August 29, 2017 Quantitative/Technical Package

Market Elements Page August 28, 2017 NEW Market Elements 2

Trends & Inflection Points August 29, 2017 NEW The Shift Into Golds 11 August 28, 2017 The NASDAQ Break & Parsing the Internet 12 August 25, 2017 Synchronicity II 13 August 24, 2017 Canadian Peer Review 14 August 23, 2017 The Slide of Industrial Breadth 15 August 22, 2017 The Red SOX 16 August 21, 2017 Lost in the Flood 17 August 18, 2017 Fingerprint of a US Political Bank Run 18 August 17, 2017 Discretionary Disasters 19 August 16, 2017 US Discretionary Breaks Lower 20 August 15, 2017 Because Volatility is Mean Reverting 21 August 14, 2017 Mining : Where 13 > 29 22 August 11, 2017 More Meaningful Than Covfefe 23 August 10, 2017 Staples as Credit Risk Inflects Higher 24 August 9, 2017 Utilities Already Set Up For Reward 25 August 8, 2017 The Retrenchment of Pharma 26 August 4, 2017 Channeling Otis 27 August 3, 2017 Utilities - One of My Turns 28 August 2, 2017 Canadian Momentum Buys 29 August 1, 2017 Growth vs Value – Another Break in the Wall 30 July 31, 2017 These Eyes Have Seen a Lot of Loves 31 July 28, 2017 Time to Roam Around 32 July 27, 2017 US Treasuries: Base Case & The Oil Hedge 33 July 26, 2017 Energy, Reflation Trade, SMID, and More Energy 34

Focal Points May 7, 2017 Quiet 35 April 23, 2017 Tut-Tut, it Looks Like Rein 36 April 16, 2017 The Wisdom of Sweet Brown 37 March 19, 2017 Treasury Bear? You Have Been Soft Served 38

~08:36 ET 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 39 to 41. August 28, 2017

Market Elements

 Equity indices ended mixed to slightly lower, with European bourses falling the most, Quantitative/Technical as they caught up with the surging euro, and golds rising 3%, the best day in 2.5mo; major U.S. and global indices traded in very narrow ranges; global sector moves were Mark Steele Analyst [email protected] (416) 359-4641 also slight ± 50bps with HC and utilities leading gainers, and financials the losers. Tiberiu Stoichita  Major 10y yields were flat to 1bps lower, holding near 4m lows; U.S. inflation [email protected] (416) 359-4684 expectations also held near their lows; U.S. yield curves were mixed; corporate credit David Cheng risk indices narrowed slightly. [email protected] (416) 359-7383  Most majors extended Friday’s gains against the greenback; NAFTA currencies fell Legal Entity: BMO Nesbitt Burns Inc. with the Mexican peso losing 1.4%, breaking back below its 50d MA, and the loonie Quantitative/Technical Research Website pulled back from a 3w high; the yen was little changed.  WTI fell 2.5%, breaking below its 50d MA, and gasoline surged 3.4% on Harvey; copper extended gains; gold broke above $1,300, ending at a 10w high.

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 %Chg BBDXY L 1,149 -0.1% BB Cmdty l 83.42 0.2% U.S. 2.16 -0.01 MSCI World  1,947 0.1% XBT  4,340 0.2% WTI Oil l 46.68 -2.5% Canada  1.87 -0.00 MSCI EM  1,085 -0.0% EUR H 1.1976 0.4% NMX Gas l 2.92 1.1% U.K. 1.05 0.00 S&P 500  2,444 0.0% CHF  1.0470 0.1% Gold  1,310.5 1.5% Germany 0.38 -0.00 S&P/TSX l 15,052 -0.0% GBP  1.2930 0.4% Silver 17.45 2.2% France 0.69 -0.00 STOXX 50  3,421 -0.5% JPYx10 l 0.0915 0.0% Platinum 988.6 1.3% Italy 2.08 -0.02 FTSE 100  7,401 0.0% CAD  0.8000 -0.1% Palladium  937.36 1.0% Spain 1.60 -0.01 Hang Seng H 27,863 0.1% AUD  0.7964 0.4% CMX Cu H 309.00 1.1% Portugal l 2.86 -0.01 Topix  1,600 0.2% BRL  0.3161 -0.2% LME Al 3m  0.94 0.0% Switzerland (0.14) -0.02 S&P/ASX  5,710 -0.6% MXNx10  0.5597 -1.4% LME Ni 3m  5.21 0.0% Australia 2.66 0.02 CSI 300 H 3,843 1.2% ZAR  0.0767 -0.1% LME Zn 3m  1.39 0.0% Hong Kong 1.59 -0.02 CDX IG 5Yr l 59.5 -0.9% KRWx10  0.8938 0.2% Lumber  379.40 2.0% China  3.69 0.02 ARMS 1.4 33.7% CNH H 0.1511 0.4% Corn L 351.00 -0.7% Japan 0.01 -0.01 VIX 11.3 0.4% Moves Currencies (spot) Commodities Government 10-Yr Benchmark Equity Indices EUR Silver Hong Kong CSI 300

AUD Lumber Italy Topix CNH Gold Switzerland MSCI World Platinum Portugal GBP NMX Gas Spain Hang Seng XBT CMX Cu Japan KRW S&P 500 Palladium U.S. CHF FTSE 100 BB Cmdty Germany JPY LME Al 3m Canada MSCI EM ZAR LME Ni 3m France S&P/TSX CAD LME Zn 3m U.K. STOXX 50 BRL Corn China

MXN WTI Oil Australia S&P/ASX

2.0% 1.5% 1.0% 0.5% 0.0% 0.5% 1.0% 3.0% 2.0% 1.0% 0.0% 1.0% 2.0% 3.0% 0.03 0.02 0.01 0.00 -0.01 -0.02 -0.03 1.0% 0.5% 0.0% 0.5% 1.0% 1.5% Sectors MSCI World S&P Europe 350 S&P 500 S&P/TSX Composite Hlth Care Real Estate Hlth Care Materials Utilities Utilities Info Tech Info Tech Materials Telecom Materials Telecom Info Tech Cons Disc Utilities Industrials Telecom Energy Cons Disc Hlth Care Cons Disc Info Tech Industrials Real Estate Industrials Financials Telecom Utilities Cons Stap Hlth Care Cons Stap Cons Stap Real Estate Cons Stap Real Estate Financials Energy Industrials Energy Cons Disc Financials Materials Financials Energy

0.4% 0.2% 0.0% 0.2% 0.4% 0.6% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 0.2% 0.6% 0.4% 0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 2.0% 1.0% 0.0% 1.0% 2.0% 3.0%

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 2 17:56 ET | 17:56 ET˜

The News That Drives Markets in a Slow Growth World Central Station (Central Bank & Government Leanings)  Yellen and Draghi had good reason for Jackson Hole reticence; Regulation and free trade, not monetary policy, dominated central bankers’ speeches – FT

 Cohn or Yellen? Bond Managers of $1 Trillion Say Same Difference – BBG

 China seen removing barriers to Xi third term – Nikkei

o Dalian Wanda hit by report chief cannot leave China – FT

 A Surprise Lift From China for U.S. Steel; reduced overcapacity lifting prices – WSJ Crude Realities (Disruptive Change, Like Rates, Shale & AI, That Impacts Markets)  Amazon slashes Whole Foods prices – Axios

 Banks use secured lending to sidestep retail losses; Lenders insist on safe form of financing for troubled sector – FT

 Ultra-low rates put squeeze on Germany’s small banks – FT

 Canada’s biggest banks stand by resilience of mortgage portfolios – FT

 Houston's Flood-ravaged Residents Are Told the Worst Is Yet to Come – Telegraph

 Insurers and energy companies count the cost of Harvey – FT

 Tencent joins the fray with Baidu in providing artificial intelligence applications for self-driving cars – SCMP Other Voices

 This Thing Called the American Dream (Edmund S. Phelps) – Project Syndicate

 "Hold the line until our country gets back to understanding and respecting each other" – Axios

o Trump Signs Memo Implementing Ban On Transgender People Enlisting In The Military – NPR, Axios

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Market Elements | Page 2 August 28, 2017

The Trump Effect (What Does or Could Impact Financial Markets)

 Trump's cascade of crises – Axios

 Mueller Seeks Grand Jury Testimony from PR Execs Who Worked With Manafort – NBC, Axios , Reuters

 Robert Mueller examining Flynn's role in seeking Clinton emails from hackers: WSJ – Reuters,

 Trump associate (Felix Sater) claimed Putin buy-in on tower deal could 'get Donald elected' – Axios, NYT, WP, Reuters , Axios

Economics

 Trump's Push for Tax Reform – WSJ

 Tensions building between White House, Freedom Caucus on tax reform – Axios

Politics

 How the White House is responding to Cohn's Trump criticism – Axios

 Trump frustration with Tillerson rising fast – Axios

 Counterterrorism Adviser Gorka Out Of White House Job – NPR, Axios

 Bannon on McConnell: "I'm going to light him up" – Axios

Geopolitics

 Trump vents in Oval Office, "I want tariffs. Bring me some tariffs!" – Axios

 Trump renews threat to scrap NAFTA going into next round of talks – Reuters

 Mexico is offering aid for Hurricane Harvey victims in Texas (as they did for Katrina) – Axios

o Trump's evolving plans for the border wall – Axios

o In Trump World, The Brand Is All, And His Brand Includes The Wall – NPR

 There are better ways to boost an economy than going to war – FT

o North Korea launches 3 short-range ballistic missiles – Axios, FT

. Tillerson says U.S. will keep up 'peaceful pressure' on North Korea – Reuters

o Former Deputy Secretary of State Richard Armitage Weighs In On President Trump's Afghan Strategy – NPR

Corporate America

 Wall St’s top bankers sell own groups’ shares as Trump rally reverses; former optimism about economy and policy is fading – FT

Leadership, Humanity, Media

 Trump Pardons Arpaio – NPR, BBC, Axios, FT

o Trump was prepared to pardon Arpaio even before conviction – Axios

. Trump faces chorus of dissent over Arpaio and Charlottesville - FT

 Top Republican Paul Ryan condemns Joe Arpaio pardon – Axios, BBC, Reuters

 McCain denounces Trump's Arpaio pardon – Axios

. Donald Trump’s pardon of Joe Arpaio is an attack on the separation of powers – FT

o Joe Arpaio may challenge Jeff Flake for Arizona Senate seat – WE 4

Market Elements | Page 3 August 28, 2017

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

Currencies Commodities Bonds Equities

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Market Elements | Page 4 August 28, 2017

Intra Day Charts 2-Day 1-Minute View

Currencies Commodities Bonds Equities

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Market Elements | Page 5 August 28, 2017

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

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Market Elements | Page 6 August 28, 2017

