Technical Analysis: Inflection Points

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Ari H. Wald, CFA, CMT April 3, 2021

Technical Analysis: Inflection Points

NASDAQ Steadiness Still Underappreciated

We expect broad-based participation to continue, and are bullish on a

balance of high-beta cyclicals and high-earnings growth. Our attraction

toward the latter is in case the upward trajectory in rates doesn’t move in

a straight line. While some have worried that the NASDAQ-100’s relative

ratio has moderated near its year-2000 peak, we think the steadiness of

the index’s ascent remains underappreciated. Buy

ARKK

.

Sector Pairs: A top

Buy

idea and a top

Sell

idea vs. each S&P 500 sector:

ENR (

HES

,

COG

), MAT (

SCCO

,

NEM

), IND (

UBER

,

VRSK

), DIS (

TSLA

,

DPZ

)

STA (

EL

,

K

), HLC (

CI

,

NVS

), FIN (

BX

,

MKTX

), REITs (

EXR

,

ARE

)

TEC (

SQ

,

FIS

), CSV (

GOOG

,

BCE

), UTL (

AES

,

D

)

New to the 50/50 List: Large-caps

Added Buys: HES, CI, ENPH, GOOG, AES

Removed Buys: WMB, IQV, OKTA, NFLX, AWK

Added Sells: NOV, ROP, CSGP, VRSK, DPZ, UAA, UL, MRK, CERN, MKTX, DLR, FIS

Removed Sells: CEO, LMT, NOC, MAS, MCD, DLTR, SJM, BAX, XRAY, PRU, IRM,

CSCO

Underlined tickers rated Outperform by OPCO research

Inflection Points Topics:

 Market Indicators

 Large-cap 50/50

 SMID-cap 50/50

 Sector MO Ranks

 The OPCO Trifecta

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Green Shoots for a Leadership Change

We remain bullish on a balance of high-beta cyclicals and high-earnings growth. Conversely, we expect low-volatility defensives to rise at a

lesser pace. With interest rates a key driver of market rotations, we like beta’s pure exposure to the market’s recovery, and like growth in

case the upward trajectory in rates doesn’t move in a straight line. Technology may not be the top performer when rates are rising and

the market is swinging toward risk, but we expect the sector to post some of the steadier returns through the course of the cycle. For the

S&P 500, we see 3,881 (50-day average) as the start of support and little identifiable resistance.

Source: Oppenheimer & Co. and Bloomberg

High-Beta vs. Low-Volatility

We see Beta + Growth as an attractive portfolio balance

S&P 500

w/ 50-day m.a.

Russell 1000: Value vs. Growth

(Submitted before Thursday’s close)

Both Beta and Growth ticked higher last week

2

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Close to Firing on All Cylinders Again

While we like to deliberate about relative returns, participating in what we see as a broad-based market advance should prove most

rewarding of all, in our view. We see signs that Q1 laggards,

QQQ

and

SPLV

, are rejoining

IWD

and

SPHB

in the advance.

Source: Oppenheimer & Co. and Bloomberg.

S&P High-Beta (

SPHB

)

NASDAQ-100 (

QQQ

)

iShares Russell 1000 Value (

IWD

)

All charts w/ 200-day m.a.

S&P Low-Volatility (

SPLV

)

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Rising Rates Is Consensus

Our analysis indicates that the most consensus market call is for rising interest rates. This is based on one of the sentiment polls we

closely follow. Specifically, the percentage of bullish respondents toward Treasury bond prices is at one of its lowest levels in the history of

the Consensus poll going back to 1983 (plotted on an inverted scale to align with Treasury yields). Although typically a contrarian signal,

our read of the chart shows little evidence (yet) of a downside reversal in the 10-year yield. At the least, it leads us to expect the rally in

the 10-year rate to moderate sideways with a near-term ceiling at 2% resistance (Nov. 2019 peak).

Source: Oppenheimer & Co., Consensus Inc., and Bloomberg. These results cannot and should not be viewed as an indicator of future performance.

% Bullish Sentiment: Inverted

CONSENSUS draws from an extensive mix of both brokerage house analysts and independent advisory services

10-year US Treasury Yield

Expect Higher Prices / Lower Yields

Expect Lower Prices / Higher Yields

Extreme sentiment makes 2% a formidable test

4

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NASDAQ Steadiness Still Underappreciated

Technology’s near-zero correlation to the 10-year Treasury yield over the last decade makes the sector an attractive idea should the rally in

rates start to slow. But, is there a bubble in Tech? We think far from it. While some have worried that the NASDAQ-100 (

QQQ

) vs. S&P

500 ratio has moderated near its year-2000 peak, we

reiterate

our view that the steadiness of QQQ’s ascent is an underappreciated point.

For instance, the 1-, 2-, 3-, 4-, and 5-year returns for QQQ into its March 2000 peak were 120%, 288%, 475%, 673%, and 950%, respectively,

vs. current readings of 68%, 76%, 100%, 142%, and 193%. Consider also that it took the QQQ vs. SPX ratio 18 years between 2002 and

2020 to climb the same distance the ratio achieved in two years between 1998 and 2000. In addition, we still argue that the notable 2020

jump in the ratio was

inflated by weakness

in value rather than abnormal strength in growth.

