Aether Analytics Technical Conspectus May 29, 2014

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    ther AnalyticsWeekly Technical Conspectus publish date : 5/29/2014

    Author : Alex Bernal, CMT

    [email protected]

    805.252.7161

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    DISCLAIMER

    The information in this report is based upon public sources Aether Analytics LLC (we or us ) believes reliable, but no representation is made byinformation is accurate or complete. The views expressed above represent our personal and subject view as of the date of this newsletter, and wto advise you of any change in the reported information or in opinions expressed herein.

    This report was prepared and issued by us for distribution to sophisticated investors, and does not constitute investment, legal or tax advice, indiviotherwise. Investments involve substantial risk, and the investments referred to herein may not be suitable for each investor. Investors must make tdecisions in consultation with their professional advisors in light or their specific circumstances. The value of investments may fluctuate, and investdenominated in foreign currencies may fluctuate in value as result of exposure to exchange rate movements. Information about past performanis not necessarily a guide to, indicator of, or assurance of, future performance. This report is not an offer to buy or sell any security.

    To the maximum extent permitted by law, Aether Analytics LLC disclaims any and all liability in the event any information, commentary, analysis, and / or recommendations in the report prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

    The publisher shall act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, colleaparticipants in the global capital markets. You may use the information provided at your own risk.

    No representation is being made that the information will produce trading profits, or limit trading losses. In no event shall Aether Analytics LLC or itrepresentatives, affiliates or contributing authors be held liable for any special, incidental or consequential damages, whatsoever (including withtrading losses or any other losses incurred) arising from the use or inability to use the information contained herein.

    Report Details

    Charts : Only markets that have critical trade setups or existing trades will be included. Publishing schedule : Weekly, delivered Sunday evening If any instrument was not covered in this weeks letter but you would still like a technical synopsis Please feel free to skype me at alexbernal0 or

    alex@aetheranalytics. Com User Guide Download Link> http://aetheranalytics.com/images/AetherConspectusUserGuide.pdf

    http://aetheranalytics.com/images/AetherConspectusUserGuide.pdfhttp://aetheranalytics.com/images/AetherConspectusUserGuide.pdfhttp://aetheranalytics.com/images/AetherConspectusUserGuide.pdf
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    Table of Contents

    Section 1 : Quick Glance Table Summary

    Section 2 : Currencies Section 3 : Energy Complex Section 7 : Grains & Softs

    AUDCAD WTI CRUDE Corn

    AUDJPY Brent Crude Soybeans

    AUDNZD Natural Gas Soybean Oil

    AUDUSD Section 4 : Interest Rates Oats

    EURAUD 10 Year Treasury Note Wheat

    EURCAD 30 Year Treasury Bond Coffee

    EURGBP Ultra Bond Sugar

    EURJPY Section 5 : Indices Cotton

    EURNZD S&P 500 Cocoa

    EURTRY Nasdaq 100 Section 10 : Sample Portfolio Tracking

    EURUSD Russell 2000 Section 11 : Appendix

    GBPAUD DJIA

    GBPCAD VIX (VXX / VXZ)

    GBPJPY Nikkei

    GBPNZD Shanghai

    HKDJPY Heng Seng

    NZDJPY Jakarta

    NZDUSD Section 6 : Metals

    USDCAD Gold

    USDHKD Silver

    USDJPY Platinum

    Palladium

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    Symbol Current Trade or Setup *Symbol is bold if trade is at a critical level

    Time Frame Recommended Entry

    Price

    Current Stops Targets Quick Note

    AUDCAD Daily &

    Weekly

    Entry 1.01 Triggered 1/2 @ 1.01571/2 @ 1.0239 0.99 & 0.96 Trade is Live

    AUDJPY Daily Entry 95.00 Triggered 1/2 @ 95.62 (1) 93-92, (2) 89 -87 Trade is Live. 1/2 was stopped out at 95.89 5/14/2014

    AUDNZD No tradable Patterns

    AUDUSD Daily Entrys 0.935 & 0.93 0.9426 91 & 88 Trade is Live (Reentered on trendline break 0.93

    CADJPY

    EURAUD Weekly Entry 1.488 Triggered 1/2 @ 1.45, 1/2 @ 1.44 1.5948 minimum Trade is Live

    EURCAD H&S Top Confirmed (Trade suggested for aggressive traders, but we will not take)

    EURGBP Possible bat support on weekly 0.79. Low pattern rank Butterfly on Daily.

