May Technical Review of Stocks UBS

Technical Review of Stocks CIO Wealth Management Research 5 May 2014

Peter Lee, Chief Technical [email protected]

+1-212-713-8888, ext.01

Broader list

This report provides technical analysis on stocks that, we believe, are of a wide interest. This list is not a template forthe construction of your personal portfolio. You should discuss investment decisions with your Financial Advisor. For more information about this report, see Description and Methodology in the Appendix. We would like to thank Venkat Badri, an employee of Cognizant Group, for his assistance in preparing this research report. Cognizant staff provides research support services to UBS.

This report has been prepared by UBS Financial Services Inc. (UBS FS). Analyst certification and required disclosuresbegin on page 44. UBS does and seeks to do business with companies covered in its research reports. As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making their investment decision.

Table of Contents Ticker Name Page Ticker Name PageAMGN AMGEN INC 4 JNJ JOHNSON & JOHNSON 22AMZN AMAZON.COM INC 4 KMB KIMBERLY-CLARK CORP 23APC ANADARKO PETROLEUM CORP 5 LB L BRANDS INC 23AZN ASTRAZENECA PLC 5 MCD MCDONALD'S CORP 24BAC BANK OF AMERICA CORP 6 MHFI MCGRAW HILL FINANCIAL 24BEN FRANKLIN RESOURCES INC 6 MMM 3M CO 25BMY BRISTOL-MYERS SQUIBB CO 7 MO ALTRIA GROUP INC 25BP BP PLC 7 MRK MERCK & CO 26 BRK.B BERKSHIRE HATHAWAY - CLASS B 8 NEE NEXTERA ENERGY INC 26C CITIGROUP INC 8 NSRGY NESTLE SA/AG 27CAT CATERPILLAR INC 9 NVS NOVARTIS AG 27CELG CELGENE CORP 9 ORCL ORACLE CORP 28COP CONOCOPHILLIPS 10 OXY OCCIDENTAL PETROLEUM CORP 28COST COSTCOWHOLESALE CORP 10 PEP PEPSICO INC 29CPB CAMPBELL SOUP CO 11 PFE PFIZER INC 29CSX CSX CORP 11 PG PROCTER & GAMBLE CO 30CTL CENTURYLINK INC 12 PM PHILIP MORRIS INTERNATIONAL 30CVS CVS CAREMARK CORP 12 RDSA ROYAL DUTCH SHELL PLC 31CVX CHEVRON CORP 13 SBUX STARBUCKS CORP 31D DOMINION RESOURCES INC 13 SLB SCHLUMBERGER LTD 32DD DU PONT (EI) DE NOMOURS 14 STJ ST JUDE MEDICAL INC 32DE DEERE AND CO 14 T AT&T INC 33DEO DIAGEO PLC 15 TEVA TEVA PHARMACEUTICALS 33DIS THE WALT DISNEY COMPANY 15 TGT TARGET CORP 34DOW DOW CHEMICAL 16 TOT TOTAL SA 34DUK DUKE ENERGY CORP 16 TRV TRAVELERS COS INC 35EMR EMERSON ELECTRIC CO 17 UNP UNION PACIFIC CORP 35EOG EOG RESOURCES INC. 17 UPS UNITED PARCEL SERVICE 36F FORD MOTOR CO 18 USB U.S. BANCORP 36FB FACEBOOK INC 18 V VISA INC-CLASS A 37GILD GILEAD SCIENCES INC 19 VOD VODAFONE GROUP PLC 37GIS GENERAL MILLS INC 19 VZ VERIZON COMMUNICATIONS INC 38GSK GLAXOSMITHKLINE PLC 20 WAG WALGREENS CO 38HD HOME DEPOT INC 20 WFC WELLS FARGO 39HON HONEYWELL INTERNATIONAL INC 21 WMT WAL-MART STORES INC 39IBM INTL BUSINESS MACHINES CORP 21 XOM EXXON MOBIL CORP 40ITW ILLINOIS TOOL WORKS INC 22

Technical Review of Stocks

CIO WM Research 4 May 2014 2

Changes since last report Additions Name Ticker

Technical Rating Changes Name Ticker Old New Amgen Corp. AMGN Bullish NeutralAmazon.com Inc. AMZN Bullish NeutralAnadarko Petroleum Corp. APC Neutral Bullish Banc of America Corp. BAC Bullish NeutralCampbell Soup Co. CPB Neutral Bullish CenturyLink Inc. CTL Bearish NeutralFacebook Inc. FB Bullish NeutralGeneral Mills GIS Neutral Bullish Royal Dutch Shell RDSA Neutral Bullish Starbucks Corporation SBUX Bullish NeutralTotal TOT Neutral Bullish United Parcel Service UPS Bullish NeutralVisa V Bullish Neutral



Amgen Inc. (AMGN)

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Price 10-Week Moving Average 30-Week Moving Average

Source: FactSet, UBS CIO WMR as of 01 May 2014 Support levels Resistance levels

First Second Third First Second Third 103-106 95-98 87-90 114.5-117 119-211.75 127.25-128.96

Technical rating Neutral Sector HealthCare

Last Sale Price $112.76

Rationale: A 12-plus year technical base breakout above 87 in late-2012 to early-2013 renders upside targets to the low-to-mid 130s, intermediate term and then to 143-145, longer term. This Biotech name rallied to 128.96 in Mar 2014 and stalled. An overbought condition coupled with recent violation of Feb 2013 uptrend (117-118), a negative outside week during 3/7/14 and a subsequent break of the pivotal Nov 2011 uptrend (110-111) now suggests a deeper correction and hence our downgrade to Neutral. Key initial support is 103-106 and then to the mid-to-high 90s.

Amazon.com Inc. (AMZN)

2010 2011 2012 2013 2014

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First Second Third First Second Third 287.5-288 259-266 241-245 316.25-322.95 337.5-343 360-380

Technical rating Neutral Sector C. Discretionary


Rationale: AMZN still maintains its longer term support near the 2008 uptrend at 266 and the 50%-61.8% retrace-ment from 2011-2014 rally at 259-287.5. Nonetheless, we recommend downgrading the intermediate term technical outlook to Neutral based on the following: (1) Two negative outside months during Jan/Mar 2014; (2) Negative outside days on 1/31/14 (375-388) and 4/25/14 (316-323); and (3) Violations of the 38.2% retracement from 2011-2014 rally at 316 and 2011 uptrend at 305. We suspect a large trading range is now likely between 259-266 and 336-343.



Anadarko Petroleum Corp (APC)

2010 2011 2012 2013 2014

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First Second Third First Second Third 96.12 92-93 87-88 101.29-103.5 115-121 135-138

Technical rating Bullish Sector Energy


Rationale: Recent strong rotation into late cycle economically sensitive sectors including Energy has benefited APC. A flag/pennant pattern now paints a potentially bullish technical condition. A convincing move above 101-103.5 confirms breakout and renders an upside target to 115-121, intermediate term. A larger breakout above 81.36 during 2011suggests a longer term target to 135-138. Initial support moves up to mid-Apr 2014 lows or near the bottom of the flag/pennant pattern at 96.12. Secondary support also resides along the high-80s to low-90s or the 10- /30-week ma.

AstraZeneca PLC ADS (AZN)

2010 2011 2012 2013 2014

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First Second Third First Second Third 71-74 67-69 61-64 80-81 90-91 100-102

Technical rating Bullish Sector HealthCare


Rationale: AZN has been confined to a wide trading range between the low-40s and the mid-50s over the past 4 years. However, a breakout above 52.5-53.5 late last year signaled the start of a major rally. Since then AZN has quickly achieved several technical targets including 66-67 or the Oct '06 record high of 66.49 and 76-77 or the projected technical target based on late-2013 breakout above 53.53. Although higher prices are possible to 100-plus, longer term there is formidable supply at 80-81 or the extension of the Apr 1998/Oct 2006 uptrend. Initial support is 71-74.



Bank of America Corp (BAC)

2010 2011 2012 2013 201444

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First Second Third First Second Third 13-13.5 11.5 10 15.41-15.93 16.5-16.75 17.4-18.03

Technical rating Neutral Sector Financials


Rationale: BAC came close to confirming a major breakout above the top of its rising uptrend channel that dates back to 2011 near 17.75-18. A breakout here further substantiates a sustainable recovery and hints of a retest of the Aug '09 high at (18.25) and possibly the Oct ' 09/Apr '10 highs at 19.10-19.86. However, a sudden downside gap break-down during Apr 2014 below 15.5-16.5 has reversed the bullish technical outlook and hence our downgrade to Neu-tral. We suspect a deeper correction may result in a retest of 2011 uptrend and Oct/Nov 2013 lows near 13-13.5.

Franklin Resources Inc. (BEN)

2010 2011 2012 2013 20141515

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First Second Third First Second Third 49-51 45-46 41.34 55.17-56.54 58.70 61-62

Technical rating Bullish Sector Financials


Rationale: The intermediate to longer term trend remains Bullish as evident by a major uptrend channel dating back toMar 2009 and a smaller uptrend from June 2012. A major breakout along the mid-40s early last year still suggests higher prices to the low-60s, intermediate term and as high as the low-80s, longer term. However, a negative outside month in Jan 2014 and a 7-month head/shoulders top warn of further volatility. A consolidation phase is now likely between 50-51 and 55-56. A move above key initial resistance at 56.54-58.7 signals the resumption of the uptrend.



Bristol-Myers Squibb Co (BMY)

2010 2011 2012 2013 2014

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First Second Third First Second Third 47.42-47.52 43.76-44.37 41-42 53.68-54.49 56.83-57.49 60-61



Rationale: Most Pharmaceutical names have recovered from its 2007-2009 sell off including BMY. This Healthcare name has also broken out above the top of its 4-plus year uptrend channel in the low-40s last year. A successful test of the extension of the top of the uptrend channel bodes well for higher prices. Despite the favorable developments,BMY has relatively underperformed its larger cap Pharmaceutical peers suggesting a laggard in the group. Nonetheless, as long as it remains above the mid-to-high 40s it can continue to rally and reach the low-60s, intermediate term.