NASDAQ-100 (QQQ) vs. S&P 500

A far cry from the late-1990’s froth:

QQQ is up 100% over last 36 months

<

the gain in final 12 months into 2000 peak

NASDAQ-100:

3-Year % Rate-of-Change

475%

100%

Inflated by weakness in value

18 Years

2 Years

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Bullish Inflection Point for ARKK

For exposure to high-growth, we recommend buying the pullback in the ARK Innovation ETF (

ARKK

) because the ETF has corrected into

the bullish slope of its smoothed trend—we define this as a near-term opportunity to buy long-term strength. We’re also encouraged

about a “bullish divergence” in the ETF’s relative ratio vs. the S&P 500; the failure for RSI to follow relative price to a new low indicates

selling intensity is waning. For trading levels, a rally above $131 (mid-March peak) would complete a double-bottom pattern that has

emerged above $106 support (200-day average), in our view. Finally, ARKK maintained its MO score of 1 in our latest

Global ETF Tracker

,

and we favorably highlight the ETF’s top two weights in this week’s report: Tesla, Inc. (

TSLA

) and Square, Inc. (

SQ

).

ARK Innovation ETF (ARKK)

w/ 200-day m.a.

This is called a bullish divergence

Relative to S&P 500

w/ 200-day m.a.

14-day RSI

Top sector weights: HLC (30%), TEC (28%), CSV (23%), DIS (11%)

(Submitted before Thursday’s close)

6

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New to the 50/50 List: Large-caps

Universe: S&P 500 + Russell Large-caps + Large-cap ADRs

This month’s changes to our list of 50 buys and 50 sells are included below. The full large-cap list is printed on the

following page and consists of a diversified mix of relative trends, both emerging and established, from all sectors.

This list adopts a market-neutral and sector-neutral stance by providing the same number of buy and sell ideas. The

changes listed below are sorted by sector, then by market cap.

Ticker

Name

Sector

Ticker

Name

Sector

HES

HESS CORP

Energy

WMB

WILLIAMS COS INC

Energy

CI

CIGNA CORP

Health Care

IQV

IQVIA HOLDINGS INC

Health Care

ENPH

ENPHASE ENERGY INC

Information Technology

OKTA

OKTA INC

Information Technology

GOOG

ALPHABET INC-CL C

Communication Services

NFLX

NETFLIX INC

Communication Services

AES

AES CORP

Utilities

AWK

AMERICAN WATER WORKS CO INC Utilities

Ticker

Name

Sector

Ticker

Name

Sector

NOV

NOV INC

Energy

CEO

CNOOC LTD-SPON ADR

Energy

ROP

ROPER TECHNOLOGIES INC

Industrials

LMT

LOCKHEED MARTIN CORP

Industrials

CSGP

COSTAR GROUP INC

Industrials

NOC

NORTHROP GRUMMAN CORP

Industrials

VRSK

VERISK ANALYTICS INC

Industrials

MAS

MASCO CORP

Industrials

DPZ

DOMINO'S PIZZA INC

Consumer Discretionary

MCD

MCDONALD'S CORP

Consumer Discretionary

UAA

UNDER ARMOUR INC-CLASS A

Consumer Discretionary

DLTR

DOLLAR TREE INC

Consumer Discretionary

UL

UNILEVER PLC-SPONSORED ADR

Consumer Staples

SJM

JM SMUCKER CO/THE

Consumer Staples

MRK

MERCK & CO. INC.

Health Care

BAX

BAXTER INTERNATIONAL INC

Health Care

CERN

CERNER CORP

Health Care

XRAY

DENTSPLY SIRONA INC

Health Care

MKTX

MARKETAXESS HOLDINGS INC

Financials

PRU

PRUDENTIAL FINANCIAL INC

Financials

DLR

DIGITAL REALTY TRUST INC

Real Estate

IRM

IRON MOUNTAIN INC

Real Estate

FIS

FIDELITY NATIONAL INFO SERV

Information Technology

CSCO

CISCO SYSTEMS INC

Information Technology

Added Buys

Removed Buys

(8)

Ticker Name Industry MO Score Date Added M.Cap

($B) Ticker Name Industry

MO Score Date Added M.Cap ($B) HES HESS CORP Oil & Gas Exploration & Produc 3 1-Apr-21 21.8 PBR PETROLEO BRASILEIRO-SPON ADR Integrated Oil & Gas 5 26-Feb-21 55.0 HAL HALLIBURTON CO Oil & Gas Equipment & Services 2 4-Dec-20 19.0 COG CABOT OIL & GAS CORP Oil & Gas Exploration & Produc 4 4-Dec-20 7.6 LNG CHENIERE ENERGY INC Oil & Gas Storage & Transporta 2 2-Oct-20 18.1 NOV NOV INC Oil & Gas Equipment & Services 5 1-Apr-21 5.3

SCCO SOUTHERN COPPER CORP Metals & Mining 1 22-Jan-21 53.1 NEM NEWMONT CORP Metals & Mining 5 26-Feb-21 48.2

FCX FREEPORT-MCMORAN INC Metals & Mining 1 4-Dec-20 48.2 IFF INTL FLAVORS & FRAGRANCES Chemicals 5 28-Aug-20 34.7

UNP UNION PACIFIC CORP Road & Rail 313-Mar-20 147.3 MMM 3M CO Industrial Conglomerates 4 4-Dec-20 111.5

UBER UBER TECHNOLOGIES INC Road & Rail - 26-Feb-21 100.1 ROP ROPER TECHNOLOGIES INC Industrial Conglomerates 4 1-Apr-21 42.3

CMI CUMMINS INC Machinery 1 24-Jul-20 38.3 CSGP COSTAR GROUP INC Professional Services 3 1-Apr-21 32.1