    EURJPY Daily Entry Triggered 140.00 1/2 @ 139.78, 1/2 @ 141.01 134 Trade is Live Triangle Breakout

    EURNZD Weekly Fractals

    EURTRY Possible Bullish Bat @ 2.75. No trade suggestions currently

    EURUSD Weekly Entry Triggered 1.367 1/2 @ 1.3984, 1/2 @ 1.404 1.24 Trade is Live

    GBPAUD Retest of Neckline Again

    GBPCAD Possible complex head and shoulders top pattern

    GBPJPY fractals

    GBPNZD Daily fractals

    HKDJPY Weekly Continuation Triangles

    NZDJPY Weekly Entry Triggered 0.86 1/2 @ 92.86, 1/2 @ 90.48 78 & 70 High ranking symmetry 5 wave Entry triggered 5/29/2014

    NZDUSD Daily Entry Triggered 0.85 1/2 @ 0.8664. 1/2 @ 0.8595 0.835 & 0.815 First Trade Fully stopped out @ 0.876, 2nd entry triggered 5/28/2014

    USDCAD Bearish 5-0

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    Symbol Current Trade or Setup *Symbol is bold if trade is at a critical level

    Time Frame Recommended Entry

    Price

    Current Stop Targets Quick Note

    USDJPY Weekly EW complete 5 wave cycle

    USDMXN Failed Bullish Gartley : ABC symmetry developing

    USDSGD Potential Bullish Bat, PRZ Not Reached Yet

    WTI CRUDE Double Bearish Gartleys at Triple Top

    BRENT CRUDE Weekly 113.07 L / 103.80 S 145 / 75 Very complex pattern on daily, no trade suggested. Large Scale symmetrical triangle on w

    Nat Gas No tradable patterns.

    RBOB Gasoline Large Scale Bat Pattern, Diamond Top forming

    Heating OIl No tradable patterns.

    10 YEAR NOTE Daily Entry Triggered 125,05 1/2 @ 125.58 1/2 @ 125.37 128 Trade is Live

    30 YEAR BOND Weekly Entry Triggered 135.16 1/2 @ 133.61, 1/2 @ 130.83 142.16 Trade is Live

    SP500 No tradable patterns.

    NASDAQ 100

    RUSSELL 2000 Daily Entry Triggered 1140 1/2 @1097 1/2 @ 1093 1201 & 1260 Possible Bullish Bat. 3/4 normal size trade recommended

    DJIA 1:1 ABC Rhombus

    VIX VXX VXZ No tradable patterns.

    NIKKEI No tradable patterns. Downside bias

    SHANG HAI INDEX Daily Sell stop entry 2185 1/2 @ 2174 1980 1/2 got stopped out at 2144 (5/29/2014)

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    Symbol Current Trade or Setup *Symbol is bold if trade is at a critical level

    Time Frame Recommended Entry

    Price

    Current Stop Targets Quick Note

    HENG SENG Weekly Gartley Possibility

    JAKARTA Weekly Sell stop entry 4799 1/2 @ 5251, 1/2 @ 5381 4000 ENTRY WAS NOT TRIGGERED YET.

    BOMBAY SENSEX Weekly Sell stop entry 22077 19000 Bearish crab & 5 wave complete EW impulse

    GOLD Weekly Buy stop entry 1400 1/2 @ 1196.3, 1/2 @ 1153 1650 Weekly Possible bullish reverse head and shoulders

    SILVER Daily Buy stop entry 20.00 1/2 @ 18.55 1/2 @ 18.19 22 & 24 Possible Bullish Bat, PRZ reached. Looking for a move through 20 to trigger buy stop to e

    Platinum Daily Entry Triggered 1466 All @ 1511 1432 & 1380 Bearish Butterfly

    Palladium Trade stopped out at 830.13& 844 5/26

    Copper Daily Sell Stop Entry 3.13 3.28 & 3.24 Bearish Gartley

    Corn Possible Bullish Shark

    Soybeans Weekly Daily Sell stop entry 1440 1/2 @ 1604, 1/2 @ 164 1300 & 1050 Multi Harmonic Resistance on Weekly Pattern. Clear 5 wave impulse complete on daily

    Soybean Oil Gartley Levels shown

    Oats GarFly on Daily

    Wheat Daily Entry Triggered 722.25 1/2 @ 686 660 & 620 Trade is Live. Target 1 complete (covered short at 655.25)

    Coffee Low Pattern Rank Alt Bat

    Sugar No tradable patterns.