Market Movers – Largest Daily Percentage Moves

S&P Global 1200 ex U.S. & CDA S&P 500 S&P/TSX Composite Name Symbol % Chg Name Symbol % Chg Name Symbol % Chg SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Energy Santos Ltd STO AU 2.2% Andeavor ANDV 3.2% Parkland Fuel PKI 1.1% Caltex Australia CTX AU 1.7% Marathon Petroleum MPC 1.5% Peyto Exploration & Development PEY 0.4% Ultrapar Participacoes UGPA3 BZ 0.6% Valero Energy VLO 1.1% Spartan Energy SPE 0.2% Petroleo Brasileiro PBR US -1.0% Helmerich & Payne HP -2.9% TORC Oil & Gas TOG -3.7% OMV AG OMV AV -1.0% Range Resources RRC -3.2% Baytex Energy BTE -4.2% Ecopetrol SA EC US -1.6% Chesapeake Energy CHK -3.7% ShawCor Ltd SCL -5.0% SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Materials Southern Copper SCCO US 2.6% Newmont Mining NEM 3.5% First Majestic Silver FR 7.9% Sumitomo Metal Mining 5713 JP 2.3% Vulcan Materials VMC 2.5% Guyana Goldfields GUY 6.5% Mitsubishi Chemical Holdings 4188 JP 1.7% Martin Marietta Materials MLM 2.5% New Gold Inc NGD 6.0% Svenska Cellulosa AB SCAB SS -3.3% Sealed Air SEE -1.2% Cascades Inc CAS -0.9% UPM-Kymmene UPM FH -4.1% International Paper IP -1.3% Nevsun Resources NSU -1.1% Stora Enso STERV FH -5.2% Mosaic Co MOS -1.5% CCL Industries CCL/B -1.5% SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Industrials Komatsu Ltd 6301 JP 1.4% United Rentals URI 3.2% Toromont Industries TIH 11.1% Marubeni Corp 8002 JP 1.3% CH Robinson Worldwide CHRW 2.9% Finning FTT 5.5% Taisei Corp 1801 JP 1.1% JB Hunt Transport Services JBHT 1.5% Exchange Income EIF 2.7% Jardine Matheson Holdings JM SP -2.2% Alaska Air Group ALK -1.6% ATS Automation Tooling Systems ATA -1.3% Samsung C&T Corp 028260 KS -3.4% Southwest Airlines LUV -1.8% New Flyer Industries NFI -2.2% Qantas Airways QAN AU -5.6% WW Grainger GWW -2.2% Aecon Group ARE -2.3% SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Cons Disc Oriental Land 4661 JP 1.9% Tiffany & Co TIF 1.5% Hudson's Bay HBC 4.7% Michelin ML FP 1.7% Darden Restaurants DRI 1.4% Sleep Country Canada Holdings ZZZ 0.7% Altice NV ATCB NA 1.5% Home Depot Inc HD 1.2% Uni-Select UNS 0.4% Subaru Corp 7270 JP -2.1% O'Reilly Automotive ORLY -2.1% Linamar Corp LNR -1.6% Kroton Educacional KROT3 BZ -2.6% Ulta Beauty ULTA -2.2% Cineplex Inc CGX -1.8% Vivendi SA VIV FP -2.9% Expedia Inc EXPE -4.5% Magna MG -1.9% SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Cons Stap Treasury Wine Estates TWE AU 1.3% Kimberly-Clark KMB 0.7% Loblaw Cos L 0.5% FEMSA FEMSAUBD MM 1.2% Philip Morris PM 0.6% Jean Coutu Group PJC Inc PJC/A 0.4% Kirin Holdings 2503 JP 1.2% JM Smucker Co SJM 0.2% North West Co Inc NWC 0.2% Anheuser-Busch InBev ABI BB -1.4% Molson Coors Brewing TAP -1.7% Premium Brands Holdings PBH -0.6% Wal-Mart de Mexico WALMEX* MM -1.5% Conagra Brands CAG -1.8% Alimentation Couche-Tard ATD/B -0.8% Koninklijke Ahold Delhaize AD NA -2.5% Coty Inc COTY -1.9% Empire Co Ltd EMP/A -1.1% SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Health Care Terumo Corp 4543 JP 2.3% Biogen Inc BIIB 2.5% Valeant Pharmaceuticals VRX 0.8% Shionogi 4507 JP 1.8% Illumina Inc ILMN 2.5% Canopy Growth Corp WEED 0.7% Genmab A/S GEN DC 1.7% Abbott Laboratories ABT 1.8% Chartwell Retirement Residence CSH-U -0.1% Novartis AG NOVN VX -1.0% Laboratory Corp of America Hol LH -1.0% Knight Therapeutics GUD -0.2% Ramsay Health Care RHC AU -1.1% Hologic Inc HOLX -1.1% Extendicare EXE -0.8% Cochlear Ltd COH AU -1.3% Henry Schein HSIC -1.2% Prometic Life Sciences PLI -3.2% SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Financials Medibank Pvt Ltd MPL AU 2.4% Marsh & McLennan Cos MMC 0.6% Element Fleet Management EFN 0.5% Fubon Financial Holding 2881 TT 1.6% S&P Global Inc SPGI 0.5% Alaris Royalty AD 0.4% China Life Insurance 2628 HK 1.2% CBOE Holdings Inc CBOE 0.4% Fairfax Financial Holdings FFH 0.3% Westpac Banking WBC AU -1.8% XL Group Ltd XL -2.7% Power Corp of Canada POW -0.8% Grupo Financiero Banorte GFNORTEO MM -2.0% Everest Re Group RE -2.8% Canadian Western Bank CWB -0.9% Banco de Chile CHILE CI -2.4% Assurant Inc AIZ -3.1% Industrial Alliance IAG -1.1% SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Technology Nintendo 7974 JP 2.2% Micron Technology MU 2.6% Descartes Systems Group Inc DSG 1.6% Cielo SA CIEL3 BZ 1.2% Lam Research LRCX 1.8% Kinaxis Inc KXS 0.9% MediaTek Inc 2454 TT 0.9% Total System Services TSS 1.7% Constellation Software CSU 0.8% Yahoo Japan 4689 JP -1.7% Skyworks Solutions SWKS -1.3% Sierra Wireless SW -0.1% Samsung Electronics 005930 KS -2.0% Advanced Micro Devices AMD -1.6% Open Text Corp OTEX -0.2% Largan Precision 3008 TT -2.9% Autodesk Inc ADSK -3.0% CGI Group Inc GIB/A -0.3% SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Telecom Telia Co AB TELIA SS 1.2% CenturyLink CTL 2.5% TELUS Corp T 0.5% Nippon Telegraph & Telephone 9432 JP 0.9% Level 3 Communications LVLT 1.3% BCE Inc BCE 0.2% Chunghwa Telecom 2412 TT 0.5% AT&T Inc T -0.1% Rogers Communications RCI/B -0.2% Tele2 AB TEL2B SS -0.8% Verizon Communications VZ -0.1% Telefonica TEF SM -0.9% Telstra Corp Ltd TLS AU -1.0% SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Utilities Empresa Nacional de Electricidad EOCC US 10.8% SCANA Corp SCG 0.8% Superior Plus SPB 0.9% Tokyo Gas Co Ltd 9531 JP 1.9% American Electric Power Co AEP 0.7% Brookfield Renewable Energy BEP-U 0.6% Osaka Gas Co Ltd 9532 JP 1.6% CenterPoint Energy CNP 0.7% Hydro One Ltd H 0.3% Acciona SA ANA SM -0.7% Exelon Corp EXC -0.1% Atco ACO/X -1.2% AGL Energy AGL AU -1.0% PPL Corp PPL -0.2% TransAlta Corp TA -1.5% Cia Energetica de Minas Gerais CIG US -1.9% AES AES -2.1% Algonquin Power & Utilities AQN -1.6% SECURITY_NAME TICKER Chg SECURITY_NAME Ticker Chg SECURITY_NAME Ticker Chg Column4 Real Estate Daito Trust Construction 1878 JP 0.9% Iron Mountain IRM 1.5% Colliers Intl CIGI 0.6% Fibra Uno Administracion FUNO11 MM 0.8% American Tower AMT 1.1% Dream Global REIT DRG-U 0.5% Daiwa House Industry 1925 JP 0.6% Extra Space Storage EXR 0.5% Pure Industrial Real Estate Tr AAR-U 0.3% GPT Group GPT AU -0.8% Macerich Co MAC -2.2% Brookfield Property Partners L BPY-U -0.7% Dexus DXS AU -0.9% Federal Realty Investment Trus FRT -2.3% Granite REIT GRT-U -0.7% Sumitomo Realty & Development 8830 JP -0.9% Kimco Realty KIM -2.3% Boardwalk REIT BEI-U -2.3%

