAE 34.57 0.9% MG 71.02 1.0% XIU 25.49 1.0% XSB 27.46 0.0%

ESI 2.87 13.4% CHE-U 10.91 0.6% BBD/B 1.98 2.6% LNR 45.04 2.2% XSP 35.01 0.9% XBB 31.86 0.1%

SCL l 12.69 1.9% NTR l 61.99 1.7% MAXR 14.47 3.5% MRE 12.50 1.9% XIC 27.15 0.8% XCB 21.70 0.0%

CEU 1.94 1.6% CCL/B 57.14 0.3% MAL 15.44 -0.7% DOO 63.88 0.2% HXT 37.60 1.1% XLB 25.60 -0.1%

PSI l 13.05 1.1% WPK 46.89 -0.8% HRX 17.92 1.5% TOY 39.43 -0.3% XDV 25.66 0.5% ZFM 16.42 0.2%

EFX 12.15 0.3% ITP 15.93 -0.6% DOOR US H 72.83 0.5% LULU US 229.4 -0.6% XIN 27.52 1.0% XRB 25.04 -0.2%

SES l 4.40 3.0% CAS 12.15 -0.3% DRT 4.44 0.5% GIL 39.01 1.2% ZLB 35.20 0.6% H H 26.04 1.0%

TEV 7.50 0.1% TECK/B l 21.19 2.4% SNC 23.21 0.1% GOOS 51.51 0.4% CPD 12.04 0.2% FTS 52.79 0.7%

CMG 8.52 0.8% TRQ .79 3.9% WSP 86.01 -0.1% ATZ 18.84 -0.2% XFN 39.85 0.5% EMA 55.34 0.5%

SU 42.35 3.7% LGO .95 -2.1% ARE l 17.68 0.5% TSGI 31.98 0.3% ZEB 29.59 0.1% ALA 19.82 -0.9%

IMO l 33.39 3.4% IVN 3.46 1.8% BAD 35.38 0.3% GC 43.72 0.2% RY 105.0 0.2% SPB 12.40 -0.4%

HSE 9.47 1.1% HBM 4.72 3.3% BBU-U 55.07 -0.9% QSR 87.33 -0.1% TD 73.43 0.6% CU H 39.82 0.1%

CVE 12.33 7.7% MDI 5.90 -1.3% BLDP 8.67 2.0% MTY l 56.91 -0.4% BNS 75.21 0.4% ACO/X H 51.07 0.4%

CNQ 38.91 5.4% ALS 11.48 -0.4% NFI l 26.06 0.7% RECP l 19.57 0.7% BMO 100.1 0.5% NPI 27.92 -0.1%

ECA l 5.35 3.1% FM 12.96 5.8% WPRT 2.99 -0.3% AW-U 38.47 1.9% CM 109.9 0.9% AQN 18.83 -0.6%

PSK 14.36 4.1% LUN 7.41 2.9% AFN 43.99 0.3% DIV 3.15 0.0% NA 71.86 -1.5% CPX H 34.03 1.3%

TOU 14.19 5.9% KAT .13 -3.8% ATA 19.95 2.3% UNS l 10.43 -0.6% CWB 32.62 -1.3% TA 8.96 -0.1%

VII 7.42 3.2% ERO 20.90 1.6% SIS 14.09 0.2% REAL 12.98 -1.4% LB 43.68 0.1% ATP 3.23 4.5%

VET 19.57 3.5% XGD 15.23 -1.6% XTC 8.30 -0.6% HBC 9.13 -1.0% MIC H 57.04 0.1% BEP-U 62.94 0.9%

CPG 4.80 4.1% ABX 22.41 -0.9% FTT 24.07 2.3% DOL 45.51 0.7% HCG 34.45 -0.5% RNW H 15.23 1.5%

ARX 7.48 6.9% FNV 128.8 -0.4% TIH 67.21 0.4% CTC/A 147.7 0.5% FN 41.76 -0.1% INE 17.20 -0.8%

ERF 8.60 3.1% AEM 80.00 -1.2% RCH 26.91 0.8% LNF 16.01 0.0% EQB 111.2 -1.2% BLX 24.72 0.2%

WCP 4.44 3.5% K 5.68 -2.7% RUS 22.76 0.7% ZZZ 20.15 1.9% MKP H 17.40 0.6% Communication Services

PXT 20.25 3.2% DGC 23.93 -2.1% CWX 5.55 0.4% FC 14.61 0.1% Symbol H/L Last %Chg

POU 6.74 3.9% YRI 4.74 -4.8% WJX l 14.65 0.3% ONEX 79.90 0.9% BCE 64.57 0.8%

PEY 3.23 5.6% NGD 1.13 -1.7% TCL/A l 13.54 -5.0% EFN 11.43 0.0% T H 51.25 0.8%

MEG 6.29 6.6% BTO 4.82 -2.2% WCN 120.8 0.9% ECN 4.85 0.0% RCI/B l 64.58 1.0%

FRU l 6.90 2.4% ELD 9.67 -0.4% RBA 57.70 -0.3% Consumer Staples GSY 69.40 1.0% AIM 3.83 -0.3%

GTE US l .99 0.7% PHYS/U 11.84 0.0% BYD-U 200.5 0.8% Symbol H/L Last %Chg BAM/A 77.22 0.7% CJR/B 5.66 3.3%