    Cotton No tradable patterns.

    Cocoa Weekly Entry Triggered 2866 1/2 @ 3172, 1/2 @ 3089 2600 & 2200 Trade is Live Bearish Crab Pattern

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    Currenc

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    AUDCAD - Daily

    Trade is Live. Sell stop to entry triggered 1.01, Stop levels are now revised to 1.0239 & 1.0157. Possible targets are 0.99 and 0.96. Analysis : Exterfly. Clear impulse wave up from January low. One could easily fit this wave structure as a possible wave 3 of 5 up secondary wave. As trade is developing

    see a bearish head and shoulders pattern at the top structure.

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    AUDCAD - Weekly

    On the weekly scale the pattern is even more convincing for a reversal here. We have really nice ABC retracement symmetry within the GWave C target possibility is 0.92 to 0.88. We suggest using the daily chart for execution.

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    AUDJPY - Trade was triggered on 4/15. 1/2 of the trade position was stopped out at 95.89 . The remaining stop is now at 96.54 . Clear corrective type wave stru

    X is very impulsive, which should contribute to a well behaved reversal here. Targets remain 93 and 89.

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    AUDUSD- 1/2 of position was reentered on a break of AC Trendline. Remaining position stops are now at 0.9426. Analysis : Price bounced off the A

    could be making a wave 2 up retracement that would suggest a strong down move if it breaks entry zone 2.

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    EURAUD - Trade is Live. 1/2 of position was stopped out at 1.47. 1/2 Buy stop entry triggered at 1.488. Pattern has now developed into a bullish bat

    gested a new buy stop to entry level at 1.50. Clearly a nice area to get long with the prevailing trend. Current stop for remaining 1/2 @ 1.448, Min

    target is 1.59. Risk is price breaks lower to complete a 5 wave impulse down. (see daily chart)

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    EURCADBearish Head and shoulders confirmed. Measured move target possibility 1.44. Right shoulder is losing support at 1 : 0.618 ABC. Aggressiv

    are short the H&S pattern should adjust stops down to minimize risk at this point (1.516 & 1.507).

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    EURGBP WeeklyPossible bat support at 0.79.

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    EURJPYTrade is Live, Sell stop entry triggered 140. Stops are all at 141.29. Measured move target 134. Analysis : Corrective Symmetrical triangle.

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    EURTRYWave 5 underway. Possible 5th wave measures a typical move very close to Bullish Bat support near 2.75

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    EURUSDTrade is Live. Sell stop entry triggered at 1.367. Stops at 1.3984 and 1.404. Potential downside targets could be 1.24 or new lows long term

    corrective EW pattern suggests that the current up move from the 2012 low could be at a critical reversal juncture.

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    EURUSDDaily Look

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    GBPAUDDaily Look Pushing for a wave 5 extension

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    GBPCADComplex head and shoulders pattern confirming. Measured move target 1.77

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    HKDJPYFractals

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    NZDJPY weeklyTRADE IS LIVELooking to att on a break below 2 4 wave trendline. Very high ranking pattern symmetry. Clearly a 5 wave EW im

    Crab in between wave 3 and 5. When we get a high ranking Ew pattern that also has a Harmonic relationship in the 35 wave termination pointconviction trade setup. We recommend 200% normal position size for aggressive traders. Sell stop to entry at 86.00, with stops at 92.98 & 93.99 respe

    expected targets are 78 and 70.

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    NZDJPYDaily Look. Double top about to confirm here for weekly pattern.

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    NZDUSD2nd Trade Entry Triggered unfortunately our initial trade got fully stopped out and reversed right after. If sell top to entry fills at 0.85 our 2

    70% of Broadening Pattern Measured move at 0.835 and then 0.8150 harmonic target. Stops will be place at 0.8664 and 0.8598 if filled.

    E

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    Energ

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    Brent WeeklyLarge scale symmetrical triangle.

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    Crude Oil WTI

    Double Gartley Triple Top.