Bold = move of more than 5% 8

Market Elements | Page 7 August 28, 2017

U.S. Market Movers Energy Industrials Consumer Discretionary Consumer Staples Technology Telecom 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 l 43.49 -2.9% UTX  115.33 0.2% ROST 59.02 -0.6% CVS l 75.46 0.1% FB  167.24 0.6% LVLT 55.02 1.3% RIG 8.01 0.5% BA  237.18 0.5% LB l 36.45 -0.3% WBA l 81.16 0.0% GOOGL  928.13 -0.3% ZAYO  34.22 -0.3% SLB l 63.45 -0.7% LMT  303.61 0.3% GPS 23.39 -1.6% SYY  52.14 -0.3% EBAY  34.81 0.4% CCOI H 44.85 0.6% HAL l 38.79 -0.6% GD  197.87 -0.6% FL 35.70 -0.5% KR l 21.72 -0.1% TWTR 16.77 0.7% T l 37.94 -0.1% NOV l 30.34 -0.6% RTN  178.24 0.1% BBY H 62.47 1.0% WFM  41.99 0.0% AKAM l 45.14 0.4% VZ  48.61 -0.1% FTI l 25.50 -1.0% NOC  267.90 -0.5% HD  151.39 1.2% WMT  78.03 -0.8% VRSN  102.21 0.8% CTL l 20.74 2.5% WFT 3.91 -1.5% TDG  271.08 0.2% LOW 73.80 0.6% COST 152.55 0.1% IBM l 142.51 -0.9% FTR 13.25 3.7% XOM l 76.47 -0.3% ARNC 25.17 -0.3% ULTA L 207.75 -2.2% TAP l 89.49 -1.7% ACN  129.24 -0.1% TMUS  63.72 0.0% CVX  107.76 -0.4% JCI l 38.84 0.0% TSCO 58.96 -1.0% STZ  197.88 -0.2% CTSH  69.96 0.3% TDS  29.48 -0.3% OXY l 59.13 -0.2% EMR  58.40 -0.3% TIF  89.35 1.5% BF/B 50.04 -0.7% DXC  84.79 -0.1% Utilities COP 43.05 -1.2% ETN 70.44 -0.4% ORLY 198.06 -2.1% KO  45.42 -0.3% DOX  63.73 0.4% Symbol H/L Last %Chg EOG l 83.40 -1.3% ROK  159.57 0.0% AZO l 525.40 -0.7% PEP  115.54 -0.3% V  103.78 0.4% NEE H 150.88 0.5% PXD l 128.46 -0.6% GE l 24.47 -0.1% AAP l 94.66 -1.2% MNST  55.16 -0.1% MA H 133.85 0.8% DUK H 87.42 0.2% APC L 41.27 -2.6% MMM  202.46 0.2% KMX  63.48 -1.4% DPS  90.34 0.0% PYPL  60.53 0.9% SO  48.35 0.1% DVN l 30.93 -0.7% HON  136.87 0.0% DLPH  94.49 0.2% ADM l 41.77 0.0% ADP 104.76 0.2% AEP H 74.10 0.7% APA L 39.35 -1.8% ROP  230.0 -0.3% LEA  144.02 -0.4% INGR l 123.57 1.0% FIS  91.79 0.5% PCG H 70.31 0.3% CLR 33.05 -1.7% CAT  115.07 -0.2% ALV  105.93 -0.1% BG  74.58 -1.3% FISV  122.83 0.4% EXC  38.27 -0.1% CXO l 108.94 -0.5% CMI  152.71 0.4% GM  35.51 -0.3% KHC l 82.14 -0.6% PAYX l 56.49 0.5% EIX  80.86 0.1% HES l 38.30 -0.5% PCAR  64.40 0.6% F l 10.79 -0.3% MDLZ l 41.30 -0.4% FLT l 143.06 0.4% PPL  39.53 -0.2% NBL l 23.41 -1.0% DE 115.96 0.1% TSLA  345.66 -0.7% GIS l 54.28 -1.3% ADS 223.68 0.7% XEL H 49.54 0.3% MRO l 10.92 -1.2% ITW  136.53 -0.2% HOG l 47.06 -1.4% K l 66.78 -1.4% GPN  93.87 0.6% ES H 63.27 0.3% XEC l 99.57 0.0% SWK  138.67 -0.1% GRMN  52.05 -0.9% TSN 62.55 -1.1% WU l 19.04 0.2% ETR  79.84 0.0% EQT 60.83 -0.4% FTV  64.49 -0.3% MHK  247.12 0.0% CAG l 32.53 -1.8% XRX  32.31 0.2% FE  32.80 0.3% COG  24.76 -0.4% IR 83.86 -0.9% DHI  35.31 -1.3% HRL L 31.05 -0.9% TSS H 67.50 1.7% AGR H 48.90 0.7% NFX l 25.39 0.3% PH  158.41 0.7% LEN  50.92 -1.3% CPB l 50.74 -1.3% VNTV  71.74 0.7% LNT H 43.08 0.5% AR l 19.62 -0.3% GWW L 156.25 -2.2% WHR 168.19 -0.2% SJM l 105.40 0.2% BR  76.91 0.1% PNW H 90.44 0.5% FANG l 88.03 -0.8% WM H 76.26 0.5% NWL l 48.18 0.1% HSY  104.47 -0.7% SABR l 18.43 0.4% UGI  49.41 0.0% RRC l 17.59 -3.2% RSG  64.39 0.0% MAT l 16.47 0.0% MKC l 94.65 -0.3% ADBE  151.79 0.2% ATO H 88.69 0.2% SWN l 5.36 0.6% NLSN l 39.36 -0.3% HAS 94.63 -0.6% PF  59.05 -0.5% CRM  93.66 -0.5% D  80.14 0.1% PE l 24.70 -1.5% EFX  140.62 -0.1% VFC  63.22 -0.3% PM  115.54 0.6% INTU  137.90 0.4% SRE H 119.21 0.2% EGN l 50.14 -0.8% VRSK l 79.23 -0.6% COH 41.90 0.0% MO l 63.93 -0.2% ADSK  111.48 -3.0% ED H 84.59 0.1% CHK L 3.65 -3.7% UPS  113.79 0.3% HBI  24.51 1.0% Financials CTXS 75.60 0.3% PEG H 47.30 0.0% MUR L 22.75 -1.7% FDX  208.84 0.5% PVH  126.23 0.3% Symbol H/L Last %Chg WDAY  103.50 -0.1% WEC H 65.38 0.4% PSX  83.65 0.3% DAL 46.95 0.6% KORS 42.46 0.4% WFC 51.63 -0.3% SNPS  78.79 0.4% DTE H 112.14 0.6% VLO H 68.42 1.1% LUV 51.75 -1.8% NKE l 53.73 -0.3% JPM  91.60 -0.3% CDK  62.88 0.1% AEE H 60.57 0.3% MPC  52.52 1.5% AAL 44.95 -0.7% LVS  60.28 0.3% BAC  23.72 -0.2% ANSS  127.64 -0.1% CMS H 48.63 0.3% ANDV  98.55 3.2% UAL 63.15 -0.3% MGM  31.69 -0.4% C  67.81 -0.1% CDNS H 37.77 1.0% SCG l 60.59 0.8% HFC  31.47 6.5% UNP  104.55 -0.7% WYNN  133.90 -0.6% USB  51.96 -0.2% MSFT  72.83 0.0% CNP H 29.93 0.7% KMI l 19.01 -0.8% NSC  117.76 -0.4% CCL H 68.55 0.6% CMA  69.24 -1.5% ORCL  49.24 0.0% NI  27.09 -0.1% WMB l 29.17 -0.7% CSX 49.50 1.3% HLT  63.17 -0.5% PNC  127.55 -0.3% SYMC  29.92 1.5% AWK  82.00 0.0% LNG 42.14 2.2% Health Care MAR  100.71 0.0% BBT  46.14 0.0% CA  32.61 0.3% AES l 11.19 -2.1% OKE  52.95 -1.3% Symbol H/L Last %Chg RCL  120.76 0.3% STI  55.77 -1.1% RHT H 105.59 0.2% Real Estate TRGP l 43.28 -1.8% MDT 79.59 0.7% NCLH  57.88 0.3% MTB 152.00 -1.2% NOW  111.91 1.2% Symbol H/L Last %Chg Materials ABT  50.26 1.8% MCD H 159.67 0.5% FITB  26.59 -0.3% VMW H 104.68 1.9% VER 8.42 -1.4% Symbol H/L Last %Chg DHR  82.37 0.3% SBUX l 54.40 0.1% KEY  17.39 -1.1% ATVI  62.75 0.3% PLD  62.43 -0.2% LYB  90.32 0.1% SYK  139.57 -0.2% YUM  76.21 0.5% CFG 33.47 -1.1% EA  118.73 1.5% DRE  29.30 -0.3% DD  82.88 0.3% BDX  199.05 0.2% CMG l 312.02 1.0% RF  14.29 -1.1% CSCO  31.54 0.3% HST  17.53 -1.0% DOW  64.67 0.2% BSX  26.97 0.9% ARMK  40.27 0.8% FRC  97.83 -0.3% PANW 129.28 0.5% BXP l 120.25 -1.0% EMN  85.43 0.7% ISRG  986.00 0.8% DRI  84.84 1.4% HBAN 12.72 -0.3% MSI  87.30 0.5% VNO l 74.45 -0.3% MON  116.64 -0.2% ZBH 112.89 -0.3% OMC l 73 0.1% CIT 44.90 -0.6% HRS H 121.33 1.4% SLG l 96.83 -1.0% MOS l 20.07 -1.5% BAX  61.64 0.2% IPG l 20.27 0.3% NYCB l 12.01 -0.9% JNPR 27.53 0.0% ARE  119.30 -1.0% PX  132.08 -0.3% EW  113.11 1.2% CBS  63.75 -0.2% BRK/B  178.70 -0.5% FFIV l 117.71 0.1% HCN  71.24 -0.9% APD  145.78 -0.2% MCK 148.33 0.5% CMCSA  40.34 0.3% AXP  85.41 -0.1% AAPL  161.47 1.0% VTR  67.51 -0.6% ECL  131.46 0.3% CAH l 66.39 0.5% CHTR  389.23 0.1% COF 80.55 -1.2% HPE  17.79 -0.9% HCP l 29.28 -0.9% PPG  104.15 0.4% ESRX l 61.17 0.6% SIRI  5.58 0.0% DFS 59.10 -1.0% HPQ  19.18 -0.7% AVB  188.33 -0.3% SHW  338.92 -0.1% HCA 79.16 -0.4% DISH 56.66 0.0% SYF 30.29 -0.8% WDC  90.56 0.3% EQR  67.37 -0.8% IFF  136.14 0.2% UNH H 195.09 0.4% DIS 102.56 0.1% ALLY  22.20 -2.4% STX l 31.49 0.8% ESS  266.07 0.2% CE  97.55 -0.5% AET  156.53 0.3% TWX  101.70 0.3% BLK  414.34 -0.5% NTAP 38.34 -0.5% UDR  38.93 -0.3% ALB  115.43 0.4% CI H 180.50 0.7% FOXA 27.25 0.0% BK  52.27 -0.7% GLW 28.76 0.3% CPT  89.37 -0.9% RPM l 48.77 0.0% ANTM  193.48 0.4% VIAB l 29.43 0.8% STT  92.90 -0.6% APH  79.75 -0.1% SPG l 156.83 -1.4% ASH  61.26 -0.3% HUM H 255.07 0.8% GPC l 82.95 -0.4% BEN  42.60 -0.2% TEL  77.77 -0.9% GGP l 20.73 -1.4% VMC l 115.94 2.5% AMGN  171.78 1.2% LKQ  34.24 -0.2% TROW  84.14 0.3% AMAT  43.63 0.7% O 57.21 -1.4% MLM 200.35 2.5% ABBV  73.32 1.2% AMZN 946 0.1% AMP  137.75 -0.6% LRCX  160.67 1.8% KIM 19.39 -2.3% BLL l 39.08 -0.6% GILD  74.69 1.2% PCLN ###### -0.2% NTRS 88.96 -0.9% KLAC 91.54 1.2% MAC l 53.08 -2.2% CCK  57.09 -0.1% CELG  131.65 1.5% NFLX 167.12 0.7% IVZ 32.45 -1.0% INTC l 34.65 -0.1% FRT l 125.41 -2.3% IP  53.86 -1.3% BIIB  292.30 2.5% EXPE 142.53 -4.5% AMG  173.99 -0.5% QCOM l 51.81 0.7% BRX l 18.73 -2.6% WRK  55.17 -0.1% REGN  479.22 0.3% QVCA 22.15 1.3% SEIC  57.20 0.0% TXN  80.76 -0.3% REG 64.34 -2.1% SEE l 44.26 -1.2% ALXN  139.02 1.1% TRIP 41.98 0.6% GS 220.35 -1.0% AVGO  243.25 -1.0% NNN 40.94 -1.5% PKG  109.06 -1.2% JNJ  131.74 0.0% M l 21.16 0.2% MS  45.48 -1.0% NVDA  164.97 0.7% AMT H 145.78 1.1% AVY  93.30 -0.4% PFE  33.47 0.2% JWN 45.06 -0.6% SCHW  39.54 -0.6% ADI  79.44 0.6% PSA l 204.30 0.2% AA H 42.17 2.3% MRK  63.32 0.6% KSS 39.55 0.8% AMTD  42.86 -0.7% MU  31.08 2.6% CCI H 107.05 0.1% SCCO H 41.77 2.6% BMY  58.58 0.4% TGT l 54.44 -1.0% RJF  78.42 -0.4% SWKS  100.70 -1.3% EQIX  462.91 -0.7% FCX  15.53 1.6% AGN 223.94 1.0% DG  77.37 -0.4% ETFC  41.03 -0.1% XLNX  65.18 0.7% WY  31.77 0.2% NEM  38.30 3.5% LLY  78.84 0.1% DLTR 80.38 0.0% CME  126.93 -0.1% MCHP  83.76 1.4% DLR  117.57 -0.5% NUE 54.58 -0.2% ZTS  61.54 0.3% TJX l 71.80 0.2% ICE  65.30 -0.2% MXIM  45.14 0.2% SBAC H 152.36 0.2%