ROK ROCKWELL AUTOMATION INC Electrical Equipment 315-May-20 30.8 VRSK VERISK ANALYTICS INC Professional Services 5 1-Apr-21 28.7 URI UNITED RENTALS INC Trading Companies & Distributo 1 6-Nov-20 23.7 ROL ROLLINS INC Commercial Services & Supplies 3 26-Feb-21 17.0 AMZN AMAZON.COM INC Internet & Direct Marketing Re 2 19-Jun-15 1565.2 QSR RESTAURANT BRANDS INTERN Hotels, Restaurants & Leisure 4 6-Nov-20 30.9

TSLA TESLA INC Automobiles 1 17-Apr-20 634.0 DPZ DOMINO'S PIZZA INC Hotels, Restaurants & Leisure 5 1-Apr-21 14.3

HLT HILTON WORLDWIDE HOLDINGS IN Hotels, Restaurants & Leisure 2 26-Feb-21 34.1 UAA UNDER ARMOUR INC-CLASS A Textiles, Apparel & Luxury Goo 2 1-Apr-21 9.1

PTON PELOTON INTERACTIVE INC-A Leisure Products - 26-Feb-21 32.9 LEG LEGGETT & PLATT INC Household Durables 4 4-Dec-20 6.1

DHI DR HORTON INC Household Durables 2 22-Jan-21 32.3 HRB H&R BLOCK INC Diversified Consumer Services 5 13-Dec-19 3.9

COST COSTCO WHOLESALE CORP Food & Staples Retailing 4 13-Apr-18 156.8 KO COCA-COLA CO/THE Beverages 5 17-Apr-20 227.7

EL ESTEE LAUDER COMPANIES-CL A Personal Products 2 28-Aug-20 106.8 UL UNILEVER PLC-SPONSORED ADR Personal Products 5 1-Apr-21 147.9

KHC KRAFT HEINZ CO/THE Food Products 3 26-Feb-21 49.1 K KELLOGG CO Food Products 5 4-Dec-20 21.5

MNST MONSTER BEVERAGE CORP Beverages 2 26-Feb-21 48.2 CPB CAMPBELL SOUP CO Food Products 5 22-Jan-21 15.4

UNH UNITEDHEALTH GROUP INC Health Care Providers & Servic 4 13-Dec-19 352.5 NVS NOVARTIS AG-SPONSORED ADR Pharmaceuticals 5 26-Feb-21 211.3 ISRG INTUITIVE SURGICAL INC Health Care Equipment & Suppli 3 28-Aug-20 87.0 MRK MERCK & CO. INC. Pharmaceuticals 5 1-Apr-21 194.4

CI CIGNA CORP Health Care Providers & Servic 4 1-Apr-21 83.9 SNY SANOFI-ADR Pharmaceuticals 5 22-Jan-21 124.4

EW EDWARDS LIFESCIENCES CORP Health Care Equipment & Suppli 4 28-Aug-20 52.0 GSK GLAXOSMITHKLINE PLC-SPON ADR Pharmaceuticals 5 19-Jun-20 91.0 ALGN ALIGN TECHNOLOGY INC Health Care Equipment & Suppli 1 4-Dec-20 42.4 CERN CERNER CORP Health Care Technology 5 1-Apr-21 22.0 ABMD ABIOMED INC Health Care Equipment & Suppli 1 22-Jan-21 14.4 HSIC HENRY SCHEIN INC Health Care Providers & Servic 5 4-Dec-20 9.7

JPM JPMORGAN CHASE & CO Banks 2 26-Feb-21 465.1 LFC CHINA LIFE INSURANCE CO-ADR Insurance 5 26-Feb-21 116.6

MS MORGAN STANLEY Capital Markets 1 4-Dec-20 146.8 MCO MOODY'S CORP Capital Markets 4 26-Feb-21 55.8

BX BLACKSTONE GROUP INC/THE Capital Markets 3 24-Jul-20 89.7 STT STATE STREET CORP Capital Markets 4 6-Nov-20 29.8

KKR KKR & CO INC Capital Markets 2 6-Nov-20 42.7 NTRS NORTHERN TRUST CORP Capital Markets 4 26-Feb-21 21.8

MSCI MSCI INC Capital Markets 313-Mar-20 34.8 MKTX MARKETAXESS HOLDINGS INC Capital Markets 2 1-Apr-21 19.1

SIVB SVB FINANCIAL GROUP Banks 1 28-Aug-20 26.5 UNM UNUM GROUP Insurance 3 2-Aug-19 5.7

PLD PROLOGIS INC Industrial REITs 4 22-Jan-21 78.1 DLR DIGITAL REALTY TRUST INC Specialized REITs 5 1-Apr-21 40.4

CBRE CBRE GROUP INC - A Real Estate Services 2 4-Dec-20 26.3 O REALTY INCOME CORP Retail REITs 5 4-Dec-20 23.7

EXR EXTRA SPACE STORAGE INC Specialized REITs 3 26-Feb-21 17.5 ARE ALEXANDRIA REAL ESTATE EQUIT Office REITs 5 26-Feb-21 22.6

AAPL APPLE INC Technology Hardware, Storage & 113-Mar-20 2065.3 INTC INTEL CORP Semiconductors & Semiconductor 5 4-Dec-20 259.8

MSFT MICROSOFT CORP Software 2 26-Oct-18 1774.0 SAP SAP SE-SPONSORED ADR Software 5 4-Dec-20 150.3

