Vialoux's Technical Talk: April 28, 2014

Economic News This Week

February Case Shiller 20 City Home Price Index to be
released at 9:00 AM EDT on Tuesday is expected to slip on a
year-over-year basis to 13.0% from 13.2% in January.

April Consumer Confidence to be released at 10:00 AM
EDT on Tuesday is expected to improve to 83.6 from 82.3 in
January.

April ADP Employment Report to be released at 8:15 AM
EDT on Wednesday is expected to increase to 215,000 from
191,000 in March.

First estimate of First Quarter Real GDP to be
released at 8:30 AM EDT on Wednesday is expected to increase
1.0% versus an increase of 2.6% in the fourth quarter.

February Canadian GDP to be released at 8:30 AM EDT on
Wednesday is expected to increase 0.2% from January versus a
gain of 0.5% from December to January.

April Chicago Purchasing Managers Index to be released
at 9:45 AM EDT on Wednesday is expected to increase to 56.5
from 55.9 in March.

FOMC Meeting results to be released at 2:00 PM EDT on
Wednesday is expected to confirm another $10 billion
reduction in monthly Treasury/Mortgage backed securities.

Weekly Initial Jobless Claims to be released at 8:30
AM EDT on Thursday are expected to slip to 315,000 from
329,000 last week.

March Personal Income to be released at 8:30 AM EDT on
Thursday is expected to increase 0.4% versus a gain of 0.3%
in February. March Personal Spending is expected to
increase 0.6% versus a gain of 0.3% in February.

April ISM to be released at 10:00 AM EDT on Thursday
is expected to increase to 54.5 from 53.7 in March.

March Construction Spending to be released at Thursday
is expected to increase 0.4% versus a gain of 0.1% in
February.

April Non-farm Payrolls to be released at 8:30 AM EDT
on Friday are expected to increase to 210,000 from 192,000 in
March. Private Payrolls are expected to increase
205,000 from 192,000 in March. The April Unemployment
Rate is expected to dip to 6.6% from 6.7% in March.
April Hourly Earnings are expected to increase 0.2%
versus no change in March.

March Factory Orders to be released at 10:00 AM EDT on
Friday are expected to increase 1.6% versus a gain of 1.6% in
February.

Earnings News This Week

Equity Trends

The S&P 500 Index slipped 1.45 points (0.08%) last
week. Trend remains neutral. The Index remains (just)
above its 20 day moving average. Short term momentum
indicators are mixed.

Percent of S&P 500 stocks trading above their 50 day
moving average fell last week to 53.80% from 56.20%.
Percent is trending down.

Percent of S&P 500 stocks trading above their 200 day
moving average dropped to 79.20% from 82.00%. Percent
remains intermediate overbought and trending down.

Bullish Percent Index for S&P 500 stocks improved last
week to 68.20% from 66.20%, but remained below its 15 day
moving average. The Index remains intermediate overbought and
trending down.

Bullish Percent Index for TSX stocks increased last week
to 82.45% from 80.82% and remains above its 15 day moving
average. The Index remains intermediate overbought.

The TSX Composite Index added 33.18 points (0.23%) last
week. Intermediate trend remains up (Score: 1.0). The
Index remains above its 20 day moving average (Score: 1.0).
Strength relative to the S&P 500 Index remains positive
(Score: 1.0). Technical score remains at 3.0 out of 3.0.
Short term momentum indicators are overbought.

Percent of TSX Composite stocks trading above their 50 day
moving average increased last week to 67.21% from 63.52%.
Percent remains intermediate overbought.

Percent of TSX Composite stocks trading above their 200
day moving average increased last week to 81.15% from
79.92%. Percent remains intermediate overbought.

The Dow Jones Industrial Average fell 47.08 points (0.41%)
last week. Trend remains neutral. The Average fell below
its 20 day moving average on Friday. Strength relative to the
S&P 500 Index changed from positive to neutral. Technical
score slipped to 2.0 from 2.5 out of 3.0. Short term momentum
indicators are mixed.

Bullish Percent Index for Dow Jones Industrial Average was
unchanged last week at 66.67% and remained below its 15
day moving average. The Index remains overbought and trending
down.

Bullish Percent Index for NASDAQ Composite stock increased
last week to 54.45% from 53.91%, but remains below its 15
day moving average. The Index remains overbought and trending
down.

The NASDAQ Composite Index dropped 19.76 points (0.48%)
last week. Intermediate trend remains down. The Index
remains below its 20 day moving average. Strength relative to
the S&P 500 Index remains negative. Technical score
remains at 0.0 out of 3.0. Short term momentum indicators are
mixed.