BP PLC ADS (BP)

2010 2011 2012 2013 2014

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First Second Third First Second Third 46-47 44-45 40-41 52-53 55-56 60-62.5



Rationale: Despite choppy conditions in commodities we retain a constructive technical view on a number of Energy names including BP. Although many international Energy companies continue to lag their domestic peers, BP has com-pleted a major 4-plus year symmetrical triangle breakout above 46 earlier in the year. Improving relative strength read-ings versus SPX and favorable risk/reward profile supports our Bullish technical outlook. Based on this breakout BP can still rally to 52-53, near-term and then to the mid-50s to low-60s, intermediate term. Key support is in the mid-40s.



Berkshire Hathaway Inc. – Class B stock (BRK.B)

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First Second Third First Second Third

118 108.12-110.5 100-101 129-130 138-140 155-157



Citigroup Inc. (C)

2010 2011 2012 2013 2014

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First Second Third First Second Third 45.06-45.18 43.68 36.5-40 50-51 52.88-53.68 55.17



Rationale: The 2011 rally from a low of 21.4 have stalled during Jan 2014 near the mid-50s. An ensuinghead/shoulders top pattern warns of a potential top. The head is at 55.28 or the Jan 2014 high. Left shoulders are visi-ble along 52.88-53.68 corresponding to the May/Jul/Sep 2013 highs. A right shoulder is evident 50-51 coinciding with the Mar 2014 highs. Key neckline support is at 45.06-45.18 or the Jun 2013/Apr 2014 lows. Also note that the 38.2% retracement from 2012-2014 rally is at 43.68. A breakdown below 45+/-1 renders downside to 40 and then 36.5.

Rationale: BRK.B remains a leader within the Financial sector. Two technical breakouts above the mid-80s and above low-100s early last year render upside targets to 129-130, near term, 138-140, intermediate term and then to 155-157, longer term. A consolidation between 108 and 119 during Aug 2013 to Mar 2014 has alleviated an overbought condition. The recent breakout above 118-118.5 coupled with a positive outside week on 4/18/14 signals the next ral-ly. Initial support rests near the prior breakout (118) and then 108.12-110.5 or the top of Sep 2009 uptrend channel.



Caterpillar Inc. (CAT)

2010 2011 2012 2013 2014

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First Second Third First Second Third 99.70-100.25 94-95 89-92 116.25-116.95 120-125 150-155

Technical rating Neutral Sector Industrials


Rationale: A large 4 year symmetrical triangle breakout along 87-89 in late 2013 signals the start of a technical recov-ery. Although further technical work is still necessary to sustain an intermediate to longer term recovery the strong sell-ing pressure from the past 2 years has abated. The key challenge for CAT is to convincingly clear above its prior 2011/2012 highs near 116-117. This action completes a multi-year ascending triangle breakout and renders upside targets to 120-125 (intermediate term) and then to 153-156 (longer term). Initial support is 93-95 or the 10-week ma.

Celgene Corp. (CELG)

2010 2011 2012 2013 2014

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First Second Third First Second Third 130.30-133.70 125.28 110.53-116.6 154-159 165-167 173.80-174.66



Rationale: Similar to others within the Biotechnology sector, CELG has also entered into a parabolic 2-year uptrendchannel that was not sustainable. This steep 2-year uptrend has suddenly reversed direction via its violation of the bot-tom of its uptrend in the mid-150s during Feb 2014. In addition, a weekly death cross sell signal as the 10-week ma (156) crossed below its 30-week ma (146) warns of a deeper correction. There is key initial support at 130-134 or the top of Jul 2013 upside gap and the 38.2% retracement from the 2012-2014 rally. Key initial resistance is 154-159.



ConocoPhillips (COP)

2010 2011 2012 2013 2014

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First Second Third First Second Third 70-71 62-63 58.71-59.64 79-81 86-87 98-100-91

Technical rating Neutral Sector Energy


Rationale: Technical breakout above the low-60s during May 2013 has confirmed a 4-plus year ascending triangle which is technically significant as this suggests a retest of the prior Jun 2008 all-time high of 73.15. Trading above this resistance can extend the rally to 79-81, near term and then to the mid-80s, intermediate term. Targets to the high 90s and possibly to the 120s are also possible, longer term. Key initial support is visible along the converging 10- /30-weekmoving averages near 70. The prior 2013 breakout and 2009 uptrend at 63 provides intermediate term support.

Costco Wholesale Corp. (COST)

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First Second Third First Second Third 109.5-110 105.97-107.37 93.5-96.5 117.47-120.20 124.74-126.12 130-131

Technical rating Bullish Sector Cons. Staples


Rationale: This retail supercenter remains in a well-defined uptrend channel dating back 2009 bounded by 109.5-110 on the downside and 130-131 on the upside. We retain a bullish technical outlook as long as this trend remains intact.However, on a near term basis, failure to clear above the top of the channel during the Nov 2013 rally to 126.12 cou-pled with a subsequent violation of the 2012 uptrend has prompted a correction. A potential 1-year head/shoulders top and recent violation of its 10 -/30-week ma (114/117) warn of a critical test of pivotal support at 109.5-110.



Campbell Soup Co. (CPB)

2010 2011 2012 2013 2014

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First Second Third First Second Third 42-43 39.5-40 37.5-38 48.08-48.83 52.67-53 60-63



Rationale: An ascending triangle breakout during early 2013 in the high-30s is technically bullish as this renders an upside target to 48-49, which was achieved during May ‘13 (48.83). A 1-year constructive consolidation phase accom-panied by a recent golden cross technical buy signal as the 10-week ma (44.36) crossed above its 30-week ma (42.69)in late Feb 2013 merits a technical upgrade to Bullish. A surge above its May 2013 downtrend at 45.75 renders upside targets to the high 40s to the low 50s. Key support moves up to the low-40s to high-30s.

CSX Corp. (CSX)

2010 2011 2012 2013 2014

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First Second Third First Second Third 27-27.5 25.84 22.4-23.71 29-30 32-33 36-37

Technical rating Bullish Sector Industrials


Rationale: Dow Jones Transportation Average continues to trade to all-time highs carrying most of its components higher. CSX has lagged its peers over the past three years as evident by price appreciation and relative strength under-performance. Nonetheless, this transport name has now begun to shows technical signs catching up to its peers as evi-dent by the recent breakout above the Jul '11 high at 27.06. This breakout renders upside targets to 29-30 (near term), 32-33 (intermediate term) and then 36-37 (longer term). Key initial support now resides near 27-27.5 and then 25.84.



CenturyLink Inc. (CTL)

2010 2011 2012 2013 2014

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First Second Third First Second Third 30.34 26.69-27.93 25-25.25 35.33-35.90 39-40 42-43

Technical rating Neutral Sector Comm. Services


Rationale: The Feb/May 2013 negative outside months and a death cross sell signal first warned of a major top. Sub-sequent negative outside weeks (5/31/13, 6/21/13 and 11/22/13) and negative outside days on 8/8/13 and 11/7/13 and 11/21/13 reaffirm selling. The strong selling has abated into 2014 as evident by a falling wedge breakout (at 31) during Feb '14 as well as a secondary breakout above 32.01-32.37 and a golden cross buy signal. Although the trend is still challenging we recommend upgrading the technical outlook to Neutral as CTL can retest the mid-to-high 30s.

CVS Caremark Corp. (CVS)

2010 2011 2012 2013 2014

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First Second Third First Second Third 72 67-68 64-65 75-76 79-80 85-86.50



Rationale: The 2012/2013 breakouts suggest upside targets to the low-to-mid 70s. Also note the top of an expanding channel formation from late 2012 is also converging near the mid-70s. Although higher prices are possible CVS may be vulnerable for a near to intermediate term correction if it fails to clear above the 2012 uptrend channel at 74-76. A convincing breakout here can extend the rally to 79-80 and then to the mid-80s. However, failure to breakout may trigger a pullback to initial support at 72 and to then to 67-68 or to its 30-week ma and its Feb 2014 upside gap.



Chevron Corp (CVX)

2010 2011 2012 2013 2014

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First Second Third First Second Third 118-121 110-115 100-103 124-125 127.83 133-135



Rationale: After underperforming its peers into later part of 2013 and into early 2014, this important Energy name has begun to show technical signs of reasserting its primary uptrend. The recent ability to maintain its 2011 uptrend near 110 and quickly recover back above its 10-week ma and 30-week ma at 118-119 may set the stage for the next rally. A surge above 124-125 reaffirms this recovery and allows for a rally to the top of its 2011 uptrend channel at 133-135. Initial support is at 118-121 or the 4/16/14 upside gap and key moving averages. Secondary support is at 110-115.

Dominion Resources Inc. (D)

2010 2011 2012 2013 2014

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First Second Third First Second Third 69-70 67-67.5 63-64 74-75 79-80 84-85

Technical rating Bullish Sector Utilities


Rationale: This remains one of the stronger Utility names as evident by the record highs. The strong rally may begin toslow as it nears key resistance along the mid-70s coinciding with the top of its 2009 uptrend channel as well as the top of the 2013 uptrend channel. A normal consolidation may alleviate a moderately overbought condition as it corrects to the high 60s. The ability to clear the mid-70s can lead to higher prices possibly towards 79-80 and possibly 84-85, longer term. The 10-week ma at 70 and 30-week ma at 67 offer key supports on any subsequent corrections.