NVDA NVIDIA CORP Semiconductors & Semiconductor 1 4-Oct-19 328.8 IBM INTL BUSINESS MACHINES CORP IT Services 5 17-Apr-20 119.1 AVGO BROADCOM INC Semiconductors & Semiconductor 1 4-Dec-20 189.4 FIS FIDELITY NATIONAL INFO SERV IT Services 5 1-Apr-21 88.0

SQ SQUARE INC - A IT Services 1 2-Oct-20 104.7 VMW VMWARE INC-CLASS A Software 5 22-Jan-21 62.6

AMD ADVANCED MICRO DEVICES Semiconductors & Semiconductor 3 17-Apr-20 94.4 VRSN VERISIGN INC IT Services 5 4-Dec-20 22.5

LRCX LAM RESEARCH CORP Semiconductors & Semiconductor 1 2-Aug-19 85.5 AKAM AKAMAI TECHNOLOGIES INC IT Services 5 6-Nov-20 16.7 SWKS SKYWORKS SOLUTIONS INC Semiconductors & Semiconductor 2 22-Jan-21 30.2 NLOK NORTONLIFELOCK INC Software 5 26-Feb-21 12.4 ENPH ENPHASE ENERGY INC Semiconductors & Semiconductor 1 1-Apr-21 21.4 JNPR JUNIPER NETWORKS INC Communications Equipment 5 5-Apr-19 8.3 GOOG ALPHABET INC-CL C Interactive Media & Services 1 1-Apr-21 1401.4 VZ VERIZON COMMUNICATIONS INC Diversified Telecommunication 5 22-Jan-21 240.9 TCEHY TENCENT HOLDINGS LTD-UNS ADR Interactive Media & Services 115-May-20 761.0 T AT&T INC Diversified Telecommunication 5 19-Jun-20 216.8 TMUS T-MOBILE US INC Wireless Telecommunication Ser 313-Mar-20 155.8 AMX AMERICA MOVIL-SPN ADR CL L Wireless Telecommunication Ser 5 22-Jan-21 45.8

TTWO TAKE-TWO INTERACTIVE SOFTWRE Entertainment 2 6-Nov-20 20.5 BCE BCE INC Diversified Telecommunication 5 4-Dec-20 41.1

NEE NEXTERA ENERGY INC Electric Utilities 412-May-17 147.4 D DOMINION ENERGY INC Multi-Utilities 5 4-Dec-20 60.8

BIP BROOKFIELD INFRASTRUCTURE PA Multi-Utilities 3 22-Jan-21 22.2 ED CONSOLIDATED EDISON INC Multi-Utilities 515-May-20 25.5

AES AES CORP Independent Power Producers & 1 1-Apr-21 18.3 EIX EDISON INTERNATIONAL Electric Utilities 5 6-Nov-20 22.4

MO is based on a stock's 6-, 9-, and 12-month risk-adjusted return with the last month removed (quintile readings, top score = 1). Select stocks may have been removed from the S&P 500 since being added to this list. Source: Oppenheimer & Co. & Bloomberg.

Consumer

Discretionary

Top 50 Buy Ideas (S&P 500)

Top 50 Sell Ideas (S&P 500)

Energy

Materials

Industrials

Utilities

Consumer

Staples

Health Care

Financials

REITs

Technology

Comm

Services

8 Technical Analysis

(9)

Energy: HES over COG

Hess Corp. (HES):

Buy

Cabot Oil & Gas Corp. (COG): Sell

Breaking out vs. the sector

Relative to Energy

Relatively weak

All panels w/ 200-day m.a.

(10)

Materials: SCCO over NEM

Southern Copper Co. (SCCO):

Buy

Newmont Corp. (NEM): Sell

Relative to Materials

NT opportunity to

buy LT strength

Bearish below the 200-day

Relative to Materials

10

(11)

Industrials: UBER over VRSK

Uber Technologies, Inc. (UBER):

Buy

Verisk Analytics, Inc. (VRSK): Sell

We expect a resumption

of its Q4 breakout

Relative to Industrials

Bearish below the 200-day

(12)

Cons Discretionary: TSLA over DPZ

Tesla, Inc. (TSLA):

Buy

Domino’s Pizza, Inc. (DPZ): Sell

NT opportunity to

buy LT strength

Relative to Cons Discretionary

Bearish below the 200-day

Relative to Cons Discretionary

12

(13)

Cons Staples: EL over K

Estee Lauder Cos., Inc. (EL):

Buy

Kellogg Co. (K): Sell

Bullish “pennant” pattern

Relative to Cons Staples

Sell into falling 200-day

(14)

Health Care: CI over NVS

Cigna Corp. (CI):

Buy

Novartis AG (NVS): Sell

Source: Oppenheimer & Co. and Bloomberg. All panels w/ 200-day m.a.

Relative to Health Care

We think this is finally “it”

Bearish below the 200-day

Relative to Health Care

14

(15)

Financials: BX over MKTX

Blackstone Group, Inc. (BX):

Buy

MarketAxess Holdings, Inc. (MKTX): Sell

Rotation potential

vs. a strong sector

Bearish below the 200-day

Relative to Financials

(16)

REITs: EXR over ARE

Extra Space Storage, Inc. (EXR):

Buy

Alexandria Real Estate Equities, Inc. (ARE): Sell

Relative to REITs

Stick with the

breakout

Breaking down

relatively

Relative to REITs

16

(17)

Technology: SQ over FIS

Square, Inc. (SQ):

Buy

Fidelity National Info. Services, Inc. (FIS): Sell

It’s a relative issue

NT opportunity to

buy LT strength

Relative to Technology

(18)