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 9

Market Elements | Page 8 August 28, 2017 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 L 3.14 -2.2% MX 58.10 -0.1% CAE 19.96 -1.1% MG  58.45 -1.9% XIU  22.20 0.0% XSB l 27.68 0.0% ESI L 6.32 -0.5% CHE-U  18.45 -0.4% BBD/B  2.53 -0.8% LNR  67.49 -1.6% XSP  27.88 0.0% XBB l 30.99 -0.1% TDG L 1.57 -0.6% POT l 21.45 -0.5% MDA l 65.35 -0.2% MRE 10.61 -0.8% XIC  23.90 0.0% XCB  21.29 0.0% SCL L 24.40 -5.0% AGU l 120.4 -0.6% MAL 18.11 0.6% DII/B l 29.18 0.3% XDV  24.26 -0.4% XRB l 23.71 0.3% MTL l 14.95 -1.2% CCL/B 57.1 -1.5% HRX 13.03 -1.6% DOO  41.30 0.4% CPD  14.03 0.0% H l 22.93 0.3% PSI 17.21 -0.9% WPK 52.25 -0.1% DOOR US 63.10 3.8% TOY  45.50 0.0% XFN  35.38 -0.3% FTS  45.88 -0.1% SES L 7.27 -2.8% ITP L 19.15 -0.7% DRT 5.67 0.4% LULU US 60.13 -0.1% ZEB  26.65 -0.3% EMA  47.95 0.2% CEU 5.07 -2.9% CAS 13.93 -0.9% SNC l 53.45 0.8% GIL  38.63 0.4% RY  93.04 -0.2% SPB l 11.51 0.9% EFX 15.35 -1.5% TECK/B 31.26 1.6% WSP  51.04 0.4% GOOS l 22.33 2.1% TD  64.66 -0.2% VNR  22.72 -0.8% TCW 3.45 0.6% TRQ 4.04 4.4% ARE  16.84 -2.3% ATZ l 12.67 0.6% BNS  77.20 -0.6% CU  38.92 -0.6% TESO US 4.50 -2.2% IVN 4.58 3.2% BAD 28.29 1.4% TSGI 21.79 -1.3% BMO  92.43 0.1% ACO/X 46.01 -1.2% TOT l 11.95 0.7% HBM  11.23 3.2% BDT 9.10 -1.1% GC  32.34 -0.1% CM 105.45 -0.4% JE 7.09 -0.3% CFW 3.47 2.1% MDI  7.91 -1.0% BBU-U  36.77 -0.6% QSR  76.62 0.1% NA  55.31 -0.6% NPI  23.78 -1.1% SU 38.96 -0.6% FM 15.20 5.4% BLDP 3.44 -0.3% MTY 46.81 0.0% CWB  28.24 -0.9% AQN  13.32 -1.6% IMO l 36.54 0.1% LUN H 9.80 5.5% NFI 50.49 -2.2% CARA l 22.63 0.5% LB 53.60 -0.6% CPX  25.54 -0.5% HSE l 14.43 -0.2% NSU l 2.78 -1.1% WPRT  3.06 5.2% BPF-U l 21.20 -0.7% MIC  36.33 -0.2% TA  7.70 -1.5% CVE l 9.21 -0.8% III 3.61 -0.6% AFN  58.00 0.3% AW-U 33.98 1.2% HCG 13.04 0.1% ATP l 3.01 0.3% CNQ l 38.60 -0.1% XGD 12.86 3.6% ATA  12.55 -1.3% PZA  16.36 -0.2% FN 26.10 1.2% BEP-U  44.38 0.6% ECA l 11.27 -1.5% ABX 22.08 3.2% XTC l 9.63 1.7% FRII 9.46 0.9% EQB 52.80 -0.4% RNW  14.33 -0.1% VII l 17.82 -1.1% G l 16.84 3.3% FTT H 28.08 5.5% DIV  2.63 13.1% MKP  15.10 0.3% INE  14.60 -0.5% CPG L 8.22 -2.4% FNV H 102.16 3.0% TIH  49.87 11.1% ECI  20.84 -0.3% FC l 12.95 -0.9% BLX  21.95 -0.2% TOU L 23.84 -0.9% AEM 61.99 4.6% RCH  30.70 -0.6% AIM 1.99 8.2% ONEX  98.66 0.0% ARX l 15.97 -0.6% K 5.49 3.8% RUS  25.75 -0.3% MDCA US 10.00 -1.0% EFN l 8.86 0.5% PEY l 19.88 0.4% THO l 5.60 0.4% WJX 19.42 -0.5% CJR/B  13.63 -0.7% CBL l 10.91 0.7% Telecom Services PSK 28.37 -1.7% DGC 16.92 4.1% TCL/A  23.66 -1.2% RAY/A  8.78 -0.8% BAM/A  49.09 -0.5% Symbol H/L Last %Chg VET l 39.30 -1.3% YRI 3.62 5.5% WCN  81.21 0.3% SJR/B  27.52 -0.3% IGM  41.03 -0.6% BCE  59.46 0.2% WCP L 8.71 -2.6% NGD 4.61 6.0% RBA l 35.71 -0.1% QBR/B  47.52 -1.1% CIX  27.18 -0.6% T  44.81 0.5% RRX L 6.38 -1.5% BTO 3.37 5.6% BYD-U  92.90 0.3% CCA  90.77 0.0% FIH/U  17.25 -0.1% RCI/B  64.52 -0.2% PXT L 12.48 -2.3% ELD 2.58 5.7% KBL l 39.11 -0.7% CGO  80.20 0.0% AD  22.77 0.4% BIR l 5.68 -3.6% PHYS/U  10.65 1.0% BDI 1.77 -4.3% LGF/A US  29.24 -1.2% FSZ  14.59 -0.7% ERF 10.76 -2.1% OGC 3.92 1.0% MSI  20.38 1.6% CGX L 35.27 -1.8% SII 2.15 0.0% AAV l 7.92 -2.1% AGI 10.07 3.5% STN  33.80 0.0% IMAX US l 18.80 0.0% GS  17.29 -0.6% Real Estate POU  20.70 -1.7% TXG 20.05 2.8% WJA  25.80 0.1% DHX/B 6.37 -0.9% GCG/A 25.35 -0.8% Symbol H/L Last %Chg TOG l 4.92 -3.7% PVG l 10.26 2.6% AC  23.01 -1.2% UNS l 27.75 0.4% U l 3.74 3.3% XRE  15.88 -0.3% FRU  13.57 -3.0% IMG H 7.91 3.5% EIF 30.70 2.7% HBC 11.99 4.7% AGF/B H 7.99 2.2% HR-U l 21.05 -0.4% BTE l 2.94 -4.2% NG l 5.42 1.1% CHR  8.17 -0.7% DOL  123.31 0.1% DC/A l 2.68 1.9% REF-U l 46.14 -0.4% MEG 4.66 -3.3% SMF 3.54 3.2% CNR  99.10 -0.2% CTC/A  151.34 -0.5% CF 4.90 -2.2% CUF-U 13.42 -0.3% SPE l 5.32 0.2% SSRM 13.12 4.6% CP l 190.92 0.0% RET/A l 4.36 0.7% GMP 2.80 0.0% AX-U  13.22 -0.2% NVA 6.24 -2.5% CG 7.12 1.9% TFII 29.88 -0.3% DTEA US l 5.10 0.0% TRI  56.71 -0.7% DRG-U H 11.26 0.5% GTE US L 1.96 -4.4% OR  17.13 1.4% STB  7.45 0.5% GSY 26.11 0.5% X 66.87 0.2% MRT-U l 14.16 0.3% OBE 1.18 -6.3% GUY 4.61 6.5% WTE 24.70 0.1% ACQ 21.43 -1.1% MFC  24.60 -0.7% ACR-U  11.28 -0.9% PGF L 0.70 -4.1% MUX US 2.57 9.8% LNF  18.14 -0.1% GWO  35.08 0.0% GRT-U  50.41 -0.7% CR 3.98 -2.5% SSL 5.91 3.0% ZZZ 33.74 0.7% SLF  47.77 -0.7% AAR-U  6.63 0.3% AOI L 1.74 -2.2% AKG 1.43 5.9% PWF  33.94 -0.3% WIR/U  13.16 0.5% BNP 2.66 -3.3% CGG 2.31 6.9% Symbol H/L Last %Chg POW  30.62 -0.8% DIR-U  9.10 -0.1% KEL 5.79 -1.7% KDX 4.13 3.2% NVDQ US « 11.74 1.0% IAG  53.36 -1.1% AP-U  38.49 -0.6% PONY L 3.65 -2.7% ASR 2.15 4.4% CRH l 3.11 0.6% Symbol H/L Last %Chg FFH 635.85 0.3% D-U  21.03 -0.4% BNE l 15.50 -1.9% SEA  15.55 5.6% CSH-U l 14.51 -0.1% PJC/A  21.91 0.4% IFC  102.21 -0.2% NWH-U H 11.00 0.2% CNE 4.09 -1.2% PG 3.85 0.3% SIA  17.79 -0.1% L l 67.26 0.5% CAR-U  33.86 0.0% TET 5.52 -0.9% RIC 10.77 6.3% EXE 9.22 -0.8% ATD/B l 59.67 -0.8% BEI-U L 40.03 -2.3% CJ l 4.21 -2.8% KL H 15.45 1.8% DR 14.81 -2.4% WN l 107.74 0.0% Technology NVU-U  22.46 0.0% SRX L 3.40 -2.9% AR 2.80 3.3% PLI l 1.20 -3.2% MRU l 41.34 0.0% Symbol H/L Last %Chg KMP-U  13.04 -0.2% SGY l 1.95 -1.5% ROXG 1.33 0.0% GUD l 8.29 -0.2% EMP/A  21.19 -1.1% SHOP  129.75 0.2% IIP-U  7.80 0.0% ATH l 0.91 -3.2% LUC l 2.72 0.7% VRX 17.76 0.8% NWC  31.35 0.2% REAL l 9.00 -1.1% MRG-U  15.37 0.0% CONA L 2.03 -6.0% MPVD 4.60 3.1% WEED 8.90 0.7% LIQ l 9.01 0.3% TCX US 52.90 0.7% REI-U l 23.82 0.0% TVE 2.20 -2.7% DDC  17.62 0.1% ACB 2.59 0.0% CSW/A l 21.50 1.2% SUM  10.24 0.4% SRU-U l 30.29 0.2% SRX L 3.40 -2.9% SWY l 0.76 1.3% APH 5.95 -0.3% BCB 18.68 -0.1% GIB/A l 62.15 -0.3% CRT-U l 13.91 -0.1% PXX 1.06 -5.4% DPM 2.81 6.4% SAP l 42.47 -0.3% CSU  688.86 0.8% CRR-U l 13.50 0.3% KEY l 36.16 -0.6% WPM 25.32 3.7% MFI  34.34 -0.6% OTEX l 39.78 -0.2% CHP-U  13.16 -0.6% PKI l 25.98 1.1% PAAS 23.19 3.7% PBH  97.03 -0.6% DSG H 34.54 1.6% PLZ-U l 4.51 0.0% ENB l 49.86 -1.1% FR 8.72 7.9% CLR l 10.34 -1.3% ENGH l 49.81 0.0% SRT-U l 13.41 -0.5% TRP  62.68 -0.3% MAG 15.94 4.8% AGT l 24.27 0.9% CMG 9.24 0.0% ONR-U H 4.24 0.2% PPL l 39.43 -1.1% FVI l 5.99 5.5% HLF l 13.98 0.4% KXS 68.77 0.9% MRC l 178.50 -0.3% IPL L 22.35 -1.7% EDR 3.10 8.4% SOY 10.75 0.5% ABT 7.25 -2.8% TCN  10.78 -0.1% ALA L 27.33 -1.0% LIF H 19.11 1.0% RSI  6.35 1.4% MITL US  8.19 0.1% BPY-U  29.38 -0.7% VSN  17.34 -0.5% WFT  62.53 -0.4% SW 26.98 -0.1% ENF l 30.88 -0.1% SJ  46.75 1.4% SVC  4.38 0.2% GEI 17.14 -0.7% OSB  42.78 2.7% BB 11.25 0.4% KML  17.25 -0.8% CFP  21.25 -0.7% ET  18.02 -0.3% TWM l 1.29 -0.8% IFP 17.22 -0.7% NOVT US  38.10 -0.3% TWM l 1.29 -0.8% WEF  2.59 0.4% AVO  16.45 0.2% CCO 12.27 -1.6% UFS 50.49 1.7% CLS l 14.26 0.1% DML 0.57 -1.7% MERC US  11.25 1.4% CSIQ US 15.38 -0.6% FCU 0.66 3.1% CFX  13.09 1.6% XEG l 10.61 -1.1% RFP 6.35 0.0%

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 10 Market Elements | Page 9 August 28, 2017 August 29, 2017

Trends & Inflection Points

The Shift Into Golds Quantitative/Technical

• We continue to recommend an allocation towards gold shares, as Mark Steele Analyst painful as that has been so far this year, but impactful in a time like [email protected] (416) 359-4641 this where US yields and yield curves continue to trend lower, and Tiberiu Stoichita gold is an alternative to that experience. [email protected] (416) 359-4684 th • Gold stocks improved to a 6 decile position in our global relative David Cheng strength ranking yesterday. That was before the North Korean missile [email protected] (416) 359-7383 flew over Japan, and that is the best reading so far this year. Legal Entity: BMO Nesbitt Burns Inc.

o You are not really paying much for golds relative to bullion these days, but that has, and could turn on a dime. That stock/gold ratio is at a 3.5m high, Quantitative/Technical Research Website and just above a rising 50d MA. . Price trends on gold shares still have a fat tail to the negative, but with the break above $1,300 yesterday, many are breaking above flat or negative price trends – Exhibit 1. • So at this point, you have your bottom fishing opportunities like ABX, and G, as well as your momentum stars like RGLD and IMG – Exhibits 2, 3.

Exhibit 1: Price Trends on Gold Shares

Exhibit 2: Barrick (ABX CN) Dividend Adjusted Price Trend Exhibit 3 – Royal Gold (RGLD US) Dividend Adjusted Price Trend

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

11 08:03 ET | 08:03 ET˜ August 28, 2017

Trends & Inflection Points

The NASDAQ Break & Parsing the Internet Quantitative/Technical

• The NASDAQ, with more than double the torque of the S&P 500, Mark Steele Analyst broke trend on Friday, so it’s Exhibit 1 today. [email protected] (416) 359-4641 o Behind the scenes, the breadth of technology has Tiberiu Stoichita meandered down to neutral, but most sectors are mucking [email protected] (416) 359-4684 about in the middle ground. David Cheng [email protected] (416) 359-7383 • At the global level, it was only internet & software that broke trend, and here too, this group has the highest torque of the technology industries (FYI, Legal Entity: BMO Nesbitt Burns Inc. Internet retail, a large component of the NASDAQ also broke trend) – Exhibit 2. Quantitative/Technical Research Website o At the stock level, we don’t see a torrent of breakdowns. So clearly when markets soften, the high torque stuff gets knocked from its steep trends, but this softening market is more about stock picking rather than ship abandoning. . For the technology specialist, it’s looking at the market rewarding Alibaba more than Google, and looking at the bottoming of Gogo versus the topping of TrueCar – Exhibit 3.