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    RBOB GasolineLarge scale Bat Resistance, Possible Diamond Top

    I t t R t

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    Interest Rates

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    US Ten Year Treasury NoteTrade is Live. Buy stop entry triggered 125,05. 1/2 normal position size suggested. Current stops at 125.58 & 125.37 Meas

    is 128. Bullish bat in early April supported the Head and Shoulders bottom pattern. Possible resistance here with a Gartley Pattern. Stops must be res

    here.

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    US 30 Year Treasury BondTrade is Live. Buy stop for a long entry was triggered on 5/1/2014. Weekly Reverse Head and Shoulders bullish breakout.

    133.61& 130.83. Possible target measured move is 143.

    Indic

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    Indic

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    SP 500Daily Look.

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    SHANG HAI INDEXTrade is live, 1/2 stopped at 2144 5/28/2014 Entry triggered at 2185. Remaining stops at 2174.32

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    VXX VXZ VIXVolatility checkupSpreads between VIX and VXX & VXZ are seeing a nice push to there lower Vol band boundaries. Also term stru

    steep. We think this will spring board volatility slightly higher and has put in floor for the term structure in the near term. Small spread trade recommeShort VXZ.

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    Jakarta IndexUpdate : ENTRY Suggestion Not triggered yet. High ranking bearish Gartley pattern on the weekly scale. There is also nice symmetry

    C legs. This indicates there is some well behaved wave energy occurring in this market and should be high conviction trade. We recommend %150

    size than normal. Sell stop level revised higher to 4799. if triggered stops at 5381 & 5251 suggested.

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    Bombay Sensex IndexUpdate : PRZ was hit on a bearish Crab with a huge extension blow off top. There is also high ranking symmetry in respect to

    quence that we labeled starting at the Harmonic A point. On a long term basic we feel like this market is way over extended and the potential ret

    stantial. Sell stop to entry is suggested at 23802 with stops at 26178 & 25799. Minimum hold target would be 19000

    Metals

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    Metals

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    GoldWeekly Possible bullish head and shoulders reversal pattern off of the Major harmonic support level zone. If neck line is breached at 1400 a

    entry for long trade is recommended with stops at 1196 and 1153 respectively. Minimum measured move target would be 1650.

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    SilverNice Bullish Bat setting up here . Suggested Buy stop entry 20.00 with stops at 1/2 @ 18.55, 1/2 @ 18.19 with Targets at 22 & 24. Also clear bul

    pattern down here at the D zone.

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    PlatinumDaily Look. TRADE IS LIVE. Entry 1466 Entry Small scale bearish harmonic here. Pattern rank is moderate and we would like a trigger hedg

    and gold trades dont pan out. Stops at 1511 if triggered. Targets are 1430 & 1380.

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    CopperDaily Look Low structure ranking bearish Gartley. Small Trade Recommended. Sell stop Entry 3.13 I f filled stops at 3.28 & 3.24. Target 2.90

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    Grains & Softs

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    CornDaily Look

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    SoybeansWeekly. There is two separate harmonic patterns here both with resistance PRZ at the 1520 +/- region. Clear ABC up swing suggests a

    should form. Suggested entry zone is 1440 for a sell stop to entry short. With stops at 1646 & 1604. Targets are the recent lows at 1280 and below at 1

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    Soybeans OilDaily Look

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    Soybeans OilDaily Look

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    WheatTrade is Live. Target 1 Reached, Covered 1/2 position at 655.25. Stop for last piece is at 686

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    CocoaTrade is Live. Sell stop entry filled 2866. Stops are at 3215 & 3089. Bearish Crab Pattern on the weekly scale. Nice structure rating here. Th

    bly trade set up. We recommend using 150% larger size on this trade. Targets are 2600 and 2200.

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    CottonDaily Look

    Portfolio Track

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    Sample Portfolio TrackingIn the effort to help our subscribers learn how to effectively manage a forex, futures & Stock portfolio we have build a sample portfolio tracking log

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    base $100,000.00 NAV starting amount for 3 separate portfolios; $100,000 for futures , $100,000 for forex & $100,000 for stock trades. In efforts to sim

    not include commissions or broker fees since these will vary from subscriber to subscriber. This is in no way meant to be representative of actual ca

    aged but solely for educational purposes to show the subscriber how we are performing with our trade suggestions and risk management. We wi

    most accurate trading performance statistics possible and also keep our log simplified and transparent.

    -Forex : We will assume a minimum trade lot size of 10 Mini forex lots for all FX trades unless noted otherwise.