KEL 4.50 3.7% OGC l 2.37 -5.6% KBL 42.05 -0.3% L 72.10 0.5% IGM 38.57 0.9% RAY/A 6.45 -1.2%

TOG 3.99 5.6% AGI 7.16 -4.7% MSI 33.65 0.0% ATD/B 43.81 2.0% CIX H 21.98 4.4% SJR/B 27.00 1.2%

NVA 2.69 7.6% TXG 18.47 -6.7% TRI 94.04 1.4% WN 108.8 0.6% FIH/U l 11.84 0.9% QBR/B 33.11 1.6%

FEC l 9.00 0.3% EDV 24.10 -2.4% STN 35.53 -0.3% MRU 57.60 0.6% AD 21.99 0.5% CCA 115.1 -0.6%

BIR 2.41 4.8% PVG 13.45 -1.5% CJT 100.1 1.0% EMP/A 35.58 0.5% FSZ 11.08 -0.2% CGO 103.8 -0.6%

BTE 1.50 3.4% IMG 4.62 -1.7% WJA 30.48 0.1% NWC l 28.43 0.0% SII 3.02 -1.3% LGF/A US 9.50 0.4%

CNE 4.50 0.2% NG 9.15 -4.1% AC 49.03 -0.3% CSW/A l 15.40 0.0% GCG/A 27.45 -1.1% CGX 25.12 0.1%

TVE 1.91 3.2% SMF l 2.58 2.0% EIF 44.18 0.8% BCB 18.25 0.7% U l 4.16 0.5% IMAX US 21.84 1.3%

AOI 1.20 0.8% SSRM 22.01 -3.0% CHR 8.02 0.1% VFF 8.73 4.4% AGF/B 6.28 1.3%

SGY l 1.01 1.0% CG 10.39 0.0% CNR 119.0 2.1% SAP l 39.68 1.4% CF l 4.94 1.4%

KEY 32.45 2.0% OR 11.48 -1.3% CP H 325.5 3.1% MFI 24.78 1.8% X 108.0 0.2% Real Estate

PKI 45.86 -0.3% MUX US l 1.14 -4.2% TFII 42.99 0.5% PBH 90.67 1.1% MFC 25.45 1.4% Symbol H/L Last %Chg

ENB H 51.10 0.7% SSL 8.83 -2.5% MTL 8.16 0.4% CLR 5.73 -1.5% GWO H 33.07 0.7% XRE 20.20 -0.3%

TRP 67.35 0.8% CGG 1.09 0.0% WTE l 18.98 -1.0% RSI l 4.86 0.2% SLF 59.06 1.1% HR-U 21.66 -0.2%

PPL 46.56 1.8% LUG 8.24 7.0% JWEL 25.90 -0.1% PWF 33.12 1.1% CUF-U 14.43 -0.1%

IPL 22.18 1.9% ASR 7.05 -3.2% Health Care POW H 32.52 0.9% AX-U 12.00 0.8%

GEI H 26.32 0.5% SEA 16.81 -4.2% Symbol H/L Last %Chg IAG 68.75 -0.8% DRG-U 16.76 -0.1%

TWM 1.08 0.9% PG 2.01 -1.5% CSH-U 14.58 0.1% FFH 603.3 0.5% MRT-U 11.77 -0.3%

CCO 12.97 6.0% KL 53.61 -0.8% SIA 18.73 0.2% IFC 136.4 0.0% ACR-U H 14.25 0.0%

NXE l 1.60 1.3% CNL 5.35 -0.4% EXE 8.62 1.5% GRT-U 68.63 -0.5%

DML l .55 1.9% LMC 2.39 -3.2% GUD l 7.62 -0.8% WIR/U H 14.17 0.0%

PL 8.69 1.4% WDO 9.12 -1.6% TH l 3.81 1.6% Technology DIR-U 13.65 0.7%

XEG 8.77 4.5% AR 1.84 -3.7% BHC H 38.57 1.1% Symbol H/L Last %Chg HOT-U 6.91 0.4%

ROXG .94 1.1% CURA CF 7.74 0.5% SHOP 483.4 0.9% AP-U 53.09 -0.6%

LUC l .82 0.0% HEXO 2.79 3.7% TCX US 58.38 0.0% D-U 30.95 -0.2%

OSK 3.02 -1.9% CRON l 8.91 1.9% GIB/A 110.2 1.3% NWH-U H 12.60 0.4%

DPM H 6.17 3.5% TRST l 1.12 8.7% CSU 1,352 -0.9% CAR-U 54.91 -1.3%

WPM 36.16 -2.3% WEED 24.72 0.9% OTEX 56.58 0.4% BEI-U H 48.58 0.2%

PAAS 26.32 -3.9% OGI 6.85 0.0% DSG 54.87 1.9% NVU-U 30.14 -0.8%

FR 13.91 -6.1% ACB l 3.21 0.0% ENGH 40.63 -0.4% KMP-U 19.66 -0.3%

MAG 13.78 -2.1% APHA 6.22 1.0% KXS 106.2 0.7% IIP-U 16.20 -0.9%

FVI 4.23 -5.4% EMH L .32 -6.0% ABT 8.55 1.8% MRG-U 18.77 -1.1%

PSLV/U 6.11 -1.3% XLY L .61 0.0% SW 11.98 -0.5% REI-U H 27.78 0.4%

SVM 6.78 -3.7% FIRE l .63 1.6% BB 7.17 1.3% SRU-U 31.63 0.0%

EDR 2.87 -4.7% ET 18.11 -0.1% CRT-U H 15.42 0.5%

STLC 10.83 0.7% NOVT US 88.24 1.1% CRR-U 16.02 0.3%

LIF 25.60 1.3% CLS 10.11 0.2% CHP-U 13.93 0.5%

WFT 55.40 2.3% CSIQ US 18.35 2.3% PLZ-U 4.72 0.2%

SJ l 36.68 -0.3% SRT-U 12.94 -0.1%

OSB 35.12 -0.7% MRC 201.9 1.0%

IFP 14.90 -1.4% TCN 11.12 -1.1%

WEF l 1.16 -0.9% BPY-U 24.83 0.6%

UFS 50.62 1.4% FCR 21.64 0.0%

MERC US 12.10 0.3% MEQ 70.68 -1.2%

CFX L 8.16 -0.5% DRM 11.47 -0.4%

RFP 5.53 1.3% MRD 12.65 -0.2% H/L = at a new closing 52- wk High/Low; /l = within 10% of the 52- wk High/Low; Blue = S&P/TSX 60 member, Italics = ETF, Bold = move of 5% or more; stocks are sorted by GICS SubIndustry (grey lines) and market capitalization

Market Elements | Page 7 December 6, 20198

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Semi-Annual Energy: Made You Look

• OK, perhaps our title is too caustic, but energy continues to have the

weakest relative strength breadth score, and it took a pretty sharp

weekly rally in oil (curiously lined up by OPEC and the Saudi Aramco

IPO) to cause the positive severed trends we are seeing on an

absolute level, and in Canada (with weak banks) from a relative

perspective as well – Exhibit 1.

• In Canada, there is some pretty good “rotation in” signaling – Exhibit 2.

• So we highlight the technicals on a large cap and SMID player – Exhibits 3, 4.