E.I. DuPont de Nemours & Co. (DD)

2010 2011 2012 2013 20142020

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First Second Third First Second Third 64-65 59-60 55-57 68-70 75-77 84-84.50

Technical rating Bullish Sector Materials


Rationale: The confirmed May ‘13 breakout of a multi-year triangle pattern (above 54) coupled with a 3-year ascend-ing triangle breakout in Jul ‘13 (above 57) render upside technical projections to 68-70 (near term), 75-77 (intermedi-ate term) and to 84-84.50 (longer term). We continue to recommend keeping tight support levels to protect gains. Initial support remains at 64-65 or the 30-week ma and the Feb ‘14 breakout as well as the 2012 uptrend. Secondary support is also available near the Nov/Dec ’13 lows at 59-60. Major support remains at 55-57 or prior breakouts.

Deere and Co (DE)

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First Second Third First Second Third 87-88 84-85 79.5-81.19 93-94 99-100 106-110



Rationale: Although the relative strength against SPX has not yet turned, we are encouraged by two potentially bullish triangle patterns including the 2011 symmetrical triangle (breakout above 93) and the smaller 2013 triangle (breakoutabove 90). A positive outside month on Nov ’13 and subsequent positive outside weeks on 12/6/13 and on 2/28/14 also hint of a sustainable recovery. A convincing breakout above 93-94 warrants a technical upgrade and renders up-side targets to 99-100 (near term), 106-110 (medium term) and then 130-133 (longer term). Key support is at 84-88.



Diageo PLC ADS (DEO)

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First Second Third First Second Third 112-115 110 100-102 127.5-129 133-134 139-140

Technical rating Neutral Sector Cons. Staples


Rationale: Although the longer term trend remains bullish, the near-to-intermediate term trend for this mega cap global Consumer Staples name remains Neutral with a well-defined trading range between 112-115 on the downside and 133-134 on the upside. Note that a negative outside month on Jan 2014 also warns of challenging environment.A breakdown below 112-115 can trigger a decline to 110 or the top of its 2009 uptrend channel and then below this to 100-102 or the bottom of its uptrend channel. Initial resistance is at 127.5-129 and then at 133-134.

The Walt Disney Co (DIS)

2010 2011 2012 2013 2014

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First Second Third First Second Third 74.5-76.31 71-72.05 67-68 82.85-83.60 85-87 90-92

Technical rating Bullish Sector Cons. Disc.


Rationale: This leadership Consumer Discretionary name has broken out of a major 15 year technical base (not shown) above 43.26 during early 2012. A 4-plus year channel breakout earlier last year (2013) along high-50s renders an up-side target to the low-80s. Although DIS is trading near all-time highs there are mixed technical signals to suggest a battle developing between the bulls and the bears. On the positive side this includes positive outside weeks on 2/7/14 and 3/7/14 and a large gap up on 2/6/14. However, 3 negative outside days in Mar ’14 also suggests a matured rally.



Dow Chemical Co. (DOW)

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First Second Third First Second Third 46.5-47 43.5-45 41-42 50-51 56.75 64-66

Technical rating Bullish Sector Materials


Rationale: The breakout last year above the top of an ascending triangle pattern near 36-37 signals the start of a re-covery. A recent surge above the 2008/2011 highs at 42.23-43.43 earlier this year further reaffirms a sustainable turna-round. This breakout renders upside targets to 50-51 (near-term), 56.75 (intermediate or the 2005 record highs) and then 64-66 (longer term). Although profit taking is possible, initial support is now visible at 46.5-47 corresponding tothe 30-week ma. Secondary support is also available at 43.4-45 or the recent breakout and then 41-42.

Duke Energy Corp. (DUK)

2010 2011 2012 2013 2014

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First Second Third First Second Third 70.5-71.5 67-68 63.9-64.16 75.47 76.62-77.20 81.51

Technical rating Neutral Sector Utilities


Rationale: The 4-plus year rising uptrend channel suggests higher prices. However, it appears that the risk/reward pro-file is no longer favorable as there is formidable intermediate term resistance near 75.47-77.20 coinciding with the Oct/Dec 2000 and 2013 highs. Failure to clear above this key supply zone may lead to another consolidation phase. In addition, weak relative strength readings against SPX hint of a market performer. Initial support resides along 70.5-71.5 or the 10- /30-week ma. Key secondary support is visible at 67-68 or the Jan '14 lows and the Mar 2009 uptrend.



Emerson Electric Co. (EMR)

2010 2011 2012 2013 2014

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First Second Third First Second Third 61-62.5 58.72-59.05 54-55 70-72 83-85 93-94



Rationale: The Industrials and EMR have been outperformers last year. After a brief consolidation earlier this year we expect EMR to again emerge as a leader. The prior 2013 breakout above the low-to-mid 60s suggests upside targets to 70-72 (near term), 83-85 (Intermediate term) and 93-95 (longer term). However, on a near-term basis, an overbought condition earlier in the year near the low-70s coupled with a negative outside week on 1/3/14 has led to the recent correction. Nonetheless, the ability to find key support along the low-70s has contained the selling and ignited a rally.

EOG Resources (EOG)

2010 2011 2012 2013 2014

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First Second Third First Second Third 97 89.5 78 105.5 110 122-123



Rationale: We retain our Bullish stance as a key breakout above the 2008 all-time highs (low-to-mid 70s) during mid-2013 renders upside targets to 110 (near term) and then to 122-123 (medium term). Nonetheless, an overbought con-dition will likely develop into this rally prompting a consolidation phase. Initial support now moves up to 97 or to the 10-week ma. Secondary support also rises to 89.5 or the 30-week ma. The Dec 2013 low at 78 offers additional key support on pullbacks. The 2013 breakout at 70-71 remains pivotal intermediate term support.



Ford Motor Co (F)

2010 2011 2012 2013 2014

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First Second Third First Second Third 14.3-14.4 13.5 12.10-12.33 16.5-16.75 17.68-18.23 18.97



Rationale: During Sep/Oct '13 rally this Auto name once again failed to clear above major resistance associated with the 2002/2011 highs at 18.23-18.97. In the ensuing correction both of the 10- /30-week moving averages (15.5/16) and its Aug 2012 uptrend (15.5) were breeched. Despite the setback the crucial 38.2-50% retracement from Jul '13 to Oct '13 rally as well as its Jan/Jun '13 and Feb '14 lows at 13.5-14.5 remain intact. Another technical basing effort be-tween 14.5 and 17.5 will likely develop over the near-to-intermediate term.

Facebook Inc. (FB)

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First Second Third First Second Third 54-55 51.85 43.55-45 63.60-63.91 66.51-66.62 71.44-72.59

Technical rating Neutral Sector Technology


Rationale: The Aug 2013 breakout above the low-30s and above the 2012 IPO high of 45 ignited a dramatic rally led to a new record high of 72.59 in Mar 2014. However, an extreme overbought condition would develop and the wide-spread selling of momentum/growth stocks prompted a sharp downturn as FB fell 38%. We recommend downgradingto Neutral and wait to see if FB can maintain its Feb 2014 upside gap at 54.95-60.46. The ability to hold onto this sup-port zone may lead to a technical base between 55-56 and 63-63. Violation here suggests a decline towards 51.85/45.



Gilead Sciences Inc. (GILD)

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First Second Third First Second Third 75.25-76 71.63-72.77 67.63-69 80-82 84.4-84.88 92-94



Rationale: This Biotechnology name has rallied over 435% from its 2010 low (15.87) to a recent 2014 high (84.88). We maintain a Neutral rating on GILD as we believe this parabolic trend is not sustainable. An extremely overbought condition coupled with violations of the 10- /30-week ma as well as its Jun ‘13 uptrend (76.5) has triggered a correc-tion. Although there has been a technical rebound we recommend investors continue to monitor risks. Initial support is 75.25-76. Secondary support is 71.63-72.77 and then 67.63-69. Initial resistance is 80-82 or the 2013 uptrend.

General Mills Inc. (GIS)

2010 2011 2012 2013 2014

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First Second Third First Second Third 50-51 46-47 44-45 51.67-51.96 53.07-53.39 58-59



Rationale: After being confined to a 4-plus year uptrend channel between the high-30s and the mid-40s, GIS finally broke out of the top of its range early last year (Jan ‘13). The stock appreciated over 23% from its breakout achieving an all-time high in the low-to-mid 50s. A negative outside day on 8/15/13 followed by a negative outside month also in Aug ‘13 has led to a consolidation over the past year. However, the recent breakout of this triangle pattern at 51-52 signals the resumption of the long-term primary uptrend and hence our upgrade to Bullish outlook.



GlaxoSmithKline PLC ADS (GSK)

2010 2011 2012 2013 2014

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First Second Third First Second Third 53-54 50-51 47-48.5 56.73 59-60 63.25-64.5



Rationale: Although this Healthcare name is still trading far below its 1999 high of 76.19, a 4-plus year channel breakout above 48 during Apr ‘13 suggests the start of a sustainable recovery. A technical base between 48.30 andmid-50s can set the stage for yet another rally towards 59-60 or the 2006/2007 highs and then to the mid-60s, over time. In addition, a positive outside month in Oct ’13 and Feb ‘14 support the basis for higher prices. On the downside, initial support is visible along 53-54 or the 10-week and 30-week ma and then 50-51 or the 2013 uptrend.

Home Depot (HD)

2010 2011 2012 2013 20142020

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First Second Third First Second Third 78.25.78.75 72.21-73.96 70 82.57-83.20 86-88 93-95

Technical rating Bullish Sector C. Discretionary


Rationale: An accelerated channel breakout during early 2012 has led to a strong rally that seems to be maturing as evident by an ascending wedge formation. Although this rally has stalled over the past year it has yet to reverse its pri-mary uptrend. Nonetheless, the recent violation of the 2011 uptrend channel as well as the deteriorating relativestrength readings against SPX warn of either a consolidation or the beginning of a major top. The outcome of the trad-ing range between 72.21-73.96 and 82.57-83.20 will help to determine the next directional trend.