Communication Services: GOOG over BCE

Alphabet, Inc. (GOOG):

Buy

BCE, Inc. (BCE): Sell

It’s a relative issue

Bullish “pennant” pattern

Relative to

Communication Services

Relative to

Communication Services

18 Technical Analysis

(19)

Utilities: AES over D

AES Corp. (AES):

Buy

Dominion Energy, Inc. (D): Sell

Sell into falling 200-day

Consolidation should

break higher

(20)

Sector & Industry Snapshot: week of April 2

Our Sector & Industry Snapshot is a current and concise overview of the leaders and laggards

throughout the equity market. As a proxy for trend and momentum, this tool screens a

comprehensive list of broad market indexes, S&P sectors (relative to SPX), and all GICS level 3

industries relative to their respective sector. It is designed to be a differentiated performance

table and an unbiased starting point to help generate trend-following or mean-reverting ideas.

 RSI calculates the avg. gain / avg. loss in a security over a specified period; in this case 14 weeks. High

readings (colored red; above 60) mark overbought and low readings (colored green; below 40) mark

oversold. Neutral readings are colored yellow (between 40 and 60).

 As a proxy for Trend we use the crossover between the 50-day and 200-day moving average. A positive

percentage (colored green) indicates how far the 50D is above the 200D and a negative percentage

(colored red) indicates how far the 50D is below the 200D.

Absolute Price Momentum RSI Trend Industry (GICL3) vs. Sector (GICL1) RSI Trend Industry (GICL3) vs. Sector (GICL1) RSI Trend

10-Year U.S. Treasury Yield 78 53% Paper & Forest Products 71 11% Health Care Providers & Services 61 2% S&P 500 Index 66 9% Metals & Mining 62 6% Life Sciences Tools & Services 50 4% WTI Crude Oil future 63 28% Construction Materials 53 7% Health Care Equipment & Supplies 49 1% U.S. Dollar Index (DXY) 57 -1% Containers & Packaging 40 -2% Health Care Technology 45 2%

Gold spot 40 -5% Chemicals 40 -2% Biotechnology 44 -4%

Pharmaceuticals 39 -2% Relative to S&P 500 RSI Trend Industry (GICL3) vs. Sector (GICL1) RSI Trend

S&P 500 Equal Weight 66 4% Construction & Engineering 67 12% Industry (GICL3) vs. Sector (GICL1) RSI Trend

S&P 400 Mid Cap 65 8% Airlines 62 15% Commercial Banks 65 7% S&P 600 Small Cap 63 15% Machinery 59 4% Consumer Finance 57 5% Russell 2000 58 14% Building Products 58 2% Thrifts & Mortgage Finance 47 1% Dow Jones Industrial Average 54 0% Trading Companies & Distributors 56 0% Capital Markets 42 -3%

NASDAQ-100 46 0% Electrical Equipment 51 3% Diversified Financial Services 40 -7%

MSCI EAFE Developed Markets 41 0% Road & Rail 49 -3% Insurance 31 -7%

S&P 100 Index 40 -1% Industrial Conglomerates 48 2%

MSCI Emerging Markets 39 3% Marine 46 13% Industry (GICL3) vs. Sector (GICL1) RSI Trend

Aerospace & Defense 45 -4% Real Estate Management & Develop 65 21%

Relative to S&P 500 RSI Trend Air Freight & Logistics 41 -6% Equity REITs 35 -1%

Financials 63 9% Professional Services 41 -4%

Industrials 63 2% Commercial Services & Supplies 32 -6% Industry (GICL3) vs. Sector (GICL1) RSI Trend

Energy 57 13% Electronic Equipment 64 9%

Materials 54 1% Industry (GICL3) vs. Sector (GICL1) RSI Trend Semis & Semi Equipment 60 6% Communication Services 54 3% Speciality Retail 63 1% Communications Equipment 56 0%

REITs 48 -4% Household Durables 62 6% IT Services 48 -2%

Technology 48 0% Leisure Equipment & Products 60 11% Software 47 -2%

Consumer Discretionary 45 -2% Hotels, Restaurants & Leisure 58 5% Computers & Peripherals 41 -1%

Utilities 40 -8% Auto Components 57 15%

Health Care 38 -4% Multiline Retail 56 2% Industry (GICL2) vs. Sector (GICL1) RSI Trend

Consumer Staples 37 -7% Distributors 54 0% Media & Entertainment 58 1% Diversified Consumer Services 52 1% Telecommunication Services 38 -12% Relative to S&P 500 RSI Trend Textiles, Apparel & Luxury 48 6%

S&P 500 High Beta 67 18% Automobiles 48 8% Industry (GICL3) vs. Sector (GICL1) RSI Trend

Russell 2000 Value 63 17% Internet & Catalog Retail 37 -7% Independent Power Producers 58 25%

Russell 1000 Value 60 3% Gas Utilities 56 3%

S&P High Yield Dividend 55 2% Industry (GICL3) vs. Sector (GICL1) RSI Trend Multi-Utilities 52 -3%

Russell 2000 Growth 50 11% Personal Products 65 16% Electric Utilities 44 1% Russell 1000 Growth 42 -1% Tobacco 64 7% Water Utilities 44 0%

S&P 500 Low Volatility 37 -6% Food Products 55 1%

Beverages 49 0%

Industry (GICL3) vs. Sector (GICL1) RSI Trend Food & Staples Retailing 46 0% As of 02-Apr-21