Exhibit 1: S&P/TSX Energy vs. TSX Composite Exhibit 2: Energy Stocks vs S&P/TSX Composite

Exhibit 3: Suncor (SU CN) Dividend Adjusted Price Trend Exhibit 4: ARC Resources (ARX CN) Dividend Adjusted Price Trend

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit Note: BMO Capital Markets is Restricted on PPL.

December 9, 2019

Trends & Inflection Points

08:08 ET | 08:08 ET˜9

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

The Technical Sage View on Biotech

• This is our third and final look at the technicals on biotech.

o The last of the macro charts is here – Exhibit 1.

o The reason we don’t run technicals on SMID biotech stocks

is there – Exhibit 2.

o We add value when investors combine our math with their

fundamental perspective by asking these questions – Exhibit 3.

• So do the fundamentals, then…

…Dear, when thou has finished thy task (parsley, sage, rosemary and thyme), come to me, my hand for to ask

Scarborough Fair; Simon & Garfunkel

Exhibit 1: Global Biotechnology vs. Health Care Exhibit 2: Sage Therapeutics Price Trend

Exhibit 3: Who Else Can Give You a Technical Perspective on Price Trends on 121 Biotechnology Stocks in Such a Compressed View?

December 6, 2019

Trends & Inflection Points

08:10 ET | 08:10 ET˜10

Quantitative/Technical

Mark Steele Analyst

mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Biotech Blues or Breakout?

• We feel obligated to go back to health care, as it has improved to

take second place in our relative strength breadth heat map. We

provide context within the other sector opportunities in our updated

view below – Exhibit 1.

• In our coverage of the overbought state of biotechnology yesterday,

we missed a very impressive chart. You will find very few four-year

trends in our work, yet that’s our upper limit. Biotechnology has reached the limit in

terms of duration, and also the limit in terms of being at the top of the channel. From

this technical perspective, there is no question, it’s a sell. If you look at the preceding

four years, that perspective does a 180. Was the past four years just a retracement of

the preceding fantastic run, and is this the breakout? Our system asks the right questions at the right time. This is it – Exhibit 2.

• Then there is the perspective of pharmaceuticals from both a relative and absolute perspective – Exhibits 3, 4.

• So it all comes down to the biotechnology call. Get it right.

Exhibit 1: Global Relative Strength Breath Heat Map Exhibit 2: Biotechnology vs MSCI World (Longer Term Trend in Insert)

Exhibit 3: Global Pharmaceuticals vs MSCI World Exhibit 4: Global Pharmaceuticals Absolute Price Trend

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

December 5, 2019

Trends & Inflection Points

07:47 ET | 07:47 ET˜11

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Immunity?

• We’re very used to the on/off trade rhetoric which ends up slamming

stocks one day, and lifting them another depending on which way

the message winds blow. This morning we looked for a group which

was largely immune from this in the current round, and we found US

biotechnology.

• On a market cap weighted basis, the run has been fantastic. So

fantastic, that the only prescription we have is to find trim candidates – Exhibit 1.

• From an equal weighted breadth perspective, we know that the group is typically a

heterogeneous bunch of stocks, somewhat randomly pivoting from a high to low decile,

and beneath this, always exhibiting a bell shape curve of trends – Exhibit 2.

• At the ETF level, the group has never been so overbought. Never – Exhibit 3.

• At the stock level, when we look at the list of large cap overbought stocks (less immune to individual drug outlook pops/dumps), we

point out the pre-MACD sell chart on Amgen – Exhibit 4.

The Gift That Gives Back

Commercial from a product which eludes us right now

Exhibit 1: S&P 1500 Biotechnology Total Return Index Exhibit 2: Biotechnology Relative Strength Breadth Z-Score

Exhibit 3: NASDAQ Biotechnology ETF (IBB US) DVD Adj Price Trend Exhibit 4: Amgen (AMGN US) Dividend Adjusted Price Trend

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

December 4, 2019

Trends & Inflection Points

08:28 ET | 08:28 ET˜12

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Why Not Cash?

• US short-term paper offers a juicy 1.6%ish yield, which is 1) quite

generous relative to most of the past decade, and 2) while stalled

out as of late, has fallen, making the total return of owning said

instrument a 5% annualized rate of total return over the past 15m.

Further, when compared with equities, which have been on top (the

top performance, yet also, as we have noted, at the top of the

channel) lately, cash looks ominously positioned at the bottom of a channel, which has

spiked higher on a semi-regular basis over the past two years – Exhibit 1.

• In a treasury portfolio, cash has made relative strength higher highs and lows for more

than a quarter now, and one can argue that a trend of outperformance has been

established – Exhibit 2.

o Yet, we see the largest component of this outperformance to be related to the longer duration of the denominator, and the

major factor here has not been a detrimental rise of inflation, but rather the barking dog of real rates. Importantly, the barks are

quieting down – Exhibit 3.

• So when cash comes knocking and long duration gets knocked down, as were yesterday’s key inflection points in bondland, we see it as

an opportunity to own long duration as we expect performance to come both via the trend, and the volatility – Exhibit 4.

Exhibit 1: US Short-Term Bond TRI vs S&P 500 TRI Exhibit 2: US Short-Term Bond TRI vs. Barclays US Treasury Index

Exhibit 3: US Inflation Linked Bond Yield (All Maturities) Exhibit 4: Long Duration vs Barclays US Treasuries (Spectrum in Insert)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

December 3, 2019

Trends & Inflection Points

08:30 ET | 08:30 ET˜13

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Charge

• We are keeping with Friday’s shopping theme, yet moving to the

micro level. A subindustry, which has been positive and at worst

neutral for years, is Data Processing & Outsourced Services, the home

of bellwethers Visa & MasterCard. These two large stocks dominate

the market-cap weighted trends: 1) the relative is just exiting a

correction phase, and 2) the absolute price chart is exiting a

consolidation pattern – Exhibits 1, 2.

o Our positive relative strength breadth reading is more a function of the SMID

stocks in the group, which provide opportunity for the momentum investor

and the bottom fisher alike – Exhibit 3.

Exhibit 1: Data Processing & …(in Reality, V & MA) vs S&P 1500 Exhibit 2: S&P 1500 Data Processing Outsourced Services Price Trend

Exhibit 3: Data Processing Outsourced Services Stocks vs ACWI (vs S&P 500 Here, Price Trends Here)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

December 2, 2019

Trends & Inflection Points

08:00 ET | 08:00 ET˜14

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Holiday Shopping Simplified

• Simple message, eh? – Exhibits 1, 2.