Honeywell International Inc. (HON)

2010 2011 2012 2013 2014

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First Second Third First Second Third 89-90 78-80 68-70 98-99 102-103 115-118



Rationale: We maintain a Bullish technical stance on this Industrial name based on its 13-year technical breakout in the low-to-mid 60s during the late-2012. However, on a near term basis the strong rally over the past year is now ap-proaching key resistance along the top of its 2011 channel along 98-99. A convincing breakout here can help to accel-erate the rally towards 102-103 and then to 115-118, longer term. However, failure to breakout above the high-90s coupled with a violation of key initial support at 89-90 or the 30-week ma and the 2013 uptrend signals a correction.

International Business Machines Corp (IBM)

2010 2011 2012 2013 20148080

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First Second Third First Second Third 180-185 172-175 157-160 197-206 210-212 215.82



Rationale: The technical weakness in this Technology name over the past two year or so has been discouraging when the broad market and other Technology names have been so strong. The Mar ‘13 rally to its all-time highs (215.9) may have been a bull trap as a large downside gap soon developed on 4/19/13 (196.5-206.15). This was quickly followed by a break of the 2009 uptrend also near 197-201. The Dec 2013 positive month and recent technical rally give the bulls hope for a sustainable recovery. However, a convincing move above 197-206 is needed to confirm a turnaround.



Illinois Tool Works Inc. (ITW)

2010 2011 2012 2013 2014

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First Second Third First Second Third 79.47 76.25 70.1-71.1 90 94-95 100



Rationale: A breakout above 59-60 levels during late-2012 reaffirms our Bullish outlook. In addition, the recent surgeabove a 4-plus year rising uptrend channel during Apr/May ’13 in the low-70s is technically significant as this action can lead to the continuation of the uptrend. More recently a positive outside month patterns on Sep ’13 and Dec ’13should keep the bulls optimistic. Initial supply is at 90 based on Fibonacci projection. Above this mid-90s and psycho-logical resistance level at 100 should act as key supply level. Initial support lies along 79.47 or close to the Mar ’14 low.

Johnson and Johnson (JNJ)

2010 2011 2012 2013 2014

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First Second Third First Second Third 95 +/- 1 90 85.50-86.10 105-106 109-110 115-116

Technical rating Bullish Sector Healthcare


Rationale: In 2013, JNJ has finally broken out of its large ascending triangle pattern that dates back to the late-1990s. This break out above 70-73 renders an intermediate-term target to 115-116. In addition, constructive outlook in the relative charts with respect to S&P 500 should keep bulls optimistic. We recommend keeping initial support at 95 +/- 1 or the Mar ’14 breakout level or near the Jul/Aug/Nov ’13 and Jan ’14 highs. Secondary support lies at 85.50-86.10 or near the Aug/Sep/Oct ’13 and Feb ’14 lows. Initial supply lies along 105-106 which is a Fibonacci projection.



Kimberly-Clark Corp. (KMB)

2010 2011 2012 2013 2014

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First Second Third First Second Third 108 102-103 91.5-93 117-121 125-126 132-133



Rationale: We continue to maintain a Bullish intermediate term technical view on this Consumer Staples name. Alt-hough there were signs of a potential top during the second and third quarter of 2013; the recent rally has reassertedthe primary 2009 uptrend. Also a positive outside week formation on 10/11/13 and an upside gap on 10/22/13 haveenticed investors to return to this stable, high yielding name. Initial support lies at 108 or near the 30-week ma and coincides with the Mar/Apr ’14 lows. Initial supply now lies along 117-121 based on Fibonacci projection.

L Brands Inc. (LB)

2010 2011 2012 2013 2014

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First Second Third First Second Third 48.77-50.78 42-43 37-38 58.50-60 63.50-64 67.20



Rationale: We keep our Neutral technical stance on LB. After a solid year in 2013, L Brands appear to be trading on a cautious side in 2014. A 12/6/13 negative outside week and the Dec ’13 negative outside month have led to a 20%drop from its Dec ’13 highs. A positive outside week formation on 2/7/14 offered some respite. However, the Apr ’14negative outside month pattern hints of further consolidation. Initial support is available along 48.77-50.78 or the May/Jun/Jul ’13, Feb ’14 lows and the bottom of the 4-plus year raising uptrend channel.



McDonald’s Corp (MCD)

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First Second Third First Second Third 92.22-94 86-89 83.31 103.70 110 115-116



Rationale: Violation of the 2009 uptrend (dash line) last year triggered a sharp decline to the bottom of its 2008 up-trend channel. The ability to maintain 83.31 during this pullback has led to another technical rally back to key nearterm resistance coinciding with the 2012/2013 highs near 103.70. A breakout here can help to send MCD to 115-116 levels over time. On the other hand, a failure to breakout coupled with violation of initial support in the low-to-mid 90s signals the start of a correction to 86-89 and below this a retest of the Nov 2012 low at 83.31.

McGraw Hill Financial Inc. (MHFI)

2010 2011 2012 2013 20142020

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First Second Third First Second Third 70 +/- 1 65 58-58.50 82.82.50 93-94 100-101



Rationale: We keep our Bullish stance following the confirmed breakout of a 4-plus year uptrend channel. Despite a volatile period during the first quarter of 2014 and a temporary break of the bottom of its one year uptrend channel,the surge above the mid-60s or the top of the five year uptrend channel as well as a breakout above its previous all-time highs of 72.50 established during Jun 2007 keep the bulls optimistic. Also 3/07/14 and 4/18/14 positive outside weeks are encouraging. Initial support lies at 70 +/- 1 or near the Dec ’13 and Jan ’14 lows.



3M Co (MMM)

2010 2011 2012 2013 2014

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First Second Third First Second Third 130 +/- 2 123.61 116.65 146 150-151 157-157.50



Rationale: A classic inverse head and shoulder pattern breakout dating back to 2004 (not shown) offers bullish impli-cations, at least from an intermediate-to-longer term perspective. The upward sloping neckline corresponds to 107.50-108.50. The right and left shoulder corresponds to the high-60s and the low-70s, respectively. A breakout during the first quarter of 2013 reaffirms this accumulation type pattern and led to solid gains. In the near-term, a positive outside week pattern during 4/18/14 should keep bulls optimistic. Initial support lies at 130 +/- 2 or near the 30-week ma.

Atria Group Inc. (MO)

2010 2011 2012 2013 2014

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First Second Third First Second Third 35.50-36 33.12-33.80 30-31 41-42 44-45 48-49

Technical rating Neutral Sector Cons Staples


Rationale: This defensive consumer staples name has been erratic over the past couple of years as it has entered into arare but well defined broadening wedge formation. A trading range has developed between low-to-mid 40s and 33-34. While a breakout of the top may keep bulls optimistic; a move below bottom of the trading range may trigger aretest of the bottom of its wedge near the low-30s. Considering the near-term solid performance of the stock we now raise initial support to 35.50-36 or near the Mar ’14 lows and 10/30-week moving averages.



Merck & Co Inc. (MRK)

2010 2011 2012 2013 2014

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First Second Third First Second Third 53.57 47.61 44.62 61-62 66-68 71-72



Rationale: In 2013, this Pharmaceutical name has broken out of a major 2000/2007 downtrend (not shown) along the low-40s (40-42). This action first set the stage for the beginning of a turnaround situation. However, from a relative strength perspective as it relates to the S&P 500 Index, the stock continues to lag the market ever since the mid-to-late 2012 until third quarter of 2013. The Nov ’13 positive outside month pattern and the recent large Jan '14 upside gapled to superior gains (30%) and this would keep investors optimistic. Initial support rises to 53.57 or the Mar ’14 lows.

NextEra Energy Inc. (NEE)

2010 2011 2012 2013 2014

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First Second Third First Second Third 93-94 86.12 81.50 104-105 108-109 112-113

Technical rating Bullish Sector Utilities


Rationale: This Utility name continues to retain its favorable uptrend since breaking out from an ascending trianglepattern in early 2012. This breakout suggests upside targets to the low-100s (near term) and then to the low-110s (In-termediate term). Despite the defensive nature of NEE, we remain encouraged by the favorable risk-reward profile from an intermediate to longer term basis. Nonetheless, we recommend moving up initial support to 93-94 or to the Apr ’14 lows and the 10-week ma. Initial resistance is visible along 104-105, which is a Fibonacci projection.



Nestle S.A. ADS (NSRGY)

2010 2011 2012 2013 2014

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First Second Third First Second Third 72 +/- 1 67-68 63.40-64.40 80 84-86 90



Rationale: The long-term bullish trend from the 2009 lows still remains intact. In addition, a multi-year breakout above the 2008 highs (not shown) during 2010 reinforces the primary uptrend. However, since the mid-to-late 2011 the rela-tive strength trend against the S&P 500 Index has deteriorated indicating either a maturing trend or a lack of leader-ship. Although the stock can continue to trend higher; it will likely appreciate at a slower pace than its peers and henceour Neutral intermediate term technical outlook. Initial support resides along 72+/-1 or near the Dec ’13/Mar ‘14 lows.

Novartis AG (NVS)

2010 2011 2012 2013 2014

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First Second Third First Second Third 80 +/- 2 76-76.50 72-73 90 95-96 100-101


Last Sale Price $87

Rationale: We retain our Bullish technical stance on NVS. A convincing move above the multi-year highs in the mid-60s reinforces the intermediate term uptrend. In addition, the onset of an inverse head and shoulders pattern breakout on the long-term charts (not shown from 2005-2006) and a five year symmetrical triangle breakout is positive. Alt-hough the stock continues to lag its peers from a relative basis, a positive outside Feb ’14 month pattern can extend the 1-year uptrend channel. The Feb/Mar ’14 lows and 30-week ma near 80 +/- 2 provide key initial support.