Oil, Gas, & Consumable Fuels 57 0% Household Products 36 -6%

Energy Equipment & Services 42 4%

S&P 1500 Technology S&P 1500 REITs

S&P 1500 Communication Services

S&P 1500 Utilities S&P 1500 Health Care S&P 1500 Materials

S&P 1500 Industrials

S&P 1500 Consumer Discretionary

S&P 1500 Financials Key Market Indexes

Broad Market Equity Averages

S&P 500 Sectors

Styles

Source: Oppenheimer & Co. & Bloomberg. S&P 1500 Consumer Staples

S&P 1500 Energy

20

(21)

Stock prices of companies/ETFs mentioned in this report (as of April 1, 2021)

Ticker

Primary

Exchange Last Price Ticker

Primary

Exchange Last Price Ticker Primary Exchange Last Price

HES New York 72.8 PBR New York 8.3 ARKK NYSE Arca 123.7

HAL New York 21.6 COG New York 18.8 AWK New York 151.3

LNG NYSEAmerican 71.4 NOV New York 13.9 BAX New York 84.1

SCCO New York 68.2 NEM New York 60.9 CEO #N/A Field Not Applicable121.8

FCX New York 33.6 IFF New York 138.7 CSCO NASDAQ GS 51.7

UNP New York 220.6 MMM New York 191.3 DLTR NASDAQ GS 115.0

UBER New York 56.6 ROP New York 406.4 IQV New York 195.6

CMI New York 256.8 CSGP NASDAQ GS 847.6 IRM New York 36.8

ROK New York 262.4 VRSK NASDAQ GS 179.9 IWD NYSE Arca 152.0

URI New York 327.9 ROL New York 34.8 LMT New York 370.1

AMZN NASDAQ GS 3133.3 QSR New York 64.9 MAS New York 60.1

TSLA NASDAQ GS 682.2 DPZ New York 371.0 MCD New York 224.4

HLT New York 121.2 UAA New York 22.0 NFLX NASDAQ GS 532.4

PTON NASDAQ GS 115.6 LEG New York 45.9 NOC New York 323.7

DHI New York 89.9 HRB New York 21.8 OKTA NASDAQ GS 230.0

COST NASDAQ GS 355.4 KO New York 52.6 PRU New York 91.5

EL New York 292.5 UL New York 55.7 QQQ NASDAQ GM 324.2

KHC NASDAQ GS 39.7 K New York 62.8 SJM New York 124.1

MNST NASDAQ GS 91.9 CPB New York 49.2 SPHB NYSE Arca 70.2

UNH New York 370.1 NVS New York 86.1 SPLV NYSE Arca 58.1

ISRG NASDAQ GS 756.6 MRK New York 77.2 WMB New York 23.6

CI New York 241.3 SNY NASDAQ GS 49.3 XRAY NASDAQ GS 62.7

EW New York 84.3 GSK New York 35.8

ALGN NASDAQ GS 551.6 CERN NASDAQ GS 72.4

ABMD NASDAQ GS 321.1 HSIC NASDAQ GS 67.8

JPM New York 152.4 LFC New York 10.4

MS New York 78.0 MCO New York 305.7

BX New York 75.2 STT New York 84.4

KKR New York 49.8 NTRS NASDAQ GS 105.2

MSCI New York 437.3 MKTX NASDAQ GS 515.7

SIVB NASDAQ GS 479.1 UNM New York 27.8

PLD New York 107.0 DLR New York 141.2

CBRE New York 79.4 O New York 64.2

EXR New York 134.0 ARE New York 167.2

AAPL NASDAQ GS 123.4 INTC NASDAQ GS 63.8

MSFT NASDAQ GS 241.4 SAP New York 125.6

NVDA NASDAQ GS 547.2 IBM New York 132.7

AVGO NASDAQ GS 471.6 FIS New York 142.4

SQ New York 233.0 VMW New York 151.2

AMD NASDAQ GS 80.3 VRSN NASDAQ GS 202.7

LRCX NASDAQ GS 624.5 AKAM NASDAQ GS 102.8

SWKS NASDAQ GS 184.9 NLOK NASDAQ GS 21.6

ENPH NASDAQ GM 169.0 JNPR New York 25.4

GOOG NASDAQ GS 2113.5 VZ New York 57.8

TCEHY OTC US 84.3 T New York 30.1

TMUS NASDAQ GS 126.6 AMX New York 13.6

TTWO NASDAQ GS 178.7 BCE New York 45.1

NEE New York 76.1 D New York 75.3

BIP New York 54.1 ED New York 74.1

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Disclosure Appendix

Important Disclosure Footnotes for Companies Mentioned in this Report that Are

Covered by Oppenheimer & Co. Inc:

Stock Prices as of April 3, 2021

Apple Inc. (AAPL - NASDAQ, $123.00, OUTPERFORM)

Akamai Technologies (AKAM - NASDAQ, $102.83, OUTPERFORM)

Advanced Micro Devices (AMD - NYSE, $81.09, PERFORM)

Amazon.Com, Inc. (AMZN - NASDAQ, $3,161.00, OUTPERFORM)

Broadcom Ltd. (AVGO - NYSE, $475.95, OUTPERFORM)

Baxter International Inc. (BAX - NYSE, $84.32, OUTPERFORM)

The Blackstone Group (BX - NYSE, $75.19, PERFORM)

CIGNA Corp. (CI - NYSE, $241.83, OUTPERFORM)

Cummins Inc. (CMI - NYSE, $257.72, PERFORM)

Costco Wholesale Corp. (COST - NASDAQ, $354.94, OUTPERFORM)