Exhibit 1: NASDAQ (with North American Benchmarks in Insert) Exhibit 2: MSCI World Internet Software & Service (Industries in Insert)

Exhibit 3: Internet Software & Services vs MSCI ACWI Technology

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

12 07:35 ET | 07:35 ET˜ August 25, 2017

Trends & Inflection Points

Synchronicity II Quantitative/Technical

• The positive: CRB Raw Industrials index, which we view as the lead Mark Steele Analyst indication for economic expansion broke out to a 3-year high [email protected] (416) 359-4641 yesterday. We’ll get back to that in a moment. Tiberiu Stoichita • The negative: Updating Wednesday’s note, our industrial relative [email protected] (416) 359-4684 strength breadth reading slipped into negative territory yesterday. David Cheng Over the past few years, these negative readings have been rare and [email protected] (416) 359-7383 brief (‘all her suicides are fake’) – Exhibit 1. Legal Entity: BMO Nesbitt Burns Inc.

o We delved into where the weakness has emanated from on a subindustry level on Wednesday. Today we’ll look at all industrial sector price trends to Quantitative/Technical Research Website detail that most global industrial sectors have broken trend, and the weakest trends, where pricing is furthest below falling 50d MAs is found in US SMID – Exhibit 2. . Our industrial strength breadth score is more ‘creating and building stuff’ related rather than global and U.S. large cap price indices that are Aerospace & Defense driven. This breadth reading moves more with the U.S. yield curve, another indication of economic optimism/pessimism. • So you do you square the optimism of the CRB Raw Industrials, with the pessimism of the U.S. yield curve? You don’t. That was Carl Jung’s point of synchronicity. It Stings, but you can have Chinese optimism, and U.S. pessimism in the same chart – Exhibit 3. And every single meeting with his so-called superior is a humiliating kick… Sting, Synchronicity II

Exhibit 1: Industrial Relative Strength Breadth Z-Score

Exhibit 2: Industrial Sector Price Trends Exhibit 3: CRB Raw Industrials & US Yield Curve (10-2)

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

13 08:30 ET | 08:30 ET˜ August 24, 2017

Trends & Inflection Points

Canadian Peer Review Quantitative/Technical

• As markets quiet before Draghi and Yellen speak on Friday, we are Mark Steele Analyst going to bring out a useful tool for looking at the “best of” stocks, [email protected] (416) 359-4641 despite the fact that its subindustry may look awful: vs Peers. Herein, Tiberiu Stoichita a momentum buy is defined as a stock in outperforming trends [email protected] (416) 359-4684 against both the market and the subindustry – Exhibit 1. David Cheng [email protected] (416) 359-7383 o Most rewarded bank amongst peers – see link. Legal Entity: BMO Nesbitt Burns Inc. o Most rewarded gold stocks are here. Most rewarded E&P are found here. o Quantitative/Technical Research Website

Exhibit 1: Canadian Momentum Buys using SubIndustry Peer Review Trends

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

14 09:55 ET | 09:55 ET˜ August 23, 2017

Trends & Inflection Points

The Slide of Industrial Breadth Quantitative/Technical

• When you look at the bullish economic signaling of base metals, iron Mark Steele Analyst ore, and steel, you may think that you could carry that thesis into the [email protected] (416) 359-4641 industrials like construction & engineering, machinery, building Tiberiu Stoichita products and the like, but alas, you cannot. That material optimism is [email protected] (416) 359-4684 very China-centric. Conversely, weakness in these industrial groups is David Cheng driving our industrial relative strength breadth measure to the [email protected] (416) 359-7383 weakest in a year – Exhibit 1. Legal Entity: BMO Nesbitt Burns Inc.

o The peaks of industrial relative strength breadth, or the salvos into positive territory, over the past year have coincided with a US yield curve that made Quantitative/Technical Research Website counter-trend swings toward steepening. Each faded back. The US 30-5 yield curve is now trending lower, below falling moving averages – Exhibit 2.

o These markets are telling you that Builder Bob ain’t building, and thanks to the POTUS, that now comes with the threat of a US government shutdown. From a US centric position, Aerospace & Defense still looks great (albeit extended), and CAT-weighted Construction Machinery too, but the bulk of US Industrial subindustries are underperforming, or are breaking lower – Exhibit 3.

o For those that can short, we highlight the momentum sells in the weakest industrial subindustries – Exhibit 4. Some stagger and fall; after all it's not easy banging your heart against some … wall Pink Floyd, Outside the Wall

Exhibit 1: Industrial Relative Strength Breadth Z-Score Exhibit 2: US Yield Curve (30-5)

Exhibit 4 – Largest 15 North American Industrial Mo Sells in Weak Exhibit 3: US Industrial Subindustries (> 0.2% Weight) vs S&P 1500 SubIndustries – See Link for Full List

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

15 09:22 ET | 09:22 ET˜ August 22, 2017

Trends & Inflection Points

The Red SOX Quantitative/Technical

• It was the Market Vectors Semiconductor ETF, severing its uptrend Mark Steele Analyst yesterday that caught our attention but you can’t make a title out of [email protected] (416) 359-4641 that so we checked and found that indeed the SOX broke down Tiberiu Stoichita yesterday as well, so as we wind down August, we bring you the [email protected] (416) 359-4684 boys of summer – Exhibit 1 and insert. David Cheng • Moving from the absolute to the relative, one sees the deterioration [email protected] (416) 359-7383 in semiconductor stocks in a generalist portfolio all year – Exhibit 2. Legal Entity: BMO Nesbitt Burns Inc. • Almost 20% of the 78 semiconductor stocks in our system have severed uptrends like the SOX – Exhibit 3. More than a third look worse, and are trending lower. Quantitative/Technical Research Website

I should just let 'em go Don Henley, Boys of Summer

Exhibit 1: MV Semiconductor ETF (SMH), with Philly SOX Index in Insert Exhibit 2: Semiconductor Relative Strength Breadth Decile

Exhibit 3: Semiconductor Stocks With Severed Price Uptrends – See Full Spectrum Here

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

16 08:16 ET | 08:16 ET˜ August 21, 2017

Trends & Inflection Points

Lost in the Flood Quantitative/Technical

• Our breadth work on staples broke to the upside at the first risk to Mark Steele Analyst the US presidency, when “Impeach Trump” odds spiked in May. Both [email protected] (416) 359-4641 time series retrenched, yet staples rose once again seven sessions Tiberiu Stoichita ago, on the signaling that we are more familiar with; that is, staples [email protected] (416) 359-4684 relative strength breadth improves when credit risk inflects higher. David Cheng Now, with a US Political Bank Run starting, and credit risk continuing [email protected] (416) 359-7383 to inflect higher, we recommend adding to staples – Exhibit 1. Legal Entity: BMO Nesbitt Burns Inc. • If credit risk and political risk rise, would you make money in staples? Not likely, but we believe you would lose less than the overall market – Exhibit 2. Quantitative/Technical Research Website

o A key return of capital vs return on capital inflection point came Friday, when long-term treasuries broke above a slightly underperforming trend against the S&P 500 TR index, but we digress – Exhibit 3. • Within staples, the most rewarded industries are personal products and beverages – Exhibit 4. • At the stock level, a tight list of global momentum buys with the top three subindustry deciles are found at this link.

That's quicksand, that ain't mud. Have you thrown your senses to the war, or did you lose them in the flood? Bruce Springsteen, Lost in the Flood

Exhibit 1: Staples Relative Strength Breadth Z-Score Exhibit 2: Global Staples Total Return Price Trend (RS Trend Here)

Exhibit 3: Long-Term Treasuries Bond Price Index vs S&P 500 TR Index Exhibit 4: Price Trends on Global Staples Indices (GICS Level 3)

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

17 07:54 ET | 07:54 ET˜ August 18, 2017

Trends & Inflection Points

Fingerprint of a US Political Bank Run Quantitative/Technical

• As we wrote yesterday, we have not seen a political bank run in our Mark Steele Analyst career, which may mean that the market has not seen one, and [email protected] (416) 359-4641 strategies have not been back tested for one. We can, however point Tiberiu Stoichita out the fingerprint that it is leaving, and we conclude that as far as [email protected] (416) 359-4684 risk markets are concerned, it looks a lot like a normal bank run; David Cheng [email protected] (416) 359-7383 o US Bank credit risk is breaking to the upside – Exhibit 1. Legal Entity: BMO Nesbitt Burns Inc. o Overall European and US corporate credit risk is breaking to the upside – Exhibit 2. Quantitative/Technical Research Website o Equity indices are breaking to the downside – Exhibit 3. o Volatility is breaking to the upside (which is likely to be the most impactful issue at hand) – Exhibit 4. • This continues to be a developing story, but in some cases the trends can be expected to remain the same.

o Utilities are the markets most favoured sector by our breadth measure. We expect that will continue. o Long term treasury prices are trending higher. We expect that will continue. o The US dollar is trending lower. We expect that will continue.

When anyone asks how I can best describe my experience in nearly 40 years at sea, I merely say, uneventful Captain Edward John Smith (1850 -1912)

Exhibit 1: US Bank CDS Which Broke Above Narrowing Trends Yesterday Exhibit 2: Corp Credit Risk Breaking Above Narrowing Trends Yesterday

Exhibit 2: Equity Indices Breaking to the Downside Yesterday Exhibit 4 – Volatility Breaking to the Upside Yesterday

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

18 08:11 ET | 08:11 ET˜ August 17, 2017

Trends & Inflection Points

Discretionary Disasters Quantitative/Technical

• Following up on yesterday’s note, highlighting the breakdown in US Mark Steele Analyst discretionary sectors, we narrow in on the worst of: North American [email protected] (416) 359-4641 Discretionary momentum sells in the weak weakest subindustries. Tiberiu Stoichita Here are 22 stocks which, technically speaking, are all short-sale [email protected] (416) 359-4684 candidates – Exhibit 1. David Cheng • On a side note, we have never in our career had to consider a “run on [email protected] (416) 359-7383 the bank” description in reference to a major political establishment. Clearly there are Legal Entity: BMO Nesbitt Burns Inc. currency, interest rate, and thus equity implications here. These are interesting times, which we highlight in great detail in our afternoon, Market Elements note. Quantitative/Technical Research Website

Exodus, all right! Movement of Jah people! Bob Marley & the Wailers

Exhibit 1: North American Momentum Sells (Price Trends Shown) in the Weakest Discretionary Subindustries

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

19 09:17 ET | 09:17 ET˜ August 16, 2017

Trends & Inflection Points

US Discretionary Breaks Lower Quantitative/Technical

• The S&P 500 Consumer Discretionary index broke to a 2y relative Mark Steele Analyst strength low yesterday as the spring optimism has completely [email protected] (416) 359-4641 reverted to a pre-autumn chill – Exhibit 1. Tiberiu Stoichita • The trend on price also broke trend yesterday (Exhibit 2), and it was [email protected] (416) 359-4684 not just the 500 trend, there were five US discretionary indices that David Cheng broke down in the Tuesday session (Exhibit 2 top left insert). The [email protected] (416) 359-7383 weighty stocks in the 500 that sport broken trends include AMZN (and note the Trump Legal Entity: BMO Nesbitt Burns Inc. tweet this morning), PCLN, SBUX, and EXPE (Exhibit 2 bottom right insert). • Of course this sector is a basket of dissimilar stocks, so we parse the 500 members, and Quantitative/Technical Research Website back in the relative realm, in Exhibit 3;

o Autos are weak, durables and apparel are mixed, services are slanted to the positive, but are breaking lower, media is slanted to the negative and are breaking lower, ditto for retailing.