Oracle Corp. (ORCL)

2010 2011 2012 2013 2014

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First Second Third First Second Third 37 +/- 0.5 32 +/- 1 29 +/- 0.5 46.47 50-52 55-56



Rationale: Two large downside gaps on 03/21/13 and 06/21/13 kept investors skeptical about the recovery. A prior head and shoulders top formation as well as a negative outside month pattern during March’13 hinted of future vola-tility in this important Technology name. Nonetheless, recent surge above key resistance at 36.50 confirms a keybreakout and suggests the start of a sustainable recovery. In addition, a positive outside month patterns in Dec ’13 andFeb ’14 should keep investors positive. Initial support resides near 37 +/- 0.5 or near the Jan/Mar ’14 lows.

Occidental Petroleum Corp. (OXY)

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First Second Third First Second Third 91 +/- 1 84.50-86 77-79 99-100 106-107 111-112



Rationale: A breakout of a 4-plus year symmetrical triangle pattern above the low-90s suggests a recovery. However, we remain concerned about the continued relative underperformance of the stock in relationship to S&P 500 Index and its peers over the past 3 years. While the stock can still rally higher, a multi-year large head/shoulders top warns of fu-ture volatility. A positive outside month pattern during Feb ’14 is technically constructive and can allow for a retest ofrecent highs (99-100). Initial support is at 91 +/- 1 or near the Dec ‘13/Mar ’14 lows.



Pepsico Inc. (PEP)

2010 2011 2012 2013 2014

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First Second Third First Second Third 80 +/- 2 74-75 70-71 87.06 93-95 100



Rationale: This Consumer Staples name has recently recorded new highs via a recent 4-year channel breakout. This important breakout renders upside targets into the low-to-mid 90s, over time. Although we remain optimistic on thelonger-term growth prospects of the stock, we note the sideways trading between high-70s and the high-80s over the past year. The relative strength chart also confirms an underperformance against SPX over the intermediate term. Wemaintain a Neutral outlook and recommend waiting for a resolution of this trading range before entering.

Pfizer Inc. (PFE)

2010 2011 2012 2013 2014

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First Second Third First Second Third 29.58 27-28 24-25 32.96 34-35.5 38-39



Rationale: A 10-year downtrend breakout above 19 +/- 1 during 2011 (not shown) has ignited a major trend reversalfavouring a sustainable recovery. From the 2009 bottom (11.62) this pharmaceutical name has retraced over 50%(30.83) of its 1999-2009 declines. A rally to the 61.8% retracement at 35.36 is reasonable, intermediate term and pos-sibly to the high-30s, longer term. However, repeated failures to maintain above the 50% level (30.83) coupled with adecline below key initial support at 29.58 signals the start of a correction and warrant a technical downgrade.



Procter & Gamble Co (PG)

2010 2011 2012 2013 2014

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Source: FactSet, UBS WMR as of 01 May 2014 Support levels Resistance levels

First Second Third First Second Third 73.6-75.40 70.75-71.75 66-68 85-86 90-91 94.50



Rationale: Although we remain optimistic on the longer-term outlook of PG, we believe a Neutral stance over thenear-to-intermediate term is warranted due lack of relative leadership with reference to S&P 500. In addition, the 2009uptrend channel breakout last year in the low-70s has recently met our technical projection of mid-80s. As PG traded towards the mid-80s in Nov ’13, two negative outside weeks developed (11/29/13 and 12/13/13). Failure to stay above its 30-wk ma (80) may lead to a retest of key support in the mid-70s or the 2014 lows and the 2009 channel top.

Philip Morris International (PM)

2010 2011 2012 2013 2014

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First Second Third First Second Third 80 +/- 2 73-75 67-68 87.34 91-92 96.6-96.73



Rationale: This Consumer Staples name retains its Bullish longer term uptrend dating back to 2008/2009. However, itneeds to clear above its Apr/May 2013 highs of 96.6-96.74 to signal a sustainable, intermediate term recovery. A bear-ish rising wedge pattern continues to warn of increasing volatility. A death cross (10-week ma crossing below 30-week ma) sell signal several months ago warns of persistent selling pressure that may result in a retest of initial support in thehigh-70s to low-80s. Key initial resistance is visible at 87.34 corresponding to the Jan ‘14 highs.



Royal Dutch Shell PLC ADS Cl A (RDSA)

2010 2011 2012 2013 2014

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First Second Third First Second Third 70 +/- 2 62 +/- 1 57.97 82-83 88-89 95



Rationale: We recommend developing a Bullish stance on RDSA. A positive outside month pattern during Apr/Jul/Oct ’13 and Feb ’14 hints of a sustainable intermediate term recovery. This Energy name has recently surgedabove the top of the 2011 symmetrical triangle. However, there is resistance in the low-80s that may lead to a pull-back. Nonetheless, a breakout here renders upside to the 2006/07 highs at 88-89, over time. Initial support lies at 70 +/- 2 or near the Jan/Feb/Mar ’14 lows and the 30-week ma. Below this the low-60s should act as secondary support.

Starbucks Corp. (SBUX)

2010 2011 2012 2013 2014

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First Second Third First Second Third 67.93 66.30 62.31 75 78-79 82.50



Rationale: The longer-term Bullish trend from the 2008-09 lows continues to suggest higher prices. Also, a multi-year breakout above the 2006 highs in late-2011 reaffirms an uptrend. However, over the near-to-intermediate term, an overbought condition has led to a pullback starting from Dec ’13 to till date. This resulted in a death cross signal indi-cating that the stock is likely to consolidate further and hence our downgrade to technical Neutral stance. The ability ofthe stock to hold above our initial support at high-60s or the Feb/Apr ‘14 lows can stabilize recent selling.



Schlumberger Ltd (SLB)

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First Second Third First Second Third 95 88.50-89.50 85 104-106 111-112 114-116



Rationale: This influential Oil Service name has a tendency to lead major turns in both the Energy sector as well as WTI Crude Oil. A 2-year ascending triangle pattern breakout (mid-80s) as well as an upside gap on 7/19/13 has led to a breakout of the top of its 5-year triangle pattern in the low-to-mid 90s. Although a recent negative outside week on 3/14/14 hinted us of consolidation over the near-term; a solid bounce back in the following weeks not only lead to su-perior performance on both absolute and relative basis, but also alleviated the concerns. Initial support now lies at 95.

St. Jude Medical Inc. (STJ)

2010 2011 2012 2013 2014

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First Second Third First Second Third 59.16-59.85 55 +/- 1 51 +/- 1 68-71 75 80-81



Rationale: We remain optimistic on STJ as last year's breakout above the mid-50s has negated a five year head and shoulder top pattern prompting recent rally to all-time highs. In addition, Sep ’13 positive outside month formation andsubsequent 10/04/13, 10/18/13 and 12/06/13 positive outside week patterns reaffirm a major trend reversal as thebulls are back in control of this stock. However, considering the near-term volatility we recommend lowering initial support to 59.16-59.85 or near the Feb/Apr ’14 lows. Initial resistance is 68-71 and then the mid-70s.



AT&T Inc. (T)

2010 2011 2012 2013 20142222

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First Second Third First Second Third 31.74 30 27-28 38.5-39 42.79 47.25-47.50



Teva Pharmaceutical Industries Ltd. ADS (TEVA)

2010 2011 2012 2013 2014

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First Second Third First Second Third 47.80 44.50-45.10 38.97 53.50-54 57-58 61-62



Rationale: We maintain our technical Bullish rating on TEVA based on the recent breakout of a large symmetrical tri-angle dating back to 2011. In addition, the Mar/May ’13 positive outside months as well as a successful breakout earli-er in 2014 sustains the recovery. Based on this successful breakout, targets to the high-50s are possible, over time. On the downside, we recommend keeping initial support at 47.80 coinciding with the Mar ’14 lows. On the contrary, we do not rule out consolidation in the near-term considering 4/25/14 negative outside week pattern formation.

Rationale: We maintain a technical Neutral stance on AT&T. Although the longer-term trend extending from the 2008/2009 lows may not have been violated, the stock paints a mixed picture from both the relative strength and an absolute price basis. A near term descending triangle breakdown below 33 warns of a medium term top. However an oversold rally in Mar ’14 offered some respite. In due course the stock exhibited a negative outside week pattern on 4/25/14 which gives us an impression that consolidation phase is likely to resume. Death cross signal is also uninspiring.



Target Corp (TGT)

2010 2011 2012 2013 2014

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First Second Third First Second Third 58.58 54.66 47.25 65 +/- 2 70 +/- 1 73-75



Rationale: Despite a recovery from the 2008/09 lows, TGT has struggled into the end of 2013 and into early 2014.The 07/26/13 negative outside week formation first warned of distribution. This has quickly led to a 20% correctionfrom its Jun '13 highs (73.50). A subsequent break below the low-60s confirms a major technical breakdown and paints an increasingly weak technical picture from both an absolute and relative basis against S&P 500. On the contra-ry, the 2/28/14 positive outside week could trigger a technical oversold rally to the mid-60s.

Total S.A. ADS (TOT)

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First Second Third First Second Third 65 +/- 1 60 +/- 1 55-56 78-80 84-85 91-91.50



Rationale: We recommend developing a Bullish outlook on TOT. This Energy name exhibited multiple breakouts be-ginning with a solid breakout of the 4+ year downtrend channel during 2013. A stable recovery led to a move above 2010 and 2011 highs. In due course a positive outside week pattern on 2/7/14 and a positive outside month in Feb ’14 month kept bulls optimistic. We believe a successful breakout above previous reaction highs at 67.50-68 can finally entice investors to return. We raise our initial support to 65 +/- 1 or near 10-week moving average.