Cisco Systems (CSCO - NASDAQ, $51.98, OUTPERFORM)

Dollar Tree, Inc. (DLTR - NASDAQ, $115.93, PERFORM)

Domino's Pizza, Inc. (DPZ - NYSE, $373.38, OUTPERFORM)

Estée Lauder (EL - NYSE, $292.33, OUTPERFORM)

Enphase Energy, Inc. (ENPH - NASDAQ, $162.69, OUTPERFORM)

Edwards LifeSciences (EW - NASDAQ, $83.84, OUTPERFORM)

Fidelity Nat'l Information Services (FIS - NYSE, $144.05, OUTPERFORM)

Alphabet Inc. (GOOG - NASDAQ, $2,137.75, OUTPERFORM)

H&R Block, Inc. (HRB - NYSE, $22.29, PERFORM)

Intel Corp. (INTC - NASDAQ, $64.55, PERFORM)

Intuitive Surgical (ISRG - NASDAQ, $747.60, UNDERPERFORM)

JPMorgan Chase & Co. (JPM - NYSE, $153.71, PERFORM)

KKR & Co. (KKR - NYSE, $50.35, OUTPERFORM)

McDonald's Corporation (MCD - NYSE, $225.21, OUTPERFORM)

Moody's Corporation (MCO - NYSE, $306.31, OUTPERFORM)

Morgan Stanley (MS - NYSE, $78.22, OUTPERFORM)

MSCI Inc. (MSCI - NYSE, $428.55, OUTPERFORM)

Microsoft Corporation (MSFT - NASDAQ, $242.35, OUTPERFORM)

Netflix, Inc. (NFLX - NASDAQ, $539.42, OUTPERFORM)

NVIDIA Corp. (NVDA - NASDAQ, $552.47, OUTPERFORM)

Realty Income Corp. (O - NYSE, $65.11, OUTPERFORM)

Okta, Inc. (OKTA - NASDAQ, $229.70, OUTPERFORM)

Peloton Interactive (PTON - NASDAQ, $112.09, OUTPERFORM)

Restaurant Brands International (QSR - NYSE, $65.55, PERFORM)

Rockwell Automation (ROK - NYSE, $263.44, OUTPERFORM)

Roper Technologies, Inc. (ROP - NYSE, $410.35, OUTPERFORM)

SAP SE (SAP - NYSE, $125.75, OUTPERFORM)

SVB Financial Group (SIVB - NASDAQ, $483.33, PERFORM)

Square Inc. (SQ - NYSE, $229.51, OUTPERFORM)

Skyworks Solutions, Inc. (SWKS - NASDAQ, $187.70, PERFORM)

AT&T, Inc. (T - NYSE, $30.47, PERFORM)

Tencent Holdings Ltd. (TCEHY - OTC PK, $83.84, OUTPERFORM)

T-Mobile (TMUS - NASDAQ, $127.65, OUTPERFORM)

LendingTree, Inc. (TREE - NASDAQ, $220.51, OUTPERFORM)

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Tesla, Inc. (TSLA - NASDAQ, $661.75, OUTPERFORM)

Take-Two Interactive Software (TTWO - NASDAQ, $180.15, OUTPERFORM)

Under Armour, Inc. (UAA - NYSE, $21.97, OUTPERFORM)

Uber Technologies, Inc. (UBER - NYSE, $57.60, OUTPERFORM)

UnitedHealth Group, Inc. (UNH - NYSE, $367.07, OUTPERFORM)

United Rentals, Inc. (URI - NYSE, $331.71, PERFORM)

VMware, Inc. (VMW - NYSE, $152.40, OUTPERFORM)

Verizon (VZ - NYSE, $58.30, PERFORM)

Oppenheimer & Co. Inc. 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.

The published date of the recommendations contained in this report can be found by accessing disclosures

(

https://opco2.bluematrix.com/sellside/MAR.action

).

This report was produced at April 1, 2021 11:42 EDT and disseminated at April 3, 2021 07:00 EDT.

Analyst Certification - The author certifies that this investment strategy report accurately states his/her

personal views about the subject securities, which are reflected in the substance of this investment report. The

author certifies that no part of his/her compensation was, is, or will be directly or indirectly related to the specific

recommendations or views contained in this investment strategy report.

This technical research report is provided by Oppenheimer & Co. Inc. ("OPCO"). Technical analysis is the study of price and volume and the interpretation of trading patterns associated with such studies in an attempt to project future price movements. Technical analysis does not consider the fundamentals of the underlying corporate issuer and may offer an investment view that may appear inconsistent with other research generated by OPCO. This report does not constitute research regarding fundamental financial information. The investments discussed in this report may not be suitable for all investors.

The overview in this report is provided for informational purposes and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security or investment advisory services. The report is not intended to provide personal investment advice. Investors should use the analysis provided by this report as one input into formulating an investment opinion and should consult with their Financial Advisor. Additional inputs should include, but are not limited to, the review of other research reports generated by OPCO, and looking at alternate analyses of the underlying corporate issuer. With respect to any specific company discussed herein, allow this report to serve as both an initiation and termination of coverage. Given the nature of technical research, such company may or may not appear in future reports for a variety of technical reasons.

Securities and other financial instruments discussed in this report or recommended or sold by OPCO are not insured by the Federal Deposit Insurance Corporation and are not deposits or obligations of any insured depository institution. Investments involve numerous risks including market risk, counterparty default risk and liquidity risk. Securities and other financial investments at times may be difficult to value or sell. The value of financial instruments may fluctuate, and investors may lose their entire principal investment.