Exhibit 1: US Discretionary Sector vs S&P 500 Exhibit 2: US Disc. Sector Price Trends (Stocks Breaking in Insert)

Exhibit 3: S&P 500 Consumer Discretionary Stocks vs S&P 500

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

20 08:09 ET | 08:09 ET˜ August 15, 2017

Trends & Inflection Points

Because Volatility is Mean Reverting Quantitative/Technical

• Sure, we quantify the volatility on 27 macro financial instruments, so Mark Steele Analyst we can look for the spikes to buy into. But for the stock picker, we [email protected] (416) 359-4641 also run screens of oversold stocks that have been very volatile Tiberiu Stoichita recently, and also stocks that are breaking out of very low volatility [email protected] (416) 359-4684 patterns – Exhibit 1. These are put in for the clients who know that David Cheng volatility is mean reverting and who are looking for; [email protected] (416) 359-7383 Legal Entity: BMO Nesbitt Burns Inc. o Buy the dip opportunities, like that found in Onex – Exhibit 2. o Buy the breakout opportunities, like that found in First Cash FS – Exhibit 3. Quantitative/Technical Research Website

Exhibit 1: Part of our TIPs Suite (Available Daily in the “Click Here” Button – Top Left)

Exhibit 2: Onex Corp Dividend Adjusted Price Trend Exhibit 3 – First Cash Financial Services (FCFS US) DVD Adj Price Trend

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

21 09:11 ET | 09:11 ET˜ August 14, 2017

Trends & Inflection Points

Mining : Where 13 > 29 Quantitative/Technical

• We are really just feeding it back to you. Our relative strength Mark Steele Analyst breadth readings show how you, the asset manager, price stocks [email protected] (416) 359-4641 relative to benchmarks and sectors. Aluminum, with atomic number Tiberiu Stoichita #13 is into its second year of a bull market. Aluminum stocks garner a [email protected] (416) 359-4684 st 1 decile reading in our breadth work. On the other hand, copper, David Cheng with atomic number #29, looks like more churn, leg up, churn, leg up, [email protected] (416) 359-7383 and that second leg up is in the here and now. Our relative strength breadth reading on Legal Entity: BMO Nesbitt Burns Inc. copper stocks improved to 5th decile, or neutral, then last week as the market went “risk th off”, the group was Rodney Dangerfielded back to 10 decile. Quantitative/Technical Research Website o Followers of trends will be overweight the outperforming atomic #13, and underweight atomic #29 – Exhibits 2, 3. I don’t get no respect Rodney Dangerfield

Exhibit 1: Materials Relative Strength Breath Heat Map

Exhibit 2: Aluminium Stocks Outperforming ACWI and Materials Exhibit 3 – Copper Stocks Underperforming ACWI And Materials

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

22 08:22 ET | 08:22 ET˜ August 11, 2017

Trends & Inflection Points

More Meaningful Than Covfefe Quantitative/Technical

• Your equity index benchmark has probably broken its uptrend this Mark Steele Analyst week, unless you are Canadian, whereupon your benchmark is [email protected] (416) 359-4641 already trending lower. Does one buy the dip? Tiberiu Stoichita • Clearly the Trump “locked and loaded” stance towards Kim Jong Un is [email protected] (416) 359-4684 causing some inflation in volatility, most of which can be found in the David Cheng volatility of equity volatility – Exhibit 1. [email protected] (416) 359-7383 • These spikes make one want to catch the falling knife as long as the trends can be Legal Entity: BMO Nesbitt Burns Inc. assumed to hold. But there are shifts taking place that tell you that some of the trends are changing, so unless you run an index/quasi index fund you should be shifting: Quantitative/Technical Research Website

o The most spectacular trend this year has been growth vs. value, and here we see that trend slowly fading away – Exhibit 2.

o Our relative strength breadth work shows an equity market slowly developing a bear market tilt as staples gains on credit concerns, and technology weakens back to the zero mark – Exhibit 3. • Those that want to sleep well at night can do so with a trend of modest (6%) mean, the Barclays US Aggregate Bond index – Exhibit 4.

“Military solutions are now fully in place, locked and loaded, should North Korea act unwisely. Hopefully Kim Jong Un will find another path!” US Commander in Chief of the Army and Navy of the United States of America, Donald Trump

Exhibit 1: Implied Volatility Gauges Moving More Than 10% This Week Exhibit 2: MSCI World Growth vs. Value

Exhibit 3: Global Relative Strength Heat Map Exhibit 4 – Barclays US Aggregate Bond Index

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

23 08:43 ET | 08:43 ET˜ August 10, 2017

Trends & Inflection Points

Staples as Credit Risk Inflects Higher Quantitative/Technical

• We need to follow up on yesterday’s note of defensive options, as Mark Steele Analyst some great corporate credit risk trends are breaking bad. [email protected] (416) 359-4641 o We see it in US banks – Exhibit 1. Tiberiu Stoichita [email protected] (416) 359-4684 o We see it in Europe HY and Main – Exhibit 2. David Cheng • The sector that enjoys a higher corporate credit risk environment, at [email protected] (416) 359-7383 least on a relative basis, is staples, and it too has started to firm to the zero mark – Legal Entity: BMO Nesbitt Burns Inc. Exhibit 3.

• At a stock level, the largest 15 staple outperformers vs. ACWI are shown in Exhibit 4. Quantitative/Technical Research Website o The full list is here. Similar lists of index constituents outperforming local benchmarks and sectors are found here: S&P 500, Russell 2000, TSX, EAFE. ‘I’m not in danger, I am the danger’ Walter White, Breaking Bad

Exhibit 1: US Bank CDS (Average of BAC, C, JPM) Exhibit 2: European Main CDS Index (With Other Corp CDS in Insert)

Exhibit 3: Global Staples Relative Strength Breadth Z-Score Exhibit 4 – Largest 15 Staples Outperforming ACWI & Sector

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

24 08:53 ET | 08:53 ET˜ August 9, 2017

Trends & Inflection Points

Utilities Already Set up for Reward Quantitative/Technical

• As the POTUS ramps up the rhetoric on North Korea, and North Korea Mark Steele Analyst responds in a likewise fashion, the markets move to reward safe [email protected] (416) 359-4641 havens, and decidedly moves to a risk-off stance. We take this Tiberiu Stoichita opportunity to highlight, once again, the safeish haven that already [email protected] (416) 359-4684 gets the nod above all other safe havens: David Cheng [email protected] (416) 359-7383 o Utilities vs. other sectors – Exhibit 1. Legal Entity: BMO Nesbitt Burns Inc. o Utilities vs. Long Duration Treasuries – Exhibit 2. Utilities vs. Golds – Exhibit 3 o Quantitative/Technical Research Website o Utilities vs. ACWI – Exhibit 4. • These links take you to the spectrum of utilities in your benchmark: S&P 500, Russell 2000, S&P/TSX, STOXX 50, MSCI World, MSCI EAFE, MSCI ex USA. It's frightening, wish I could stop this world from fighting Southern Nights RIP Glen Campbell 1936-2017

Exhibit 1: Global Relative Strength Breadth Heat Map Exhibit 2: S&P 1500 Utilities vs. Long-Term Treasuries (LT11TRUU)

Exhibit 3: Global Utilities vs. NYSE Arca Gold Miners Index Exhibit 4 – Largest 75 Utilities vs. ACWI

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit BMO Capital Markets is Restricted on Hydro One 25 09:15 ET | 09:15 ET˜ August 8, 2017

Trends & Inflection Points

The Retrenchment of Pharma Quantitative/Technical

• Big Pharma was doing very well till Q3 2015. Then it started trending Mark Steele Analyst lower, then it started collapsing lower, then it rebounded; now it’s [email protected] (416) 359-4641 retrenching back towards the “capitulation lows” from which we Tiberiu Stoichita started the year – Exhibit 1. Little pharma, which our relative strength [email protected] (416) 359-4684 breadth reading measures (as the median market cap of our 102 David Cheng stocks is merely $4.3bn) is typically neutral, but has slipped to a [email protected] (416) 359-7383 th weakest, or 10 decile reading – Exhibit 2. Legal Entity: BMO Nesbitt Burns Inc. • With both readings decidedly negative, you should be looking for trim candidates, as stocks are more likely to break lower than higher. We highlight the largest 20 pharma Quantitative/Technical Research Website stocks in downtrends in Exhibit 3. It’s not so much to point out the disaster which is Teva, sporting an RSI of 12, but rather to point out stocks near the the bottom of the graphic, which are just meandering lower. Does that meander represent a top for the Merck’s of this world? Then there are the stocks, like Bayer, which are breaking uptrends. Those should also be scrutinized in the portfolio, given the breadth of the weakness.

Exhibit 1: Market Cap Weighted Pharmaceuticals vs MSCI World Exhibit 2: Equal Weighted Pharmaceuticals Relative Strength Z-Score

Exhibit 3: Largest 20 Pharmaceutical Stocks in Price Downtrends – Full Spectrum of Pharma Price Trends Found Here

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

26 07:47 ET | 07:47 ET˜ August 4, 2017

Trends & Inflection Points

Channeling Otis Quantitative/Technical

• This is your August long weekend, ‘Sittin’ On The Dock of the Bay list: Mark Steele Analyst Momentum buys with low volatility, indicated yield over 2%, and [email protected] (416) 359-4641 positive dividend growth – Exhibit 1. Tiberiu Stoichita o A larger global list is found here. [email protected] (416) 359-4684 • For balance, and for those that are spotting the rain in the weekend David Cheng [email protected] (416) 359-7383 forecast, we will cover the waterfront, and highlight the momentum sells in the weakest subindustries for North America here and for global portfolios here. Legal Entity: BMO Nesbitt Burns Inc. • Rain or shine… Quantitative/Technical Research Website

I cover the waterfront, I'm watching the sea Billie Holiday (covered by many others, but our favorite is the Van Morrison & John Lee Hooker duet)

Exhibit 1: Otis Redding Collection – See Link for Full List

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

27 09:04 ET | 09:04 ET˜ August 3, 2017

Trends & Inflection Points

Utilities - One of My Turns Quantitative/Technical

• We are going back to tidy up our note from two days ago, where we Mark Steele Analyst highlighted utilities as the sector having the best relative strength [email protected] (416) 359-4641 breadth, taking that mantle from technology. When we went positive Tiberiu Stoichita on miners, and wanted to cover shorts in energy, it’s natural to think [email protected] (416) 359-4684 that this move towards commodities would negatively impact long David Cheng duration treasuries, and their equity cousin, utilities. That, however, is [email protected] (416) 359-7383 not the case. Treasuries and utilities have firmed, not faltered – Exhibits 1-4. Legal Entity: BMO Nesbitt Burns Inc. Do you think it's time I stopped? Why are you running away? Pink Floyd, One of My Turns Quantitative/Technical Research Website

Exhibit 1: US Long Term Bond Price Index (Underlying for TLT US) Exhibit 2: MSCI World Utilities vs MSCI World

Exhibit 3: North American Utilities vs MSCI North America

Exhibit 4: EAFE Utilities vs MSCI EAFE

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

28 08:13 ET | 08:13 ET˜ August 2, 2017

Trends & Inflection Points

Canadian Momentum Buys Quantitative/Technical

• The Canadian equity market has seen better days. Large cap Mark Steele Analyst benchmarks are meandering slightly lower, and the small cap index [email protected] (416) 359-4641 is trending lower at a more substantial rate. But there are always a Tiberiu Stoichita group of stocks that look good technically (and 40% of the list gets a [email protected] (416) 359-4684 nod from our fundamental analysts too) - Exhibit 1. David Cheng [email protected] (416) 359-7383 Legal Entity: BMO Nesbitt Burns Inc.