Travelers Companies Inc. (TRV)

2010 2011 2012 2013 2014

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First Second Third First Second Third 85-86 80 +/- 2 74-75 91.68 94-96 100



Rationale: Despite the near-term bounce back of the stock we keep our technical Neutral stance on TRV. The mixed trading outlook of stock both on an absolute and relative basis over the past one year keeps us neutral. However, the longer-term structural bull trend from the mid-80s (not shown) remains intact. Nonetheless, violation of 2011 uptrendearlier in the year, a negative outside week pattern (01/03/14) and a death cross signal (10-week ma crossing below 30-week ma) all exhibit distribution signs. We will closely monitor the trading range between high-70s and low-90s.

Union Pacific Corp. (UNP)

2010 2011 2012 2013 2014

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First Second Third First Second Third 180-181 170 165 194.16 197-200 210-211



Rationale: We keep our technical Bullish rating on UNP as a convincing surge above the Jul ’13 highs or 165.18 keeps investors active in this Transportation name. More recently a positive outside week formation on 04/18/14 further reaf-firms the bulls are in control. We keep our initial support at 180-181 corresponding to the upside gap on 3/4/14. Sec-ondary support is at 170 and then 165 or the prior breakout. Note that there are formidable resistances evident near mid-190s or the Apr ’14 highs and the convergence trend lines.



United Parcel Service (UPS)

2010 2011 2012 2013 2014

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First Second Third First Second Third 93.19 89 84-85 105-106 115 120-121



Rationale: We are optimistic on the long-term outlook on this Transportation name based on the well-defined uptrend channel over the past five years. A convincing surge above the low-to-mid 90s confirms a new record high above the previous 2004 high of 89.11. Although the Sep ’13 positive outside month may help to contain future corrections; the01/03/14 negative outside week has led to a relative underperformance with reference to S&P 500 year-to-date. The converging key moving averages also gives us an impression that further consolidation is likely in the near-term.

US Bancorp (USB)

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First Second Third First Second Third 38.72 34.5-36 31-32 43.66 50-51 55-56



Rationale: This Financial stock has recovered almost all of its losses incurred during the subprime crisis. A move aboveits previous all-time highs at 42.23 signaled the start of a sustainable rally. In addition, the Sep ’13 positive outsidemonth pattern is bullish. However, USB retraced in sympathy with its Financial peers from Mar ’14 highs. While wemake a note of near-term relative underperformance of the stock with reference to S&P 500, we give a benefit of doubt and stay with the bulls. Initial supply lies at 43.66 or near the Mar/Apr ’14 highs.



Visa Inc Cl A (V)

2010 2011 2012 2013 2014

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First Second Third First Second Third 200 +/- 2 194.84 180 211-212 225 +/- 5 235-236



Rationale: A solid 350% rally from 2008 lows broadly sums up the optimism surrounding the stock. The stock witnessa gradual rally in both absolute and relative charts over the past 4+ years. That said the question remains; How high is the high for the stock? Considering negative outside Mar ’14 month pattern, we think consolidation is likely to contin-ue for some time and hence we downgrade V to Neutral. Initial support lies near 200 +/- 2 or near the Sep ’14 highs and Dec ’13 lows. Secondary and key support lies at 194.84 or the Apr ’14 lows.

Vodafone Group PLC ADS (VOD)

2010 2011 2012 2013 2014

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First Second Third First Second Third

34-35 30-32 24-26 42.14 46 50

Technical rating Bullish Sector Comm. Services


Rationale: In Aug ’13, this Communication Services name has exhibited a breakout above an extensive trading range (over the past 3 years) as defined by 31 +/- 1 on the upside and 25 +/- 1 on the downside. An upside gap on 8/29/13 not only led to a positive outside week formation, but also led to five consecutive months of gains. Next technical tar-get is at 42.14 corresponding to the Feb ‘14 highs. Above 42.14 can help to infuse fresh optimism into the stock. Anoverbought condition has prompted a normal pullback to initial support at mid-30s or to the Oct ’13, Feb/Apr ’14 lows.



Verizon Communications Inc. (VZ)

2010 2011 2012 2013 2014

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First Second Third First Second Third 45 40.50-41.50 35-37 51.50 54.31 57-59



Rationale: We maintain a Neutral stance on VZ as it has violated its 2010 uptrend. Although, a multi-year breakout above 2007 highs or 43.01 in late-2012/early-2013 is constructive, the negative outside week patterns during6/21/2013, 8/2/2013, 01/10/2014, 04/11/14 and 04/25/14; and a death cross signal (10 week ma crossing below 30week ma) warns of increasing weakness. In addition, continued relative underperformance of the stock and violation ofkey support at 45 or the Sep ’13 lows further validate an intermediate term trend reversal favoring the downside.

Walgreen Co. (WAG)

2010 2011 2012 2013 2014

2525

3030

3535

4040

4545

5050

5555

6060

6565

7070



First Second Third First Second Third 62 +/- 1 53.76-55 46.75 70-70.50 75 81-82



Rationale: A Bullish technical stance on WAG is warranted as the result of a large breakout of a multi-year accumula-tion pattern above low-50s. In addition, Mar/Jul ’13 and Feb ‘14 positive outside month patterns, relative outperfor-mance to the S&P 500 Index and its peers support higher prices. Initial support is at 62 +/- 1 or near its prior breakout and 30-week ma. Secondary support is 53.76-55 or the Oct/Dec ’13 lows and then 46.75 or the Aug ’13 lows. Initialresistance is at 70-70.50 or near the Feb/Mar ’14 highs. Above this a rally to the low-80s is possible over time.



Wells Fargo & Co (WFC)

2010 2011 2012 2013 2014

1515

2020

2525

3030

3535

4040

4545

5050



First Second Third First Second Third 44.17-46.72 39.40-40.07 36-37 53-54 58-59 63-64



Rationale: A large ascending triangle and/or head and shoulders bottom pattern has developed over the past 4-plus years. A convincing surge above 36-37 in Mar 2013 confirms a major technical basing effort. This Financial namequickly rallied to resistance near its previous all-time highs of 44.68 established during Sep 2008. The sustainability ofthe stock above the Jun/Jul ‘13 highs attracted new buyers. Longer term projections well into the high 50s is possiblebased on the 4-year symmetrical triangle breakout. Initial support lies at 44.17-46.72 or near the Feb/Apr ‘14 low.

Wal-Mart Stores Inc. (WMT)

2010 2011 2012 2013 20144545

5050

5555

6060

6565

7070

7575

8080



First Second Third First Second Third 71.50 67-68 59.5-61.5 81.37 84-85 88-90



Rationale: We retain a cautiously optimistic outlook due to the completion of a thirteen year base breakout in year2012 along the mid-to-high 60s. Since the prior technical base is between low-40s and mid-to-high 60s a convincing move above mid-to-high 60s renders upside targets to the mid-80s and possibly to the low-90s, intermediate term. Although a 12/6/13 negative outside week pattern prompted a near-term consolidation, a positive outside Oct ’13 month and 3/21/14 positive outside week pattern would keep investors optimistic on the stock.



Exxon Mobil Corp (XOM)

2010 2011 2012 2013 2014

6060

7070

8080

9090

100100



First Second Third First Second Third 95 +/- 2 89.25 84.70 105-106 111-112 116-117



Rationale: We remain optimistic on XOM since a major technical breakout above 95-96 last year suggests the emer-gence of a leadership name within the Energy sector. This 8-year breakout renders upside targets to as high as 135-136, long-term. On a near-to-intermediate term basis, XOM have slipped below its prior breakout but is trading abovethe top of its 4-plus year triangle pattern in the high-90s. A convincing surge above 101-102 or the Dec ‘13/Jan ’14 highs keeps the bulls charged up. Initial support is now at 95 +/- 2 or near the Mar/Apr ’14 lows and 10/30-week ma.



Statement of Risk Stock market returns are difficult to forecast because of fluctuations in the economy, investor psychology, geopolit-ical conditions and other important variables.

Appendix Required Disclosures Technical Research Rating DefinitionsRating Corresponding

Rating Category

Definition and criteria

Bullish Buy Well-defined, reliable uptrend, an increase in the rate of change (or strong momentum) and confirming technical indicators

NeutralHold Trading range trend, a flat rate of change and confirming technical indicators

Bearish Sell Negative or weakened trend, momentum and confirming technical indicators

N/A Not enough historical data to make an evaluation

Description and Methodology This report provides technical analysis on a dynamic list of stocks that, we believe, are of a wide interest. Please note that technical views are highly variable and will change with market conditions. Accordingly, these ratings are only valid as of the publication date. Because CIO WMR equity sector analysts and WMR technical analysts employ different analytical methodologies, technical recommendations are, at times, contradictory to fundamental recommendations for the same security. For the latest company ratings by WMR sector analysts, please refer to the most recent equity sector research reports, located in the Equity Section on the Online Services Research website. For more background on the content of this report, please see Technical Analysis Research Primer, 18 February 2010.



Appendix

Term / Abbreviation Description / Definition

% +or- Moving Avg (DMA)

The percentage above or below the moving average (see Moving Average) is used to help measure an overbought or oversold condition and is a component of risk management. It is calculated by taking the difference between the group price and its 30-week moving average (see below), and then divid-ing by the 30-week moving average times 100.

30-Week Moving Average Also known as the 30-week line or 150-day line), this is one of the most popular and respected mov-ing average indicators (see Moving Average) in technical circles. It is calculated by totaling the latest 30 weekly (usually Friday closing) prices and dividing by 30 to arrive at the average. Each week, the most recent week’s figure is added to the total, and the price level from 30 weeks ago is subtracted –hence the term “moving.” Please note that a breakout above or breakdown below this line does not, in and of itself, constitute a buy or sell signal.