Potential Conflicts of Interest:

Technical or strategic analysts employed by OPCO are compensated from revenues generated by the firm. OPCO generally prohibits any analyst and any member of his or her household from executing trades in the securities of a company that such analyst covers. Additionally, OPCO generally prohibits any analyst from serving as an officer, director or advisory board member of a company that such analyst covers. In addition to 1% (or more) ownership positions in covered companies that are required to be specifically disclosed in this report, OPCO may have a long positon of less than 1% or a short position or deals as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon and makes a market in the securities discussed herein. Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

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Company Specific Disclosures

LVT-AU, MDXH.BB, SANION-SE, STLC.CN, TCEHY: This research report is intended for use only by

institutions to which the subject security or securities may be sold pursuant to an exemption from state securities

registration in the state in which the institution is located.

The Oppenheimer & Co. Inc. analyst/associate(s) who covers this company also has a long position in BX,

KKR, MS and OKTA.

In the past 12 months Oppenheimer & Co. Inc. has provided investment banking services for ENPH, KKR,

PBR, PTON and TREE.

In the past 12 months Oppenheimer & Co. Inc. has managed or co-managed a public offering of securities

for ENPH and KKR.

In the past 12 months Oppenheimer & Co. Inc. has received compensation for investment banking services

from ENPH, KKR, PBR, PTON and TREE.

Oppenheimer & Co. Inc. expects to receive or intends to seek compensation for investment banking services

in the next 3 months from ENPH, PTON and URI.

An officer, director or employee of Oppenheimer & Co. Inc. or one of its affiliates is an officer or director of

this company: LEG.

Additional Information Available

Company-Specific Disclosures: Important disclosures, including price charts, are available for compendium

reports and all Oppenheimer & Co. Inc.-covered companies by logging on to https://www.oppenheimer.com/

client-login.aspx or writing to Oppenheimer & Co. Inc., 85 Broad Street, New York, NY 10004, Attention: Equity

Research Department, Business Manager.

Other Disclosures

This report is issued and approved by OPCO, Oppenheimer Europe Ltd. and Oppenheimer Investments Asia Limited. This report may be further distributed by OPCO for informational purposes only, to its institutional and retail investor clients. OPCO transacts business on all principal Exchanges and is a member of SIPC. This report does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. The securities mentioned in this report may not be suitable for all types of investors. This report does not take into account the investment objectives, financial situation or specific needs of any particular client of OPCO or its affiliates. Recipients should consider this report as only a single factor in making an investment decision and should not rely solely on investment recommendations contained herein, if any, as a substitution for the exercise of independent judgment of the merits and risks of investments. The analyst writing the report is not a person or company with actual, implied or apparent authority to act on behalf of any issuer mentioned in the report. Before making an investment decision with respect to any security recommended in this report, the recipient should consider whether such recommendation is appropriate given the recipient's particular investment needs, objectives and financial circumstances. We recommend that investors independently evaluate particular investments and strategies, and encourage investors to seek the advice of a financial advisor. OPCO will not treat non-client recipients as its clients solely by virtue of their receiving this report. Past performance is not a guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance of any security mentioned in this report. The price of the securities mentioned in this report and the income they produce may fluctuate and/or be adversely affected by exchange rates, and investors may realize losses on investments in such securities, including the loss of investment principal. OPCO accepts no liability for any loss arising from the use of information contained in this report. All information, opinions and statistical data contained in this report were obtained or derived from public sources believed to be reliable, but OPCO does not represent that any such information, opinion or statistical data is accurate or complete (with the exception of information contained in the Disclosure Appendix section of this report provided by OPCO or individual research analysts), and they should not be relied upon as such. All 24

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estimates, opinions and recommendations expressed herein constitute judgments as of the date of this report and are subject to change without notice. Nothing in this report constitutes legal, accounting or tax advice. Since the levels and bases of taxation can change, any reference in this report to the impact of taxation should not be construed as offering tax advice on the tax consequences of investments. As with any investment having potential tax implications, clients should consult with their own independent tax adviser. This report may provide addresses of, or contain hyperlinks to, Internet web sites. OPCO has not reviewed the linked Internet web site of any third party and takes no responsibility for the contents thereof. Each such address or hyperlink is provided solely for the recipient's convenience and information, and the content of linked third party web sites is not in any way incorporated into this document. Recipients who choose to access such third-party web sites or follow such hyperlinks do so at their own risk.

The S & P 500 Index is an unmanaged value-weighted index of 500 common stocks that is generally considered representative of the U.S. stock market. The S & P 500 index figures do not reflect any fees, expenses or taxes. Indices are unmanaged, hypothetical portfolios of securities that are often used as a benchmark in evaluating the relative performance of a particular investment. An index should only be compared with a mandate that has a similar investment objective. An index is not available for direct investment, and does not reflect any of the costs associated with buying and selling individual securities or management fees. The Volatility Index (VIX) shows the market's expectations of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. The VIX is a widely used measure of market risk.

This research report may also be distributed in the UK and elsewhere throughout Europe, as third party research by Oppenheimer Europe Ltd, which is authorized and regulated by the Financial Conduct Authority (FCA). This research is for information purposes only and is not to be construed as a solicitation or an offer to purchase or sell investments or related financial instruments. This research is for distribution only to persons who are eligible counterparties or professional clients. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. In particular, this material is not for distribution to, and should not be relied upon by, retail clients, as defined under the rules of the FCA. Neither the FCA’s protection rules nor compensation scheme may be applied.

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