    (10,000 units of quote currency)

    Futures: We will assume a minimum trade lot size of 1 standard futures contract for all futures trades unless noted otherwise.

    Equities : %200 NAV of portfolio will be the base multiplier for share size. (rounded up to nearest whole)

    Subscribers are responsible for calculating there own optimal position sizes in accordance to there own individual risk tolera

    The information in this report is based upon public sources Aether Analytics LLC (we or us ) believes reliable, but no representation is made by mation is accurate or complete. The views expressed above represent our personal and subject view as of the date of this newsletter, and we do advise you of any change in the reported information or in opinions expressed herein.

    This report was prepared and issued by us for distribution to sophisticated investors, and does not constitute investment, legal or tax advice, individwise. Investments involve substantial risk, and the investments referred to herein may not be suitable for each investor. Investors must make their owcisions in consultation with their professional advisors in light or their specific circumstances. The value of investments may fluctuate, and investmennominated in foreign currencies may fluctuate in value as result of exposure to exchange rate movements. Information about past performance onot necessarily a guide to, indicator of, or assurance of, future performance. This report is not an offer to buy or sell any security.

    To the maximum extent permitted by law, Aether Analytics LLC disclaims any and all liability in the event any information, commentary, analysis, oand / or recommendations in the report prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

    The publisher shall act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, colleaparticipants in the global capital markets. You may use the information provided at your own risk.

    No representation is being made that the information will produce trading profits, or limit trading losses. In no event shall Aether Analytics LLC or itssentatives, affiliates or contributing authors be held liable for any special, incidental or consequential damages, whatsoever (including without limlosses or any other losses incurred) arising from the use or inability to use the information contained herein.

    Symbol Entry Date Long/Short Basis Price Current Stop #1 Current Stop #2 Exit Date Exit Price Poin

    Trade Log *Portfolio position sizing & P/L is based on the 2 sample portfolios tracked on th

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    EURNZD 4/11/2014 Long 1.605 1.58 1.570 5/6/2014 avg (1.575) - 0.0

    NZDUSD 4/11/2014 Short 0.8635 0.88 0.89 5/6/2014 avg (0.876) -0.1

    AUDJPY 4/15/2014 Short 95.00 95.72 5/14/2014 95.89 -0.89

    AUDUSD 4/17/2014 Short 0.935 (0.93) 0.910 0.88 5/3/2014 93.65 -0.30

    EURAUD 4/23/2014 Long 1.488 1.45 5/6/2014 104.7 -0.18

    GBPNZD 4/16/2014 Long 1.953 1.93 5/6, 5/15 Avg 1.936 -0.01

    WTI Crude 4/22/2014 Short 102.58 102.58 104 5/1, 5/14 1 @ 99.00

    1@ 102.58

    +3.5

    Shanghai 4/22/2014 Short 2185 2176 2146 5/29 1@2144 +41

    AUDCAD 4/29/2014 Short 1.01 1.015 1.0123

    30 Year 5/1/2014 Long 135.16 133.61 130.83

    EURJPY 5/9/2014 Short 140 139.78 141.01

    10 Year 5/9/2014 Long 125.05 125.58 125.37

    Palladium 5/7/2014 Short 800 844.28 832.54 5/21/2014 830.13/844 -30.

    * Shaded row denotes closed trade

    Symbol Entry Date Long/Short Basis Price Current Stop #1 Current Stop #2 Exit Date Exit Price Poin

    Trade Log *Portfolio position sizing & P/L is based on the 2 sample portfolios tracked on th

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    Wheat 5/12/2014 Short 722.25 686 5/23/2014 655.25 +67

    Cocoa 5/9/2014 Short 2866 2600 2200

    NZDJPY 5/29/2014 Short 0.86 92.86 90.48

    Russell 2000 5/28/2014 Long 1140 1097 1093

    Platinum 5/28/2014 Short 1466 1511

    Sample Portfolio Performance

    Performance Table * Portfolio Performance is calculated from month end

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    Feb Mar Apr May Jun July Aug Sep Oct Nov Jan

    2014 0.0%

    2015

    Risk Return Profile

    Performance YTD

    Performance since inception

    Max Draw Down

    Annual RoR

    Monthly Annual Compound

    Sharpe since inception

    Profit Factor

    Next UpdateJune 30th

    Appendix

    Methodology & Strategy

    Harmonic any component of a periodic oscillation whose frequency is and integral multiple of the fundamental frequency

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    Harmonicany component of a periodic oscillation whose frequency is and integral multiple of the fundamental frequency.