Adjusted Relative Strength (ARS) Number gives a 50% weighting to the 1-month relative strength, 30% to the 3-month, and 20% to the 6-month numbers to arrive at a single weighted number.

Base A chart pattern marking a period of accumulation following a downtrend. The larger the base, the greater the upside potential following its completion. A base can take many forms.

Beta A measure of volatility of a security as it relates to the market as a whole. Beta is often calculated using regression analysis. A beta is basically the tendency of a security’s returns to respond to swings in the market. A beta of 1 indicates that the security’s price will move with the market. A beta of less than 1 means the security will be less volatile than the market. A beta of greater than 1 implies that the security’s price will be more volatile than the market.

Blow off stage to a major rally This is often the last stage of a speculative bubble to a major rally. The blow off phase tends to be steep, but short-lived that often affords little opportunity for investors/traders to exit their positions. As price of a security or an asset advanced to an unsustainable level via a parabolic uptrend this give rise to the bursting of the speculative bubble resulting a quick and dramatic decline as inves-tors/traders try to exit the market/security at the same time.

Breakdown A technical term indicating a downside resolution of a chart pattern. Its significance is determined by the same factors governing a breakout.

Breakout A technical term indicating an upside resolution of a chart pattern. Breakouts can take many forms, and their degree of importance is determined by the significance of the chart pattern which preceded it.

Channel

A chart pattern comprised of two parallel trend lines, which form a trading band. Channels take the form of uptrend, downtrend and horizontal.

Death Cross The opposite of a golden cross, this is a crossover on the chart resulting from a security’s shorter-term moving average falling below its longer-term moving average. Technicians often see this as a bearish technical sign indicating the market has turned negative on the security.

Downtrend Line

A trend line connecting successively lower peaks for a stock (or market). Its technical significance is determined by the same factors governing an uptrend line.

Fibonacci Retracement Level A technical analysis term used to describe potential areas of support (price stops declining) or re-sistance (price stops rising) on the charts. After a strong rally or decline there is a tendency for a secu-rity to retrace a certain portion of its prior move (up or down). Fibonacci retracements use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before continuing in the original direction. These levels are computed by taking the two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.

FSR Forecast Stock Return is defined as expected percentage price appreciation plus gross dividend yield over the next 12 months.

Gap

An open space in a chart created when a stock (or market) opens either higher than its highest level attained during the prior session (referred to as a gap up or an upside chart gap) or lower than its lowest level reached during the prior day (called a gap down or a downside chart gap). Some gaps are caused by events and should be ignored: ex-dividend gaps, new share issues, and expiration of futures contracts.

Golden Cross A crossover on the chart that involves a security’s shorter-term moving average (such as the 50-day moving average) crossing above its longer-term moving average (such as the 150-day or 200-day moving average). Technicians often interpret this crossing of two moving averages as a bullish tech-nical sign that suggests the market has turned in favor of the security.



Appendix

Term / Abbreviation Description / Definition

Head-and-Shoulders Pattern This technical formation is one of the best known of the reversal patterns. There are two types of head-and-shoulders patterns that often appear on the charts – H/S top and H/S bottom. Both of these patterns often denote the process of a reversal either from a bullish or bearish trend. Head-and-shoulders formation often is comprised of a left shoulder, a head, and a right shoulder, and a line drawn across its shoulders defines its neckline. The breaking of the neckline to the upside confirms a head-and-shoulders bottom breakout, which signals the start of a bullish reversal favoring higher prices. The violation of neckline to the downside validates a head-and-shoulders top, reaffirming a bearish reversal of lower prices.

Internal Trend Line A single trend line connecting at least several high and low points for a stock (or market) over time.

Linear Regression Band A common statistical technique often used by investors/traders to better forecast values by utilizing the least squares fit method to plot a trend line. A linear regression band consists of upper and lower bands. These bands are calculated by computing the number of standard deviations above or below of the regression line.

Moving Average (m.a.) This is a technical indicator frequently used in technical analysis to show the average value of a secu-rity’s price over a set period of time. This tool is designed to smooth out a stock’s (or market’s) short-er-term fluctuations to provide a better picture of an underlying trend. Moving averages generally are used to measure momentum and define areas of possible support and resistance. Moving averages can be helpful as they emphasize the direction of the dominant or prevailing trend and also tend to smooth out price and volume fluctuations, or “noise,” giving the trader or investor a clearer picture of the security in question. Many moving averages exist.

MRA Market Return Assumption is defined as the one-year local market interest rate plus 5% (a proxy for the equity risk premium and not a forecast).

Neckline Support/Resistance This is a trend line that is drawn across the bottoms or tops of the left shoulder, the head and the right shoulder of a potential head-and-shoulders bottom or top pattern. When prices break through this neckline support level and continue falling after forming the right shoulder, it confirms a head-and-shoulders top formation. Conversely, neckline resistance is a trend line drawn across the tops of the left shoulder, the head and the right shoulder. When prices break above this neckline resistance level and keep on rising, it typically completes the head-and-shoulders bottom pattern.

Overbought A technical condition in which the price of a security has risen to such a degree that the price be-comes overvalued or has reached the upper band of its trading range resulting in a potential pullback in price.

Oversold Opposite of Overbought. A technical condition that occurs when the price of a security has fallen to such a degree that the price becomes undervalued or has reached the lower band of its trading range prompting a potential rally.

Positive/Negative “Outside” Day

When one day’s range (high and low) exceeds the prior day’s range, and the stock (or market) in question closes near its daily peak, this is referred to as a positive “outside” day. A negative “out-side” day would be recorded if the stock (or index) finished near its daily low after having a wider range than the prior session. The same rule can be applied on a weekly and monthly basis as well.

Relative Strength

Relative strength is a performance comparison between a sector, group, or stock and the S&P 500 Index over a specified time frame. Our time frame is often a one-, three-, and six-month basis but does vary according to investment orientation.

RRD Rating/Return Divergence is automatically appended to the rating when stock price movement has caused the prevailing rating to differ from that which would be assigned according to the rating sys-tem and will be removed when there is no longer a divergence, either through market movement or analyst intervention.

Support An area where increased buying interest is likely to develop during a decline. These points, which can take several forms (minor, major, etc.), often provide downside protection for an issue in a primary uptrend, but only temporary relief to an issue in a primary uptrend, during which time many support levels are often broken.

Top A chart pattern marking a period of distribution following an uptrend. The larger the top, the greater the downside potential following its completion. It, too, can take many forms.

Triangle Patterns There are three different types of Triangle patterns – Symmetrical, Descending and Ascending. Sym-metrical Triangle is considered to be a continuation pattern that often signals a period of consolida-tion in a trend followed by a resumption of the prior trend. It is formed by the convergence of a de-scending trend and an ascending trend. An Ascending Triangle is a bullish pattern, which is denoted by two trend lines – a flat trend line and an ascending uptrend line. A Descending Triangle is a bear-ish pattern. It is the opposite of the Ascending Triangle in that there is a flat trend line and a down-ward sloping downtrend line.



Appendix

Analyst certificationEach research analyst primarily responsible for the content of this research report, in whole or in part, certifies that withrespect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect hisor her personal views about those securities or issuers; and (2) no part of his or her compensation was, is, or will be, directlyor indirectly, related to the specific recommendations or views expressed by that research analyst in the research report.

Statement of RiskStock market returns are difficult to forecast because of fluctuations in the economy, investor psychology, geopoliticalconditions and other important variables.

Required Disclosures

For a complete set of required disclosures relating to the companies that are the subject of this report, please mail arequest to UBS CIO Wealth Management Research Business Management, 1285 Avenue of the Americas, 13th Floor,Avenue of the Americas, New York, NY 10019.CIO Wealth Management Research Stock recommendation systemAnalysts provide a relative rating, which is based on the stock’s total return potential against the total estimated returnof the appropriate sector benchmark over the next 12 months.

Industry sector relative stock view systemOutperform (OUT) Expected to outperform the sector benchmark over the next 12 months.Marketperform (MKT) Expected to perform in line with the sector benchmark over the next 12 months.Underperform (UND) Expected to underperform the sector benchmark over the next 12 months.Under reviewUpon special events that require further analysis, the stock rating may be flagged as “Under review” by the analyst.SuspendedAn outperform or underperform rating may be suspended when the stock's performance materially diverges from theperformance of its respective benchmark.RestrictedIssuing of research on a company by WMR can be restricted due to legal, regulatory, contractual or best business practiceobligations which are normally caused by UBS Investment Bank’s involvement in an investment banking transaction inregard to the concerned company.

Sector bellwethers, or stocks that are of high importance or relevance to the sector, that are not placed on either theoutperform or underperform list (i.e., are not expected to either outperform or underperform the sector benchmark) willbe classified as marketperform. Stocks that are rated Marketperform that are not sector bellwethers are not assigneda price target.

High Conviction CallsSector analysts are required to have at least one "high conviction" outperform or underperform call for each sector theycover. Analysts have discretion over the selection of a recommendation as high conviction and the grounds for selection(e.g., greatest upside/downside to price target, most/least compelling investment case, etc.). The basis for each highconviction call is set forth in any research report identifying a recommendation as such.