• You’re welcome .

Exhibit 1: MSCI North America vs MSCI World Exhibit 2: MSCI Regions vs MSCI World (in USD)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 29, 2019

Trends & Inflection Points

08:26 ET | 08:26 ET˜15

Quantitative/Technical

Mark Steele Analyst

mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Canadian Thanksgiving Dessert

• Once again, serving humble pie – Exhibits 1, 2.

o This is why Canadians need to invest capital abroad, in

different countries, and sectors – Exhibits 3, 4.

Give me my release, come on

30 Days in the Hole - Humble Pie

Exhibit 1: S&P/TSX 60 vs MSCI World (in USD) Exhibit 2: S&P/TSX 60 vs S&P 500 (in USD)

Exhibit 3: Outperforming Regional & Style Indices vs S&P/TSX Exhibit 4: Outperforming Sector & Industry ETFs vs S&P/TSX

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 28, 2019

Trends & Inflection Points

07:48 ET | 07:48 ET˜16

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Alice’s Restaurant

• As you step up to your Thanksgiving capital markets menu, are you

more likely to choose THIS at the top of a channel, expecting

acceleration, or a consolidation in time, not price? – Exhibit 1

• Or would you rather choose THAT consolidation pattern, willing to

bide time before a, hopefully (looking here & there for the signaling),

upside breakout in the direction of the major trend? – Exhibit 2

o If you prefer THAT, which is the Barclays US Treasury Index, over THIS, which is

the S&P 500, then you are more likely to bottom fish amongst stocks HERE

(real estate and utility stocks in outperforming trends, many of which are at

lows), and trim/sell THERE (financials in underperforming trends, many of

which are at highs) – Exhibits 3, 4.

Or you may be in a similar situation, and if you're in a situation like that, there's only one thing you can do

Arlo Guthrie

Exhibit 1: THIS Exhibit 2: THAT

Exhibit 3: HERE Exhibit 4: THERE

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 27, 2019

Trends & Inflection Points

07:50 ET | 07:50 ET˜17

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Reality, Let It Slide

• This is why we create tables and tables of time series! Most US real

rates series are at 4-6w lows, and below falling 50d MAs. All are in

messy downtrends and are below falling 200d MAs. US real rates

are fading away – Exhibit 1.

o And yes, in a disinflationary environment, this fade from

the threat of rising real rates, which was the key market

element forcing the pullback in “long duration” assets such as real estate,

utilities, and gold, is a call to end the pause/pullback – Exhibit 2.

o Gold stocks too – Exhibit 3.

We believe these signals (Exhibit 1) and the edge that they seem to

have on bullion (Exhibit 2), make it an opportune good time to focus on gold outperformers, and add – Exhibit 4.

It comes down to reality and it's fine with me 'cause I've let it slide

Billy Joel

Exhibit 1: US 10y Real Rate (Other US Real Rates in Insert) Exhibit 2: US 10y Real Rate, Gold, Rolling 30d Correlation of Returns

Exhibit 3: Gold Stocks vs ACWI Exhibit 4: Gold Momentum Buys vs ACWI & ACWI Materials

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit Note: BMO Capital Markets is Restricted on DGC.

November 26, 2019

Trends & Inflection Points

08:16 ET | 08:16 ET˜18

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

The Expurgated Capitulation Filter

• With many equity indices still near the tops of channels (Exhibit 1),

and with implied volatility (a gauge we use for counterparty risk)

very depressed (Exhibit 2), it’s hard to look for fresh, opportune

buying opportunities at the macro level.

o So it’s a good time to delve into the micro details to find

opportunity. Our capitulation filters do just that.

o Our favourite of this set is “oversold with wide Bollinger bands), as volatility is

mean reverting. With resources still in the weakest strength and momentum

quadrant, we give you the expurgated version – Exhibit 3.

There you are! NO gannets, NO robins, NO nuthatches, THERE's your book!

John Cleese, the Bookshop Sketch

Exhibit 1: MSCI World Exhibit 2: Average Stock, Bond and Commodity Implied Volatility

Exhibit 3: Largest 15 Global Oversold, Non-Resource Stocks with Wide Bollinger Bands (Full List Here, North American Listed Stocks Here)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 25, 2019

Trends & Inflection Points

08:30 ET | 08:30 ET˜19

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

The Outperforming Financials

• Going to our equal-breadth relative strength report to see what the

market is rewarding or rejecting, we note that technology, health

care, and industrials are most favored, energy continues to be most

disregarded, while the remaining sectors are grouped in the neutral

zone.

o We covered a few times the current best and worst sectors

of the relative strength spectrum, so we’ll have a closer look at Financials

which stands right in the middle. After spending most of the past year on the

negative side of neutral or worse, the group started to recover from a low in

early September to just above the zero mark – Exhibit 1.

• To find out the distribution of outperformers and underperformers, we descend to the subindustry level where there are five groups

garnering top 3 deciles and four groups bottom 3 deciles – Exhibit 2.

• Since we already wrote about banks, the largest group on the weak side, we’ll look at the outperformers and select for your

consideration the financial stocks in the best groups that are outperforming both the market and sector – Exhibit 3

Exhibit 1: Global Relative Strength Sector Heat Map (FN in Insert) Exhibit 2: Financials Subindustry Relative Strength Breadth Heat Map

Exhibit 3: Largest 15 Global Financial Stocks in Strong Subindustry Outperforming ACWI & Financials With RSI < 70 (Full List)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 22, 2019

Trends & Inflection Points

09:37 ET | 09:37 ET˜20

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Trimming Candidates

• Yesterday, major indices paused the fantastic string of gains that

started in early October. Looking at the macro picture, we see that

the conditions of the current “rental” regime haven’t changed much

since we last detailed them:

o Our preferred gauge of inflation expectations remains

depressed – Exhibit 1

o Most real rates continue to consolidate at the same level as when we penned

our “Readjustment Blues” – Exhibit 2.

o The CRB raw industrials has failed to break above its downtrend and remains

near a multi-year low – Exhibit 3.

• Going to the micro level, with the number of overbought stocks in our entire universe (more than 5000) outnumbering almost 4:1 the

oversold names, we realize that certain names would be excessively overbought and therefore could make good trimming candidates.