Quantitative/Technical Research Website

Exhibit 1: Canadian Momentum Buys (Dividend Adjusted Price Trends Are Higher, Above Rising Moving Averages And Not Overbought)

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

29 07:50 ET | 07:50 ET˜ August 1, 2017

Trends & Inflection Points

Growth vs Value – Another Break in the Wall Quantitative/Technical

• Utilities, yes utilities nudged ahead of technology in our global Mark Steele Analyst relative strength breadth heat map yesterday. One thing we know [email protected] (416) 359-4641 about utilities is that they do not screen well for growth. So we flip to Tiberiu Stoichita our growth vs value ratios, and indeed see breakdowns in global and [email protected] (416) 359-4684 US Small cap ratios, and a pre-breakdown pullback in the US large cap David Cheng ratio – Exhibits 1, 2. [email protected] (416) 359-7383 • Anytime there is a break in a trend, our system asks you to consider whether that is a Legal Entity: BMO Nesbitt Burns Inc. buying opportunity, or a stop loss point. There is no question, we are leaning more towards stop loss here, and the more breaks in the wall we see, the more confidence Quantitative/Technical Research Website we have in the call. But buy vs sell is your call. We just point em out- Exhibit 3, 4.

Tell me is something eluding you, sunshine? In the Flesh, Pink Floyd

Exhibit 1: MSCI World Growth vs Value Exhibit 2: Russell 2000 Growth vs Value

Exhibit 3: Largest 20 R1k Growth Stocks with Severed Price Uptrends Exhibit 4 - Largest 20 R2k Growth Stocks with Severed Price Uptrends

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

30 08:11 ET | 08:11 ET˜ July 31, 2017

Trends & Inflection Points

These Eyes Have Seen a Lot of Loves Quantitative/Technical

• From a Canadian standpoint, where the portfolio is domiciled in Mark Steele Analyst loonies, your globetrotting portfolio has seen a lot of loves. However, [email protected] (416) 359-4641 those lovely trends trends are breaking lower, and that 50bps hit that Tiberiu Stoichita Canadian large caps gave you on Friday, was the least harmful in the [email protected] (416) 359-4684 global book – Exhibit 1. There would be similar views in iron ore David Cheng fueled Aussie dollars or Chinese Renminbi, where the call from on [email protected] (416) 359-7383 high is to bring the money back home, but it’s broader than that even still. Clearly, Legal Entity: BMO Nesbitt Burns Inc. when all majors are strengthening against the USD, it is the USD that comes into question. From our perspective, we are going to have to see evidence of some Quantitative/Technical Research Website discipline and order, leading to political and economic functionality before considering that the trajectory, which would lead to a 40% decline over the term of the current US presidency, will weaken and stop the hurt in portfolios that are still dancing the globetrot. And you broke it, and you broke it, oh no The Guess Who

Exhibit 1: Global Equity Indices in Canadian Dollars

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

31 08:31 ET | 08:31 ET˜ July 28, 2017

Trends & Inflection Points

Time to Roam Around Quantitative/Technical

• OK, all you see on the equity index screen this morning is red, but Mark Steele Analyst look a little closer and you will see some green. All global sectors but [email protected] (416) 359-4641 real estate are off, and it’s not that real estate is rebounding from Tiberiu Stoichita oversold; it actually just broke out to new highs. For clients with a US [email protected] (416) 359-4684 centric perspective, realize that it is World ex US, Europe, and UK David Cheng markets that are in outperforming trends vs. the World – Exhibit 1. [email protected] (416) 359-7383 • Those indices actually cover over the fact that the greatest "rotation in" signal we see is Legal Entity: BMO Nesbitt Burns Inc. very much US-centric. We’ve been harping on buying Energy for three days now, and the real estate equivalent of that is retail. How does massively underperforming retail Quantitative/Technical Research Website look from a real estate perspective? Like there is massive rotation in – Exhibit 2. The v- bottom charts here are simply spectacular, and we must say that we are a bit tardy bringing this to your attention because the shares, while still a few percentages below falling moving averages, also have overbought Bollinger bands, and sport RSIs in the 70s. So watch the list and tools that update daily – see LLL, before you bite and beach your capital upon this new haven (yet keep currency in mind). I'm just roaming around. Just a wandering worker, I go from town to town. Woody Guthrie, Ain’t Got No Home Exhibit 1: FTSE Gbl Real Estate Index With Regions vs. Bench in Insert Exhibit 2: Retail REITs vs. FTSE Global REIT Index (Macro View Shown)

Exhibit 3: Underperforming Retail REITSs Breaking Above Underperforming Trends (Micro View Shown)

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

32 09:00 ET | 09:00 ET˜ July 27, 2017

Trends & Inflection Points

US Treasuries : Base Case & The Oil Hedge Quantitative/Technical

• Here is a link to our most recent macro slide deck. You will find, Mark Steele Analyst therein, that we are sticking to our base case that calls for negative [email protected] (416) 359-4641 US long rates 1-8 years out based on the secular downtrend, which Tiberiu Stoichita sadly, is looking more and more to be central bank induced – see [email protected] (416) 359-4684 here, here, here, and here – Exhibit 1. David Cheng • The threats to this trend, are that (a) the FED decides to do a Bank of [email protected] (416) 359-7383 Canada switcheroo (wow that’s a real word) and aggressively jawbone tightening (but Legal Entity: BMO Nesbitt Burns Inc. we really doubt that will happen), or (b) oil starts to firm aggressively (wildcard). On that second item (and this being our third consecutive note on energy: see here, and Quantitative/Technical Research Website here), 12m WTI broke above a downtrend yesterday, and while the bond market cared not a whit about oil for most of this year, the long end of the curve started to rhyme with oil over the past 30 days – Exhibit 3.

o Your hedge against the base case of lower long rates is an allocation towards energy. You don’t need to own it. Renting is fine. “You don't have to stay too long” Angel, Rent

Exhibit 1: The Secular Downtrend of the US 10Y Bond Yield - Shaded Area Showing the Zero/Negative Yield Target 1-8Years Out (Base Case)

Exhibit 2: 12Month WTI Exhibit 3: 12Month WTI, US 30y Bond Yield; 30d Correlation of Returns

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

33 01:58 ET | 01:58 ET˜ July 26, 2017

Trends & Inflection Points

Energy, Reflation Trade, SMID, and More Energy Quantitative/Technical

• We will start with Energy, to follow up our call yesterday to cover Mark Steele Analyst shorts. Yesterday’s positive reversal in ACWI Energy is actually the [email protected] (416) 359-4641 second one. The first came exactly one week ago, and since then Tiberiu Stoichita we’ve had a pullback and positive test of the 50d MA – Exhibit 1. [email protected] (416) 359-4684 • Oil, is not center stage in commodity land this week, copper is, but David Cheng what we care on most, what we consider the reflation trade, or the [email protected] (416) 359-7383 lack thereof, which impacts long rates, and the current sloppiness in growth vs value is Legal Entity: BMO Nesbitt Burns Inc. the CRB Raw Industrials, which is worth a look after six months of churn. We doubt that this churn continues. Put this one on your watch list (updates in BMO Macro) – Exhibit 2. Quantitative/Technical Research Website • Reflation is typically good for small caps versus large caps, and you saw the positive reversal in resource-oriented Canada last week. This positive reversal showed up in the US small cap market yesterday – Exhibit 3. • We will end with energy, because you are asking. Here are the energy stocks breaking above underperforming trends vs. ACWI Energy. There are some good stop (shorting) and reverse (go long) trades to consider here – Exhibit 4. But you can smell, and the sound of waves crash down Where Are You Going, Dave Matthews Band

Exhibit 1: ACWI Energy Exhibit 2: CRB Raw Industrials

Exhibit 3: Russell 2k vs Russell 3k (and Other Small/Large in Insert) Exhibit 4 – Stocks Reversing Underperforming Trends vs ACWI Energy See Link for Full List

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit 34 08:15 ET | 08:15 ET˜ May 7, 2017

Focal Points

Quiet Quantitative/Technical

Mark Steele Analyst  Technically, the Renminbi is at the apex of a pennant, which we expect will break to [email protected] (416) 359-4641 the weakening side, in the direction that the Hong Kong dollar has recently been Tiberiu Stoichita moving since early January – Exhibit 1. [email protected] (416) 359-4684  Quantitatively, the expected break may be the signalling, which brings to light an David Cheng upcoming slowdown (see references to the leading indication of credit impulse [email protected] (416) 359-7383 below) in Chinese demand for raw materials, which may compound the supply problem in oil, which may lead to lower oil prices, which may lead to lower inflation Legal Entity: BMO Nesbitt Burns Inc. expectations, which may lead to lower long duration treasury yields, which may continue to lead the yield curve lower, which may continue to pressure the relative performance of U.S. banks, which may continue to pressure the performance of the S&P 500 against the world, which was foreshadowed by the state of resource heavy Canadian equity market against the world.  Enjoy the rest of your weekend. We do offer up some interesting reading material, given the damp chilly weather out there…

References for “Credit Impulse” 1. Credit and economic recovery; Michael Biggs, Thomas Mayer, Andreas Pick; DNB Working Paper No. 218 July 2009 2. China’s Continuing Credit Boom; Jeff Dawson, Alex Etra and Aaron Rosenblum; Liberty Street Economics; February 27, 2017 3. China’s Credit Slowdown Poses a Threat to Global Growth; WSJ May 1, 2017 4. Recent Articles associated with Gene Frieda: PIMCO May 2, 2017, FT May 4, 2017, SCMP May 5, 2017 5. World Bank warns of China debt risk from backdoor local borrowing, FT May 6, 2017

“There's zero correlation between being the best talker and having the best ideas.”

Susan Cain, Quiet

Exhibit 1: Chinese Renminbi

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

35 19:17 ET | 19:17 ET˜ April 23, 2017

Focal Points

Tut-Tut, it Looks Like Rein Quantitative/Technical

 On Friday, treasury volatility reached the point where we can quantify it as being Mark Steele Analyst panicked, or above the top end of its range – Exhibit 1. Our system now begs the [email protected] (416) 359-4641 question, “Is this extreme to be faded, or is this the sign of a regime change?” Tiberiu Stoichita o This is not panic selling of treasuries; it is panic buying, which is by far the more common affliction witnessed over the past several years – Exhibit 2. [email protected] (416) 359-4684 o This escalation of treasury volatility, which has culminated in Friday’s signal, David Cheng has been going on for a month now, and as such, appears to be “episodic”, [email protected] (416) 359-7383 like those of the past few years. The last time we had a bond panic buying Legal Entity: BMO Nesbitt Burns Inc. “regime” was in 2014-15. During that period of considerable duration, bond folk were panic buyers for quite some time before turning into panic sellers. Importantly, the buying phase was also coupled with a dive in oil prices, which ultimately led to OPEC production cuts. . We are in the OPEC production cut era now, and really in the second chapter of this era;  Chapter 1 narrative entailed belief that OPEC cuts could make a difference in U.S. production.  In March, and again last week as WTI cracked back below $50, we have been reading the market as being in chapter 2, where the reality of shale staying power sets in. But there is more to this story.  To bring in other Market Elements; alongside the panic buying of treasuries, observed as higher volatility with yields rolling over, we observe industrial metals rolling over, oil rolling over, and finally inflation expectations rolling over. This roll has also been aligned with Chinese monetary conditions rolling over, or perhaps better put, being reined in– Exhibit 3. If this rein/roll continues, and we expect that it will, our bond panic buying inflection point signals the regime change, which can be backdated one month prior. I'm just a little black rain cloud Robert & Richard Sherman, 1966

Exhibit 1: US Treasury Volatility (MOVE) Exhibit 3: The Seeding of a Rein Cloud

Exhibit 2: US 30y Bond Yield and Treasury Volatility

Source: All charts BMO Capital Markets, Bloomberg

Source: All charts/tables BMO Capital Markets, Bloomberg, Thomson, Markit 36 14:37 ET | 14:37 ET˜ April 16, 2017

Focal Points

The Wisdom of Sweet Brown Quantitative/Technical

Mark Steele Analyst  We can give you the knowledge that on Friday the MSCI All Country World [email protected] (416) 359-4641 Index broke an uptrend, and that the NASDAQ did too, and that the cost to protect a basket of Life & Health Insurers broke to the upside that very day, Tiberiu Stoichita and finally that the US 30y yield just broke yield support and has entered its [email protected] (416) 359-4684 “thinking fast” air pocket (Exhibits 1-4), but that would not impart wisdom. David Cheng  Wisdom would come from realizing how these seemingly disparate events are [email protected] (416) 359-7383 related as markets head back towards the zero bound in rates. Legal Entity: BMO Nesbitt Burns Inc.  We view these equity breakdowns as stop loss considerations, rather than buy the dip opportunities and continue to recommend being long duration.

o Here’s some Sunday night reading for you; new stuff from Ben and old stuff from BIS.