The Russell 2000 Index fell 14.87 points (1.31%) last
week. Intermediate trend remains down. The Index remains
below its 20 day moving average. Strength relative to the
S&P 500 Index remains negative. Technical score remains
at 0.0 out of 3.0. Short term momentum indicators are mixed.

The Dow Jones Transportation Average dropped 48.28 points
(0.63%) last week. Intermediate trend changed from
neutral to up on a move above 7,715.91. The Average remains
above its 20 day moving average. Strength relative to the
S&P 500 Index remains positive. Technical score improved
to 3.0 from 2.5 out of 3.0.

The Australia All Ordinaries Composite Index added 70.70
points (1.30%) last week. Intermediate trend remains up.
The Index remains above its 20 day moving average. Strength
relative to the S&P 500 Index remains positive. Technical
score remains at 3.0 out of 3.0. Short term momentum
indicators are trending up.

The Nikkei Average added 11.73 points (0.08%) last
week. Intermediate trend remains down. The Index remains
below its 20 day moving average. Strength relative to the
S&P 500 Index remains negative. Technical score remains
at 0.0 out of 3.0. Short term momentum indicators are mixed.

iShares Europe 350 units added $0.10 (0.21%) last
week. Intermediate trend remains up. Units remain above
their 20 day moving average. Strength relative to the S&P
500 Index remains positive. Technical score remains at 3.0
out of 3.0. Short term momentum indicators are overbought.

The Shanghai Composite Index fell 63.26 points (2.97%)
last year. Intermediate trend remains up. The Index fell
below its 20 day moving average. Strength relative to the
S&P 500 Index changed from positive to neutral. Technical
score fell to 1.5 from 3.0 out of 3.0. Short term momentum
indicators are trending down.

iShares Emerging Markets fell $1.19 (2.83%) last week.
Intermediate trend is up. Units fell below their 20 day
moving average. Strength relative to the S&P 500 Index
changed from positive to negative. Technical score fell to
1.0 from 3.0 out of 3.0. Short term momentum indicators are
trending down.

Currencies

The U.S. Dollar slipped 0.11 (0.14%) last week.
Intermediate trend remains neutral. The Dollar remains below
its 20, 50 and 200 day moving averages. Short term momentum
indicators are mixed.

The Euro added 0.18 (0.13%) last week. Intermediate
trend remains up. The Euro remains above its 20 day moving
average. Short term momentum indicators are mixed.

The Canadian Dollar fell 0.17 (0.19%) last week.
Intermediate trend remains neutral. The Canuck Buck fell
below its 20 day moving average. Short term momentum
indicators are trending down.

The Japanese Yen added 0.26 (0.27%) last week.
Intermediate trend remains down. The Yen remains above its 20
day moving average. Short term momentum indicators are mixed.

Commodities

The CRB Index slipped 0.77 (0.25%) last week.
Intermediate trend remains up. The Index remains above its 20
day moving average. Strength relative to the S&P 500
Index remains positive. Technical score remains at 3.0.

Gasoline fell $0.03 per gallon (0.98%) last week.
Intermediate trend remains up. Gasoline remains above its 20
day moving average. Strength relative to the S&P 500
Index remains positive. Technical score remains at 3.0.

Crude Oil fell $3.69 per barrel (3.54%) last week.
Intermediate trend remains neutral. Crude fell below its 20,
50 and 200 day moving averages on Friday. Strength relative
to the S&P 500 Index changed from positive to neutral.
Technical score fell to 1.5 from 3.0 out of 3.0. Short term
momentum indicators are trending down.

Natural Gas fell $0.10 (2.11%) last week. Trend
changed from down to neutral on a move above $4.74. Gas
remains above its 20 day moving average. Strength relative to
the S&P 500 Index changed from positive to neutral.
Technical score remained at 2.0 out of 3.0. Short term
momentum indicators are trending up.

The S&P Energy Index added 2.50 (0.37%) last week.
Intermediate trend remains up. The Index remains above its 20
day moving average. Strength relative to the S&P 500
Index remains positive. Technical score remains at 3.0 out of
3.0. Short term momentum indicators are overbought.

The Philadelphia Oil Services Index slipped 1.51 points
(0.51%) last week. Intermediate trend remains up. The
Index remains above its 20 day moving average. Strength
relative to the S&P 500 Index remains positive. Technical
score remains at 3.0 out of 3.0. Short term momentum
indicators are overbought and showing early signs of rolling
over.

Gold gained $8.60 per ounce (0.66%) last week.
Intermediate trend changed from up to down on a move below
$1,277.40. Gold moved above its 20 day moving average.
Strength relative to the S&P 500 Index remains neutral.
Technical score remained at 1.5. Short term momentum
indicators are trending up.