We selected those that were lauded above consistent uptrends and RSI level above 70 - Exhibit 4.

Exhibit 1: US 5y5y Forward Breakeven Rate (Inflation Expectation) Exhibit 2: Universal Infl. Linked Bond Yield (Real Rate) All Maturities

Exhibit 3: CRB Raw Industrials Exhibit 4: Largest 15 Global Stocks Above Consistent Uptrends and Overbought on RSI (Full List)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 21, 2019

Trends & Inflection Points

10:00 ET | 10:00 ET˜21

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Canadian Opportunities

• As the Canadian market has continued to mint new highs, we turn

our attention to the Canadian manager who needs to surpass the

S&P/TSX.

• For trend-following opportunities, we selected the most consistent

outperformers that are not overbought. Our filters identified 28

momentum buys - Exhibit 1.

• For bottom-fishing opportunities, we highlight the 18 names that severed their

underperforming trends with the caveat that about half of them are overbought –

Exhibit 2.

Exhibit 1: Largest 15 Momentum Buys vs. S&P/TSX (Full List)

Exhibit 2: Largest 15 Severed Market Underperformers (Full List)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit Note: BMO Capital Markets is Restricted on AC, TSGI

November 20, 2019

Trends & Inflection Points

09:44 ET | 09:44 ET˜22

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

The Weak Side

• With many major indices at or near record or multi-year highs, we

decided to turn to our collection of long/short filters, take a look at

the weak side and highlight some of the stocks that are not

participating in the current rally. We settled upon the collection of

names in weak subindustries that sport consistent negative trends of

at least six months in duration, which are below falling short-term

and long-term moving averages and not oversold. We show the largest global such

stocks (North American stocks here) in Exhibit 1.

Exhibit 1: Largest 25 Global Momentum Sells in Weak Subindustries (Full List)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 19, 2019

Trends & Inflection Points

09:18 ET | 09:18 ET˜23

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

North American Growth Momentum Buys

• On Friday, all major growth vs value ratios that we track rose and

finished at their highest levels in 1-2.5 months. In addition, we note

that all crossed above their 50d moving averages, which turned

negative after the sharp pullbacks of late August/early September –

Exhibit 1

• Going beyond the last month of consolidation, we notice that major

trends remain positive and that recent performances have started to rebound from the

lower end of channels - Exhibit 2.

• Last month, we looked at index levels and highlighted the outperformance potential of

Russell 1000 technology growth against value, then remarked favorably on the positive

breakout of Russell 2000 Growth. We now move to the micro level and give you the list of North American momentum buys with an

earnings growth filter applied – Exhibit 3.

Exhibit 1: Global Growth vs. Value Indices Exhibit 2: ACWI Growth vs. Value

Exhibit 3: Largest 15 North American Momentum Buys vs ACWI, with an Earnings Growth Filter Applied (Full List)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 18, 2019

Trends & Inflection Points

10:10 ET | 10:10 ET˜24

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

The Picture of Health Care

• After spending most of the preceding year in positive territory our

breadth reading for health care started to pull back and turned to the

negative side of neutral or worse in January as the most numerous

groups in the space, pharma, and biotech, weakened to the lowest

deciles. Lately, though, the sector started to rebound after minting a

nine-year low in October and is now approaching zero again – Exhibit 1.

• Going to the subindustry level, we see a mixed picture with equipment and services

leading the upside side, biotech improving towards neutral yet still weak and pharma

leading the downside – Exhibit 2.

• We’ll follow the mixed picture and offer for your consideration two lists:

o Top 3 decile stocks outperforming ACWI and Health Care – Exhibit 3

o Pharma and Biotech stocks underperforming ACWI and Health Care – Exhibit 4

Exhibit 1: Health Care Relative Strength Breadth Z-Score Exhibit 2: Health Care Subindustry Relative Strength Breadth Map

Exhibit 3: Largest 15 Top Health Care Subindustries Outperforming ACWI and Sector (Full List)

Exhibit 4: Largest 15 Biotech & Pharma Underperforming ACWI and Health Care (Full List)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 15, 2019

Trends & Inflection Points

09:42 ET | 09:42 ET˜25

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

The Overextended Set

• Many world equity indices have minted record or multi year highs –

Exhibit 1.

• The recent strength has lifted many stocks in weak subindustries, so

we think there could be some profit-taking opportunities among the

overextended names in these groups. To get the set we parsed our

universe for stocks sporting a negative trend and an RSI above 60 –

Exhibit 2.

Exhibit 1: World Equity Benchmarks Exhibit 2: Largest 25 Global Listed Downtrends With RSI > 60 (Full List)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 14, 2019

Trends & Inflection Points

09:58 ET | 09:58 ET˜26

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

North American Real Estate Momentum Buys

• Real estate, part of our long-duration trio, has taken a step back and

retreated to the neutral zone in our equal-weighted relative strength

work. We don’t see from here a shift into the negative as in Q1 2018.

--- Exhibit 1

• Yesterday, the MSCI US REIT index severed its upward trend and

reached a 2.5m low after rather an abrupt pullback that took the

space to oversold levels --- Exhibit 2.

• As we have noted before, we would wait before fully re-owning the long duration

strategy until perhaps we see bond implied volatility show signs of panic. The MOVE

index started to rise from a 3m low yet it hasn’t reached panicky levels. Therefore we

won’t start bottom-fishing in the space, instead will highlight the names whose positive momentum remains intact --- Exhibit 3.

Exhibit 1: Real Estate Relative Strength Breadth Z-Score Exhibit 2: MSCI US REIT Index

Exhibit 3: Largest 15 North American Listed Real Estate Momentum Buys vs. ACWI (Full List Here)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 13, 2019

Trends & Inflection Points

10:07 ET | 10:07 ET˜27

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Inflection Points

• The macro environment remains consistent with our recent notes

where we highlighted the current “rental period” as real rates go

through a “readjustment blues”. We continue to look for

opportunities while keeping an eye on the bondland.

• Moving to the micro level, we use our suite of long/short sales filters

to carve out some positive inflection points for your consideration.