“Well, I woke up to get me a cold pop and then I thought somebody was barbecuing. I said, ‘Oh Lord Jesus, it’s a fire.’ Then I ran out, I didn’t grab no shoes or nothing, Jesus. I ran for my life and then the smoke got me, I got bronchitis! Ain’t nobody got time for that.” Sweet Brown

Exhibit 2: NASDAQ Composite (CCMP) Exhibit 1: MSCI All Country World Index (MXWD)

Exhibit 3: Global Life & Health Insurance Ave 5y CDS Exhibit 4: US 30y Bond Yield

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

37 15:44 ET | 15:44 ET˜ March 19, 2017

Focal Points

Treasury Bear? You Have Been Soft Served Quantitative/Technical

Mark Steele Analyst • Soft serve is a type of ice cream that is softer than regular ice creams as a result of [email protected] (416) 359-4641 air being introduced during freezing. The long end of the treasury curve is being air jacked, with its own serving of soft data (top). Of course the hard data may come, Tiberiu Stoichita and the market can continue to sell treasuries, and that 30 year downtrend in [email protected] (416) 359-4684 yields can indeed break, and so on and so forth. But that’s not what typically David Cheng happens. Typically, when a tall serving of soft serve data is laden upon a small [email protected] (416) 359-7383 cone of hard data the soft stuff melts quickly, and runs down those little hands Legal Entity: BMO Nesbitt Burns Inc. (middle). Inflated treasury yields tend to deflate again and again (bottom). • The greatest argument we can envisage, which would end the 30 year bull market in treasuries (not what we expect), comes from Borio’s paper (BIS) which argues that central banks should target imbalances which have been created by central banks’ own asymmetric behavior, rather than targeting the inflationary signal that never comes (Becket). Yet the central bank dissention we heard from last week was nothing of that sort. It was all, oh inflation is too strong (BoE), or oh inflation too weak (FED). We did not hear central bankers suggest that they have had their eye on the wrong ball. So until the market tells us that there is a paradigm shift, we will expect that the horror of negative US long rates will be on our doorsteps as early as next year (extrapolation of the trend, at the minus two standard deviation mark), and not that the horror of imbalances becoming unwound by said overseers will be upon us any time soon (the inflection point of a reversal driven by a ‘new and improved’ central bank targeting). It’s kinda like choosing one horror (yes you saver, that kid with the huge mortgage is being paid by the banks to own it), rather than the other (what is the Canadian way to spell foreclosure? +250bps eh). • We will continue to mindfully follow the trend, until we have to respect the inflection point. o We continue to expect that treasury yields will eventually roll over. The current soft-hard outlier is a massive signal. . You have been served.

Exhibit 1: US Economic Surprise: Soft Survey Data vs Hard Data (Industrial, Labour, Retail, Housing) and US 10Y Treasury Yield

Source: BMO Capital Markets, Bloomberg

38 17:06 ET | 17:06 ET˜ IMPORTANT DISCLOSURES Analyst's Certification I, Mark Steele, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients. Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications 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 http://researchglobal.bmocapitalmarkets.com/Public/ Company_Disclosure_Public.aspx.

ETF Related Disclosures As an authorized participant or otherwise, BMO Capital Markets acquires securities from the issuers for the purposes of resale. BMO Capital Markets and its affiliates seek to provide brokerage services to, and do other business with, ETFs covered by this report. BMO Capital Markets and its affiliates seek to enter into securities and other transactions on a principal basis with, and may borrow securities from, ETFs covered by this 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 occur until it has received, in aggregate, subscriptions sufficient to satisfy the TSX’s original listing requirements. BMO Nesbitt Burns Inc., an affiliate of 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 and there is no maximum number of units that may be issued. BMO Asset Management is the trustee, manager, portfolio manager, promoter and valuation agent of the BMO ETFs and is responsible for the administration of the BMO ETFs. Unitholders may redeem Units for cash, subject to a redemption discount. Unitholders may also exchange a Prescribed Number of Units (or integral multiple thereof) for Baskets of Securities of the Constituent Issuers held by each BMO ETF and cash, or, with respect to certain BMO ETFs, cash only. Securities legislation in certain Canadian provinces prohibits registrants from recommending, or cooperating with any other person in recommending, in any circular, pamphlet or similar publication that is distributed with reasonable regularity in the ordinary course of its business, that securities of the registrant or a related issuer, or in the case of a distribution, that securities of a connected issuer, be purchased, sold or held unless such publication contains a statement of the relationship or connection between the registrant and the issuer. BMO Nesbitt Burns Inc. is an indirect wholly-owned subsidiary of Bank of Montreal. Accordingly, Bank of Montreal is a related and connected issuer of BMO Nesbitt Burns Inc. TO U.S. RESIDENTS: This publication, to the extent it refers to Bank of Montreal securities, has not been approved or distributed by BMO Capital Markets Corp. or BMO Nesbitt Burns Securities Ltd. and affiliates of BMO Nesbitt Burns Inc. It is intended for distribution in the U.S. by BMO Nesbitt Burns Inc. only to Major U.S. Institutional Investors (as defined in SEC Rule 15a-6 under the Securities Exchange Act of 1934, as amended). Investors should consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. The prospectus for the ETF contains this and other information about the investment company and should be read carefully before investing. Clients may obtain prospectuses for the ETFs mentioned in this report from the ETF distributor or the exchange upon which it is listed. This report is not a 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 of commodities. 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 index known as tracking error. A variety of factors can create a performance gap between ETF and its target index such as the impact of transaction fees and expenses incurred by the ETF, changes in composition of the underlying index/assets, the ETF portfolio manager’s replication strategy and sampling techniques, and the timing of purchases and redemptions of ETF’s shares. Inverse and Leveraged ETFs: Most leveraged ETFs seek to 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 would ordinarily expect.

39 Distribution of Ratings (August 28, 2017)

Rating category BMOCM US BMOCM US IB BMOCM US IB BMOCM BMOCM IB StarMine BMO rating Universe* Clients** Clients*** Universe**** Clients***** Universe Buy Outperform 45.3% 22.1% 58.8% 47.5% 59.4% 53.9% Hold Market Perform 51.7% 13.3% 40.2% 49.4% 38.9% 41.1% Sell Underperform 3.0% 5.9% 1.0% 2.9% 1.2% 5.0%

* Reflects rating distribution of all companies covered by BMO Capital Markets Corp. equity research analysts. ** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as percentage within ratings category. *** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as percentage of Investment Banking clients. **** Reflects rating distribution of all companies covered by BMO Capital Markets equity research analysts. ***** Reflects rating distribution of all companies from which BMO Capital Markets has received compensation for Investment Banking services as percentage of Investment Banking clients. 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; and R = Restricted - Dissemination of research is currently restricted. BMO Capital Markets' seven Top 15 lists guide investors to our best ideas according to different objectives (CDN Large Cap, CDN Small Cap, US Large Cap, US Small Cap, Income, CDN Quant, and US Quant have replaced the Top Pick rating). Prior BMO Capital Markets Rating System (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 http://researchglobal.bmocapitalmarkets.com/Public/ Company_Disclosure_Public.aspx or write to Editorial Department, BMO Capital Markets, 3 Times Square, New York, NY 10036 or Editorial Department, BMO Capital Markets, 1 First Canadian Place, Toronto, Ontario, M5X 1H3. Dissemination of Research Dissemination of BMO Capital Markets Equity Research is available via our website https://research-ca.bmocapitalmarkets.com/Public/Secure/ Login.aspx? ReturnUrl=/Member/Home/ResearchHome.aspx. Institutional clients may also receive our research via Thomson Reuters, Bloomberg, FactSet, and Capital IQ. Research reports and other commentary are required to be simultaneously disseminated internally and externally to our clients. ~ Research distribution and approval times are provided on the cover of each report. Times are approximations as system and distribution processes are not exact and can vary based on the sender and recipients’ services. Unless otherwise noted, times are Eastern Standard and when two times are provided, the approval time precedes the distribution time. BMO Capital Markets may use proprietary models in the preparation of reports. Material information about such models may be obtained by contacting the research analyst directly. There is no planned frequency of updates to this report. General Disclaimer "BMO Capital Markets" is a trade name used by the BMO Investment Banking Group, which includes the wholesale arm of Bank of Montreal and its subsidiaries BMO Nesbitt Burns Inc., BMO Capital Markets Limited in the U.K. and BMO Capital Markets Corp. in the U.S. BMO Nesbitt Burns Inc., BMO Capital Markets Limited and BMO Capital Markets Corp are affiliates. Bank of Montreal or its subsidiaries ("BMO Financial Group") has lending arrangements with, or provide other remunerated services to, many issuers covered by BMO Capital Markets. The opinions, estimates and projections contained in this report are those of BMO Capital Markets as of the date of this report and are subject to change without notice. BMO Capital Markets endeavours to ensure that the contents have been compiled or derived from sources that we believe are reliable and 40 contain information and opinions that are accurate and complete. However, BMO Capital Markets makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to BMO Capital Markets or its affiliates that is not reflected in this report. The information in this report is not intended to be used as the primary basis of investment decisions, and because of individual client objectives, should not be construed as advice designed to meet the particular investment needs of any investor. Nothing herein constitutes any investment, legal, tax or other advice 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 should obtain independent professional advice. This material is for information purposes only and is not an offer to sell or the solicitation of an offer to buy any security. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report on a principal basis. BMO Capital Markets or its affiliates, officers, directors or employees have a long or short position in many of the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. The reader should assume that BMO Capital Markets or its affiliates may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or sell securities of issuers discussed herein. Additional Matters To Canadian Residents: BMO Nesbitt Burns Inc. furnishes this report to Canadian residents and accepts responsibility for the contents herein subject to the terms set out above. Any Canadian person wishing to effect transactions in any of the securities included in this report should do so through BMO Nesbitt Burns Inc. The following applies if this research was prepared in whole or in part by Andrew Breichmanas, Alexander Pearce, David Round, Edward Sterck or Brendan Warn: This research is not prepared subject to Canadian disclosure requirements. This research is prepared by BMO Capital Markets Limited and subject to the regulations of the Financial Conduct Authority (FCA) in the United Kingdom. FCA regulations require that a firm providing research disclose its ownership interest in the issuer that is the subject of the research if it and its affiliates own 5% or more of the equity of the issuer. Canadian regulations require that a firm providing research disclose its ownership interest in the issuer that is the subject of the research if it and its affiliates own 1% or more of the equity of the issuer that is the subject of the research. Therefore BMO Capital Markets Limited will disclose its and its affiliates' ownership interest in the subject issuer only if such ownership exceeds 5% of the equity of the issuer. To E.U. Residents: In an E.U. Member State this document is issued and distributed by BMO Capital Markets Limited which is authorised and regulated in the UK and operates in the E.U. on a passported basis. This document is only intended for Professional Clients, as defined in Annex II to “Markets in Financial Instruments Directive” 2004/39/EC (“MiFID”). To U.S. Residents: BMO Capital Markets Corp. furnishes this report to U.S. residents and accepts responsibility for the contents herein, except to the extent that it refers to securities of Bank of Montreal. Any U.S. person wishing to effect transactions in any security discussed herein should do so through BMO Capital Markets Corp. To U.K. Residents: In the UK this document is published by BMO Capital Markets Limited which is authorised and regulated by the Financial Conduct Authority. The contents hereof are intended solely for the use of, and may only be issued or passed on to, (I) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (II) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together referred to as "relevant persons"). The contents hereof are not intended for the use of and may not be issued or passed on to retail clients. These documents are provided to you on the express understanding that they must be held in complete confidence and not republished, retransmitted, distributed, disclosed, or otherwise made available, in whole or in part, directly or indirectly, in hard or soft copy, through any means, to any person, except with the prior written consent of BMO Capital Markets. Click here for data vendor disclosures when referenced within a BMO Capital Markets research document.

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