Disclosures (4 May 2014)3M Company 9, 11, 14, 15, 16, 17, 19, 21; Altria Group 14, 15, 16, Amazon.com 14, 15, 16, Amgen Inc. 9, 11, 13, 14,15, 16, 17, 19, Anadarko Petroleum Corp. 3, 11, 13, 14, 15, 16, 17, 20, AstraZeneca 14, 15, 16, AT&T Inc. 9, 10, 11,13, 14, 15, 16, 17, 19, 20, Bank of America Corp. 9, 10, 11, 13, 14, 15, 16, 17, 19, 20, 21; Berkshire Hathaway Inc. 11,16, 17, BP 2, 9, 13, 16, 19, 21; Bristol-Myers Squibb 9, 10, 11, 14, 15, 16, 17, 19, 21; Campbell Soup Co. 9, 10, 11, 13,14, 15, 16, 17, 19, Caterpillar Inc. 10, 14, 15, 16, 17, 18, 20, Celgene Corporation 9, 10, 11, 16, 17, 19, CenturyLink,Inc. 9, 10, 16, 17, 19, 20, Chevron Corp. 10, 11, 13, 14, 15, 16, 17, Citigroup Inc 9, 10, 11, 13, 14, 15, 16, 17, 19, 21;ConocoPhillips 9, 10, 11, 16, 17, 19, Costco 14, 15, 16, CSX Corp. 3, 9, 14, 15, 16, 19, 21; CVS Caremark Corporation14, 15, 16, Deere & Co. 14, 15, 16, 18, Diageo 2, 9, 13, 16, 19, Dominion Resources 9, 10, 11, 13, 14, 15, 16, 17, 19,21; Dow Chemical 10, 11, 14, 15, 16, 17, 18, Duke Energy 9, 13, 14, 15, 16, 19, 21; E I du Pont de Nemours and Co 9,10, 11, 14, 15, 16, 17, 18, 19, Emerson Electric Co. 9, 11, 16, 17, EOG Resources 9, 13, 14, 15, 16, 19, 21; ExxonMobilCorp. 10, 14, 15, 16, 17, 20, Facebook 16, Ford Motor Co. 9, 10, 11, 16, 17, Franklin Resources Inc 10, 11, 14, 15, 16,17, General Mills Inc. 10, 11, 14, 15, 16, 17, Gilead Sciences 16, GlaxoSmithKline 2, 9, 13, 16, 19, Home Depot Inc. 14,15, 16, Honeywell International Inc. 10, 14, 15, 16, 17, Illinois Tool Works 4, 9, 13, 16, International Business MachinesCorp. 7, 9, 10, 11, 14, 15, 16, 17, Johnson & Johnson 14, 15, 16, Kimberly-Clark 11, 14, 15, 16, 17, Limited Brands, Inc.



Appendix

9, 16, 19, McDonalds Corp. 14, 15, 16, McGraw-Hill Companies 13, 14, 15, 16, Merck & Co. 9, 10, 11, 14, 15, 16, 17,18, 19, 21; Nestlé 3, 13, 14, 15, 18, 19, 20, 21; Nextera Energy Inc. 9, 16, 19, Novartis 3, 9, 12, 13, 16, 18, 19, 20, 21;Occidental Petroleum Corp. 9, 13, 16, Oracle Corporation 10, 11, 14, 15, 16, 17, PepsiCo Inc. 9, 10, 11, 13, 14, 15, 16,17, 19, 21; Pfizer Inc. 10, 14, 15, 16, 17, Philip Morris International 9, 13, 14, 15, 16, 19, 21; Procter & Gamble 9, 10,11, 14, 15, 16, 17, 19, 21; Royal Dutch Shell 9, 16, Schlumberger Ltd. 14, 15, 16, St. Jude Medical, Inc. 16, StarbucksCorp. 11, 16, 17, Target Corporation 16, 20, Teva Pharmaceuticals 16, TOTAL 7, 13, 16, Travelers Companies 3, 9, 10,11, 14, 15, 16, 17, U.S. Bancorp 9, 10, 13, 14, 15, 16, 17, 19, Union Pacific Corp. 14, 15, 16, United Parcel Service 9,10, 11, 13, 14, 15, 16, 17, 19, Verizon Communications 9, 11, 13, 14, 15, 16, 17, 19, 21; Visa Inc. 9, 10, 11, 16, 17,Vodafone Group 1, 2, 3, 5, 6, 7, 13, 16, 19, Walgreen Co. 14, 15, 16, Wal-Mart Stores 9, 10, 11, 14, 15, 16, 17, 19,Walt Disney Co. 8, 14, 15, 16, Wells Fargo & Company 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21;

1. UBS Limited is advising Grupo Corporativo ONO on its announced agreement to be acquired by Vodafone.2. UBS Limited acts as broker to this company.3. UBS AG, its affiliates or subsidiaries beneficially owned 1% or more of a class of this company's common equitysecurities as of last month's end (or the prior month's end if this report is dated less than 10 days after the most recentmonth's end).4. UBS Securities LLC is a named advisor to Clayton, Dubilier & Rice for its announced agreement to acquire WilsonartInternational from Illinois Tool Works and is also providing financing.5. UBS Limited is acting as agent on Vodafone Group Plc's announced share buyback programme.6. UBS Limited is advising Vodafone in respect of its discussions with Kabel Deutschland Holding AG7. An employee of UBS AG is an officer, director, or advisory board member of this company.8. The U.S. equity strategist, a member of his team, or one of their household members has a long common stock positionin The Walt Disney Company.9. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment bankingservices are being, or have been, provided.10. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investmentbanking securities-related services are being, or have been, provided.11. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securitiesservices are being, or have been, provided.12. UBS AG is acting as agent in regard to Novartis AG's announced share buyback programme.13. UBS AG, its affiliates or subsidiaries expect to receive or intend to seek compensation for investment banking servicesfrom this company/entity within the next three months.14. This company/entity is, or within the past 12 months has been, a client of UBS Financial Services Inc, and non-investment banking securities-related services are being, or have been, provided.15. Within the past 12 months, UBS Financial Services Inc has received compensation for products and services otherthan investment banking services from this company.16. UBS Securities LLC makes a market in the securities and/or ADRs of this company.17. Within the past 12 months, UBS Securities LLC has received compensation for products and services other thaninvestment banking services from this company/entity.18. The equity analyst covering this company, a member of his or her team, or one of their household members has along common stock position in this company.19. Within the past 12 months, UBS AG, its affiliates or subsidiaries has received compensation for investment bankingservices from this company/entity.20. UBS AG, its affiliates or subsidiaries held other significant financial interests in this company/entity as of last month'send (or the prior month's end if this report is dated less than 10 working days after the most recent month's end).21. UBS AG, its affiliates or subsidiaries has acted as manager/co-manager in the underwriting or placement of securitiesof this company/entity or one of its affiliates within the past 12 months.



Appendix

Disclaimer

In certain countries UBS AG is referred to as UBS SA. This publication is for our clients’ information only and is not intended as an offer, or asolicitation of an offer, to buy or sell any investment or other specific product. It does not constitute a personal recommendation or take intoaccount the particular investment objectives, financial situation and needs of any specific recipient. We recommend that recipients take financialand/or tax advice as to the implications of investing in any of the products mentioned herein. We do not provide tax advice. The analysis containedherein is based on numerous assumptions. Different assumptions could result in materially different results. Other than disclosures relating toUBS AG, its subsidiaries and affiliates, all information expressed in this document were obtained from sources believed to be reliable and ingood faith, but no representation or warranty, express or implied, is made as to its accuracy or completeness. All information and opinions arecurrent only as of the date of this report, and are subject to change without notice. This publication is not intended to be a complete statementor summary of the securities, markets or developments referred to in the report. Opinions may differ or be contrary to those expressed byother business areas or groups of UBS AG, its subsidiaries and affiliates. Chief Investment Office Wealth Management Research Americas(CIO WMRA) is written by Wealth Management & Swiss Bank and Wealth Management Americas. UBS Investment Research is written byUBS Investment Bank. The research process of Except for economic forecasts, CIO WMRA is independent of UBS Investment Research.As a consequence research methodologies applied and assumptions made by CIO WMRA and UBS Investment Research may differ, forexample, in terms of investment horizon, model assumptions, and valuation methods. Therefore investment recommendations independentlyprovided by the two UBS research organizations can be different. The analyst(s) responsible for the preparation of this report may interact withtrading desk personnel, sales personnel and other constituencies for the purpose of gathering, synthesizing and interpreting market information.The compensation of the analyst(s) who prepared this report is determined exclusively by research management and senior management (notincluding investment banking). Analyst compensation is not based on investment banking revenues, however, compensation may relate to therevenues of UBS as a whole, of which investment banking, sales and trading are a part.UBS AG, its affiliates, subsidiaries and employees may trade as principal and buy and sell securities identified herein. At any time, investmentdecisions (including whether to buy, sell or hold securities) made by UBS AG, its affiliates, subsidiaries and employees may differ from or becontrary to the opinions expressed in UBS research publications. Some investments may not be readily realizable since the market in the securitiesis illiquid and therefore valuing the investment and identifying the risk to which you are exposed may be difficult to quantify. UBS relies oninformation barriers to control the flow of information contained in one or more areas within UBS, into other areas, units, groups or affiliates ofUBS. Some investments may be subject to sudden and large falls in value and on realization you may receive back less than you invested or maybe required to pay more. Changes in foreign currency exchange rates may have an adverse effect on the price, value or income of an investment.Past performance of an investment is not a guide to its future performance. Additional information will be made available upon request. Thisreport is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not beeligible for sale in all jurisdictions or to all categories of investors. Distributed to US persons by UBS Financial Services Inc., a subsidiary of UBS AG.UBS Securities LLC is a subsidiary of UBS AG and an affiliate of UBS Financial Services Inc. UBS Financial Services Inc. accepts responsibility forthe content of a report prepared by a non-US affiliate when it distributes reports to US persons. All transactions by a US person in the securitiesmentioned in this report should be effected through a US-registered broker dealer affiliated with UBS, and not through a non-US affiliate. Thecontents of this report have not been and will not be approved by any securities or investment authority in the United States or elsewhere.Version as per January 2014.UBS specifically prohibits the redistribution or reproduction of this material in whole or in part without the prior written permission of UBS andUBS accepts no liability whatsoever for the actions of third parties in this respect.© UBS 2014. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.



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