We focus on stocks with severed downtrends in strong subindustries. Some are

overbought, some are not, yet our system asks the question: are these positive

reversals or trimming candidates? - Exhibit 1

Exhibit 1: Largest 25 Severed Trends in Strong Subindustries – Full List Here, (North American Listed Here)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 12, 2019

Trends & Inflection Points

09:45 ET | 09:45 ET˜28

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Technology Bifurcation

• Drilling into technology at the subindustry levels in our equal-

weighted relative strength breadth report, we notice the separation

between outperformers and underperformers with semiconductors in

the lead and software-related names weakening – Exhibit 1.

• We also notice that the bifurcation happened over the last quarter

when application and system software groups, which have garnered

mostly top rankings for more than a year, started to weaken and reached the worst

levels – Exhibit 2.

o We carved out a list of global severed outperformers where the subindustry is

in the bottom 3 deciles for trimming/underweighting – Exhibit 3.

• For trend followers looking for additions, we highlight the list of momentum buys in the top 3 deciles – Exhibit 4.

Exhibit 1: Technology Relative Strength Breadth Heat Map Exhibit 2: Application Software Relative Strength Decile

Exhibit 3: Largest 15 Severed Outperforming Trends vs. ACWI (Full List) Exhibit 4: Largest 15 Momentum Buys vs. ACWI (Full List Here)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 11, 2019

Trends & Inflection Points

09:17 ET | 09:17 ET˜29

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Tune In, Tune Out

• You can’t say we are perma energy bears, albeit in aggregate, that is

the market call.

o We do like refiners, and that’s still working.

o Yet when E&P steps right up to the plate, asking us to

consider buying, our breadth work tells us instead that no,

it’s the contrary: it’s an opportunity to sell – Exhibits 1, 2.

• Where are the bids to sell into?

o We highlight E&P stocks still in dividend-adjusted price downtrends, and tuned

the RSI up to 60 – Exhibit 3.

Tune in, tune out dampen it down, take off your crown and go

CUT_

Exhibit 1: S&P 500 E&P Producers Exhibit 2: Energy SubIndustry Relative Strength Breadth Heat Map

Exhibit 3: E&P Selling Opportunities: Stocks in Downtrends With RSI > 60

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 8, 2019

Trends & Inflection Points

08:14 ET | 08:14 ET˜30

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Chemistry

• Within this “rental period” of some cyclical strength / long duration

weakness (sans inflation, as Mark Carney just mentioned), we’ve

delved into a number of industrials, but in materials, we’ve only

highlighted the strength of forestry. That’s a pretty niche industry,

with not enough capitalization to rotate materially into. The other

inflection point in materials, which just came to fruition in the past

week, is chemicals – Exhibit 1.

o If we parse chemicals at a granular level, using our relative strength breadth

work, it’s really chemicals ex fertilizers that is under consideration for long

positioning – Exhibit 2.

Going more granular still, we parse the outperformers and rotate in candidates – Exhibit 3.

Exhibit 1: Chemicals vs MSCI Wrld (Other Materials vs. MXWO in Insert) Exhibit 2: Materials Relative Strength Heat Map - SubIndustry Level

Exhibit 3: Largest 100 Chemicals (ex Fertilizers) vs ACWI (NAmer Listed vs S&P 500 Here, SmallCaps vs Russell 2000 Here)

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 7, 2019

Trends & Inflection Points

08:18 ET | 08:18 ET˜31

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Rent

• Being trained in chemistry, we never went to portfolio management

school, so what we learned, we learned from fantastic conversations

over the many years with those in the field. We doubt they too

learned much in the classroom, but one of our favourite portfolio

management concepts in their toolkit is “rent.” That is, positions you

own temporarily, as the core thesis goes on hold for a time.

• You can see we’ve incorporated “rent” over the past month, not abandoning our “long

duration strategy” as we continue to refer to it, but also telling clients that we’d be

sellers of utilities, not wanting to extrapolate uber steep trajectories, and considering

gold to be “taking a break.” On the flip side, we’ve recommended some cyclicals, but

not the sort of cyclicals that we want to be all over in capitulation type of environment, like “all the right junk in all the right places.”

• If you look at the LME basket, you see our system sez the trend slope is zero, and pattern wise, there is a minor H&S bottom, which can

take you back to the April high. It could be a nice short-term trade. We certainly would not want to be short. But, on the other hand, we

put more importance on the CRB Raw Industrials, which does not afford the same optimism, so a trade here would be a rental – Exhibit 1.

o Still, if you did want to buy steel and base metals stocks, and given we think it should be short-term rental if you did, we would

suggest sticking with the large-cap outperformers. When we carve out that list, we are reminded that our group selection report

ranking still sez yuck, and that from a timing basis, this is not the right time as the outperformers are overbought – Exhibit 2.

• When does one ditch the rent, and start re-owning the long duration strategy with vigor? Perhaps when bond implied volatility shows

panic (Exhibit 2) and when our list of oversold bonds grows a bit more than the present – Exhibit 4.

I blew the candle out just to get back in

I should tell you, from the Musical Rent

Exhibit 1: LME Basket & CRB Raw Industrials in Insert Exhibit 2: Largest 10 Base Metal & Steel Outperformers

Exhibit 3: US Treasury (10Yr) Bond Future Implied Volatility Exhibit 4: List of Oversold Bond ETFs

This Space Intentionally Left

BlankSource: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 6, 2019

Trends & Inflection Points

08:40 ET | 08:40 ET˜32

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

More Industrials

• Our daily checklist involves looking at what the market is

rewarding/rejecting relative to what we recommend as

over/underweights and adjust where we see good evidence for

where we need to add/trim – Exhibit 1.

• We started bottom fishing in cyclicals with Autos, almost three weeks

ago, then recommended rails, and more industrials later in the

month, and we continue to see the merit in adding here – Exhibit 2.

• One heavily populated group, full of US Small Caps (see yesterday’s recommendation) is

industrial machinery. If you want to see what rotation in looks like at the micro level,

look no further – Exhibit 3.

It's new, it's improved, it's old-fashioned well it takes care of business, never needs winding, never needs winding, never needs winding

Step Right Up, Tom Waits

Exhibit 1: Global Relative Strength Sector Heat Map Exhibit 2: Industrials vs World (Top); Industrials RS Breadth (Bottom)

Exhibit 3: North American Listed Industrial Machinery vs S&P 500

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 5, 2019

Trends & Inflection Points

08:16 ET | 08:16 ET˜33

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Consider US Small Cap Growth Now

• It’s too early to declare a relative bottom, but the seeds of a

bottoming process are starting to form, and on Friday, Russell 2000

broke above an underperforming trend vs. the 500 again – Exhibit 1.