The AMEX Gold Bug Index added 8.94 points (4.07%) last
week. Intermediate trend changed from neutral to down on
a move below 216.72. The Index moved above its 20 day moving
average. Strength relative to the S&P 500 Index and Gold
changed from negative to positive. Technical score improved
to 2.0 from 0.5 out of 3.0. Short term momentum indicators
are trending up.

Silver added $0.10 per ounce (0.51%) last week.
Intermediate trend remains down. Silver remains below its 20
day moving average. Strength relative to the S&P 500 and
Gold improved from negative to neutral. Technical score
improved to 0.5 from 0.0 out of 3.0. Short term momentum
indicators are trending up.

Platinum slipped $4.30 per ounce (0.30%) last week.
Trend changed from up to down on a move below 1,395.20.
Platinum remains below its 20 day MA. Strength relative to
the S&P 500 and Gold improved to neutral from negative.
Technical score slipped to 1.5 from 2.0.

Palladium gained $2.40 (2.97%) last week. Trend
remains up. Palladium remains above its 20 day moving
average. Strength relative to S&P and Gold remains
positive. Score: 3.0.

Copper gained $0.07 per lb. (2.30%) last week.
Intermediate trend changed from down to up on a move above
$3.07. Copper remains above its 20 day moving average.
Strength relative to the S&P 500 Index changed from
neutral to positive. Technical score improved to 3.0 from
1.5. Short term momentum indicators are trending up.

The TSX Metals & Minerals Index gained 24.27 points
(2.90%) last week. Trend changed from down to neutral on
Friday on a move above 864.32. The Index remains above its 20
day moving average. Strength relative to the S&P 500
Index remains positive. Technical score improved to 2.5 from
2.0 out of 3.0. Short term momentum indicators are
overbought.

Lumber added $5.90 (1.79%) last week. Trend remains
negative. Lumber moved above its 20 day MA. Strength relative
to the S&P 500 Index remains neutral.

The Grain ETN added $0.81 (1.60%) last week. Trend
remains up. Units remain above their 20 day moving average.
Strength relative to the S&P 500 Index remains positive.
Technical score remains at 3.0 out of 3.0.

The Agriculture ETF slipped $0.11 (0.20%) last week.
Intermediate trend remains up. Units remain above their 20
day moving average. Strength relative to the S&P 500
Index changed from positive to neutral. Technical score
slipped to 2.5 from 3.0 out of 3.0. Short term momentum
indicators are mixed.

Interest Rates

The yield on 10 year Treasuries fell 5.5 basis points
(2.02%) last week. Yield remains below its 20 and 50 day
moving averages. Short term momentum indicators are mixed.

Conversely, price of the long term Treasury added $1.29
(1.16%) last week. Intermediate trend remains up. Units
remain above their 20 day moving average.

Other Issues

The VIX Index added 0.78 (5.84%) last week. The Index
remains below its 20, 50 and 200 day moving averages.

First quarter reports by U.S. companies continue to pour
in. Earnings are slightly beating consensus. Revenues are
slightly below consensus. With some exceptions, responses
have been relatively negative. First quarter reports by
Canadian companies start to pour in this week.

Economic news this week generally is expected to confirm
that the U.S. economy is recovering from weather weakened
first quarter results. Focus is on the April employment
report on Friday when a significant improvement over March is
anticipated.

The Federal Reserve is expected to maintain a policy of
tapering its asset purchases by $10 billion per meeting.

Short and intermediate technical indicators for most
markets and sectors are overbought and rolling over.

International focus is on the Ukraine/Russia conflict.
Other events to watch include China’s official PMI on
Wedneday (Consensus 50.5 versus 50.3) and the Eurozone PMI on
Friday (Consensus 53.3 versus 53.3).

U.S. equity markets historically have peaked this week
during Mid-term U.S. Presidential election years.

The Bottom Line

The S&P 500 Index, Dow Jones Industrial Average and
economic sensitive sectors (Technology, Industrials,
Materials) reached an intermediate peak on April
4^th and have struggled since then with increasing
volatility. In addition, their period of seasonal strength is
at or near the end. Strength is an opportunity to take
profits. Reductions in market and economic sensitive sectors
are prudent at current prices.

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considered as advice to purchase or to sell mentioned
securities. Data offered in this report is believed to be
accurate, but is not guaranteed. Don and Jon Vialoux are
Research Analysts with Horizons ETFs Management (Canada)
Inc.  All of the views expressed herein are the personal
views of the authors and are not necessarily the views of
Horizons ETFs Investment Management (Canada) Inc., although
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Horizons Seasonal Rotation ETF HAC April
25^th 2014