• At the sector level, there are signs of pulling out of consolidation

patterns for all but the ultra-shunned energy sector – Exhibit 2.

• If you want to bottom fish within the bottom fish, we would point

you to US small cap growth which, despite the past 50d, remains in a long-term

outperforming trend vs. value, in line with other growth vs. value ratios – Exhibit 3.

o The Russell 2000 Growth Index shows just a wafer thin separation between a

9m holding pattern and a breakout, so you look now, at the pre-breakout

setup, before the index, or ETF becomes overbought – Exhibit 4.

Exhibit 1: Russell 2000 vs. S&P 500 Exhibit 2: Russell 2000 and Sector Price Trends

Exhibit 3: Russell 2000 Growth vs. Value (Other G/V Ratios in Insert) Exhibit 4: Russell 2000 Growth Index

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 4, 2019

Trends & Inflection Points

08:14 ET | 08:14 ET˜34

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Double Vision

• What would you do with this – Exhibit 1?

• What do you think about that – Exhibit 2?

o If you think you are having a Yogi Berra moment (déjà vu all over again), you are right. We used this to make our call

that we saw the worst was over for treasuries Wednesday.

• Now let’s line them up – Exhibit 3.

o And then look at the underperforming banks we think you should be selling –

Exhibit 4.

Ooh, when it gets through to me, it's always new to me

Double Vision, Foreigner

Exhibit 1: Banks vs MSCI World Exhibit 2: BBG Barclays Universal TIPs Yield (All Maturities)

Exhibit 3: Gbl TIPs Yield, Global Banks RS, Rolling 30d Fit of Returns Exhibit 4: Largest 15 Underperforming Banks vs ACWI with an RSI > 50

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit

November 1, 2019

Trends & Inflection Points

07:00 ET | 07:00 ET˜35

Quantitative/Technical

Mark Steele Analyst

mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita Associate tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng Associate david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Trainspotting

• It’s the question that drives us. Once the answer is fully known we expect asset prices

could be rather different. One pays for answers with performance.

• US bank CDS hit a low on Friday September 13, and started pivoting higher (and

remains near a 7w wide) when the US O/N repo rate surged, causing the FED to start to

open up a spigot of liquidity to fix some sort of “plumbing problem”.

• We’ve always pointed to the 2017-2018 transition from low to high volatility (which is

intimately related to counterparty risk), as a new era. In hindsight, we now expect that

the transition was related to the reduction of the FED balance sheet, which has now been forced to expand quite aggressively. We might

as well label the start of FED balance sheet expansion, as the second leg of this train ride, where volatility and bank risk are passengers.

• The questions are: (1) What is the counterparty, whose lust for life is causing such an expansion in US central bank reserves? (2) Is this

inducing the largest spike in counterparty risk since the December-January period? (3) Will it end in a train wreck?

All on a Government Loan

Lust for Life, Iggy Pop

Source: All charts/tables BMO Capital Markets, Bloomberg

October 10, 2019

Focal Points

Exhibit 1: US Bank CDS; US Overnight Repo Rate; US Federal Reserve Balance Sheet; Average Stocks, Bond and Commodity Volatility

02:44 ET | 02:44 ET˜36

Quantitative/Technical

Mark Steele Analyst mark.steele@bmo.com (416) 359-4641

Tiberiu Stoichita Associate tiberiu.stoichita@bmo.com (416) 359-4684

David Cheng Associate david.cheng@bmo.com (416) 359-7383

Legal Entity: BMO Nesbitt Burns Inc.

Blue Drag

• We had a tough time deciding on the lyrics to this note, but came up with a cool

depression era tune, Blue Drag. It’s a note about yield curves, and central banks,

and inflation, and globalization, and all the mystery about how economies in North

America, being so good, can dish out recession signals seeming to indicate that it’s

really so bad. The “seeming” bit is incorrect, yet it will become important.

• The US yield curve inverted last week (a few months behind Canada), and will

continue to trend towards inversion. Why? Because the US economy is so strong.

Say what??

o Think like a chemist, and break the yield curve into its two market elements, (1) where the FED will be in two years, and (2) why own

the 10-year bond?

The FED rate will be lower in two years. That’s what the market tells the FED. But the FED is sticky, because things are so good,

and, importantly, the FED does not want to fight an asset bubble (a great president resides here). Very true.

The long end rallies and this is the key part, which is how the yield curve inverts, because there is not enough global economic

growth to sustain the pricing of basic commodities, and thus inflation expectations. Inflation expectations fall, and so does the

fear of owning the long end of the curve, so it’s bought because that’s where the leverage is.

• Oh yeah, and banks do poorly in this environment. That blue line drags the black one down. That’s been the case

since the last great recession – Exhibit 1.

o Why? Because the inversion will induce a bank profitability recession. Ultimately, this could tighten up

conditions as banks tighten credit to remain profitable.

Or central banks can just continue to ease and not fight this holy Armageddon.

Oh, the rhythm, the rhythm has got me into this mysterious craze

Blue Drag, Josef Myrow 1932

Exhibit 1: Relative Strength of Global Banks vs. MSCI World, US 5y5y Inflation Expectations, Rolling 30w Correlation of Returns

Source: All charts/tables BMO Capital Markets, Bloomberg

August 20, 2019

Focal Points

09:56 ET | 09:56 ET˜37

IMPORTANT DISCLOSURES

Analyst's Certification

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

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

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. Theseanalysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions oncommunications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosures

For Important Disclosures on the stocks discussed in this report, please go to https://researchglobal0.bmocapitalmarkets.com/public-disclosure/.

ETF Related Disclosures

As an authorized participant or otherwise, BMO Capital Markets acquires securities from the issuers for the purposes of resale. BMO CapitalMarkets and its affiliates seek to provide brokerage services to, and do other business with, ETFs covered by this report. BMO Capital Marketsand its affiliates seek to enter into securities and other transactions on a principal basis with, and may borrow securities from, ETFs covered bythis report. BMO Capital Markets makes a market in this security.

The BMO ETFs issue, or will issue, Units directly to Designated Brokers and Underwriters. The initial issuance of Units of a BMO ETF will not occuruntil it has received, in aggregate, subscriptions sufficient to satisfy the TSX’s original listing requirements. BMO Nesbitt Burns Inc., an affiliateof the Manager, will act as a Designated Broker for the BMO ETFs. Units of each of the BMO ETFs are issued and sold on a continuous basis andthere is no maximum number of units that may be issued. BMO Asset Management is the trustee, manager, portfolio manager, promoter andvaluation agent of the BMO ETFs and is responsible for the administration of the BMO ETFs. Unitholders may redeem Units for cash, subject to aredemption discount. Unitholders may also exchange a Prescribed Number of Units (or integral multiple thereof) for Baskets of Securities of theConstituent Issuers held by each BMO ETF and cash, or, with respect to certain BMO ETFs, cash only.

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Investors should consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. Theprospectus for the ETF contains this and other information about the investment company and should be read carefully before investing. Clientsmay obtain prospectuses for the ETFs mentioned in this report from the ETF distributor or the exchange upon which it is listed. This report is nota prospectus or an offer to buy or sell any security, or to participate in any trading strategy.

For a complete list of ETFs mentioned in this report, please contact the research analyst directly.

Investors in ETFs with international securities may assume currency and political risk.Sector and commodity specific ETFs are not diversified and may focus their investments entirely in a single sector, commodity, or basket ofcommodities. As a result, the ETFs will involve a greater degree of risk than an investment in other diversified fund types.ETFs designed to track an index or asset may experience a discrepancy between the ETF’s performance and the performance of its target indexknown as tracking error. A variety of factors can create a performance gap between ETF and its target index such as the impact of transactionfees and expenses incurred by the ETF, changes in composition of the underlying index/assets, the ETF portfolio manager’s replication strategyand sampling techniques, and the timing of purchases and redemptions of ETF’s shares. Inverse and Leveraged ETFs: Most leveraged ETFs seekto provide a multiple of the investment returns of a given index or benchmark on a daily basis.Inverse ETFs seek to provide the opposite of the investment returns, also daily, of a given index or benchmark, either in whole or by multiples.Due to the effects of compounding and possible correlation errors, leveraged and inverse ETFs may experience greater losses than one wouldordinarily expect.

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Distribution of Ratings (December 05, 2019)

Rating category BMO rating BMOCM USUniverse*

BMOCM US IBClients**

BMOCM US IBClients***

BMOCMUniverse****

BMOCM IBClients*****

StarMineUniverse~

Buy Outperform 45.7 % 23.8 % 56.3 % 48.0 % 58.2 % 57.7%

Hold Market Perform 50.2 % 16.0 % 41.8 % 48.7 % 41.0 % 37.5%

Sell Underperform 4.1 % 9.1 % 1.9 % 3.2 % 0.8 % 4.8%

* Reflects rating distribution of all companies covered by BMO Capital Markets Corp. equity research analysts.** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking servicesas percentage within ratings category.*** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Bankingservices as percentage of Investment Banking clients.**** Reflects rating distribution of all companies covered by BMO Capital Markets equity research analysts.***** Reflects rating distribution of all companies from which BMO Capital Markets has received compensation for Investment Banking servicesas percentage of Investment Banking clients.~ As of April 1, 2019.

Ratings Key (as of October 2016)

We use the following ratings system definitions:OP = Outperform - Forecast to outperform the analyst’s coverage universe on a total return basis;Mkt = Market Perform - Forecast to perform roughly in line with the analyst’s coverage universe on a total return basis;Und = Underperform - Forecast to underperform the analyst’s coverage universe on a total return basis;(S) = Speculative investment;Spd = Suspended - Coverage and rating suspended until coverage is reinstated;NR = No Rated - No rating at this time; andR = Restricted - Dissemination of research is currently restricted.

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

Prior BMO Capital Markets Rating System

(April 2013 - October 2016)http://researchglobal.bmocapitalmarkets.com/documents/2013/rating_key_2013_to_2016.pdf

(January 2010 - April 2013)http://researchglobal.bmocapitalmarkets.com/documents/2013/prior_rating_system.pdf

Other Important Disclosures

For Important Disclosures on the stocks discussed in this report, please go to https://researchglobal0.bmocapitalmarkets.com/public-disclosure/or write to Editorial Department, BMO Capital Markets, 3 Times Square, New York, NY 10036 or Editorial Department, BMO Capital Markets, 1First Canadian Place, Toronto, Ontario, M5X 1H3.

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~ Research distribution and approval times are provided on the cover of each report. Times are approximations as system and distributionprocesses are not exact and can vary based on the sender and recipients’ services. Unless otherwise noted, times are Eastern Standard andwhen two times are provided, the approval time precedes the distribution time.

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For recommendations disseminated during the preceding 12-month period, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/.

General Disclaimer

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"BMO Capital Markets" is a trade name used by the BMO Investment Banking Group, which includes the wholesale arm of Bank of Montrealand its subsidiaries BMO Nesbitt Burns Inc., BMO Capital Markets Limited in the U.K., Bank of Montreal Europe Plc in Ireland and BMO CapitalMarkets Corp. in the U.S. BMO Nesbitt Burns Inc., BMO Capital Markets Limited, Bank of Montreal Europe Plc and BMO Capital Markets Corp areaffiliates. Bank of Montreal or its subsidiaries ("BMO Financial Group") has lending arrangements with, or provide other remunerated servicesto, many issuers covered by BMO Capital Markets. The opinions, estimates and projections contained in this report are those of BMO CapitalMarkets as of the date of this report and are subject to change without notice. BMO Capital Markets endeavours to ensure that the contentshave been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and complete.However, BMO Capital Markets makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for anyerrors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or itscontents. Information may be available to BMO Capital Markets or its affiliates that is not reflected in this report. The information in this reportis not intended to be used as the primary basis of investment decisions, and because of individual client objectives, should not be construedas advice designed to meet the particular investment needs of any investor. Nothing herein constitutes any investment, legal, tax or otheradvice nor is it to be relied on in any investment or decision. If you are in doubt about any of the contents of this document, the reader shouldobtain independent professional advice. This material is for information purposes only and is not an offer to sell or the solicitation of an offerto buy any security. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report ona principal basis. BMO Capital Markets or its affiliates, officers, directors or employees have a long or short position in many of the securitiesdiscussed herein, related securities or in options, futures or other derivative instruments based thereon. The reader should assume that BMOCapital Markets or its affiliates may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy orsell securities of issuers discussed herein.

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