    The periods of neighboring waves in price action tend to be related by the small whole number. - J.M. Hurst

    Our aim with this report is to only focus on identifying the best possible trading patterns that are occurring in any given market. We utilize a variety

    find specific geometric ratio wave patterns that have favorable r isk to reward projected movements. Most of our trades are harmonic patterns an

    elliott waves in the tradition of H.M. Gartley, Larry Pesavento, Ross Beck, Scott Carney, R.N. Elliot, Ian Copsey & Bryce Gilmore. We blend all the be

    we have studied and thoroughly tested from each of the noted analysts and have also developed some proprietary tools of our own for trade qu

    and management. In terms of Elliot Wave theory we analyze waves in isolation for our primary trading time periods (daily & weekly). We dont be

    subjective nature of manually counting elliott waves but rather only focusing on 5 and 3 wave patterns that have perfect symmetry in regards to t

    essence we focus only on waves we recognize to have high probability fractal structures. Meaning only if specific geometric symmetry is identifie

    investigate for a trade entry point. When the market is creating wave fractals that are not amongst our high probability pattern repertoire no trad

    forecasted.

    Common Newsletter Nomenclature

    Pattern RankOur proprietary measurement system ranks patterns based on many variables within the internal structure as well as the macro tech

    (longer term waves & trend). We will highlight these patterns but if the rank is too low we will not recommend a trade.

    PRZPotential Reversal Zone, is also defined as our clearly defined level that a pattern must reach / test at least once in order to qualify as a harm

    Pattern NamesBAT, BUTTERFLY, GARTLEY, GARFLY, CYPHER, SHARK, ALTBAT, CRAB, DEEP CRABThese labels refer to specific harmonic 5 point f

    that appear in the markets. Please refer to the USER GUIDE here> http://aetheranalytics.com/images/AetherConspectusUserGuide.pdfor full spfor each pattern

    Detrended OscillatorOne of the only 2 indicators we will refer to in our charts is the Detrended Oscillator this is a proprietary calculation and is ve

    RVALUE indicator laid out by Mark W. Helweg & David C. Stendahl in there book Dynamic Trading Indicators. We have found this to be a great too

    over extending to the up and downside of a marketsnormal behavior. It is also very useful for finding divergence point between price and mom

    Appendix

    These standing wave patterns represent the lowest energy vibrational modes of the object or complex system. While there are countless way by

    can vibrate (each associated with a specific frequency), objects favor only a few specific modes or patterns of vibrating. The favored modes (pa

    http://aetheranalytics.com/images/AetherConspectusUserGuide.pdfhttp://aetheranalytics.com/images/AetherConspectusUserGuide.pdfhttp://aetheranalytics.com/images/AetherConspectusUserGuide.pdf
  • 8/12/2019 Aether Analytics Technical Conspectus May 29, 2014

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    ( p q y) j y p p g (p

    are those which result in the highest amplitude vibrations with the least input of energy. -AE

    Trade Management

    We primarily recommend trades that have a minimum of 3 to 1 risk reward ratio. Initial risk (stop loss) levels we often utilize are (ATR 14, 1.618), (ATR

    14, 2.5) (ATR 21, 3.0) from the entry price. Then a trailing stop from the current price is used with the ATR measures previously outlined. Entry techni

    somewhat subject process in our trading methodology. Users should always be aware that if a trade risk to reward ratio is less than 3:1 then the en

    or minimum targets need to be revised. We always show 2 potential target areas for each trade. Once Target 1 has been reached we recommeputting the trade stop loss at break even. Typically we take 1/2 the position off at Target 1 and trail stops until target 2 is reached or we get stoppe

    Position Sizing

    There are many different ways we suggest utilizing position sizing for your portfolio. For the purpose of this newsletter we will simply suggest our con

    the context of each trade. When we mention Normal position size this is size that you have determined to be most optimal position size for your s

    tolerance and trade management style. We will suggest 1/2 (50%) normal or 3/4 (75%) normal for trades we have sl ightly less confidence in & 6/4 (

    (200%) for trades we have more confidence in. This is only a suggestion and should only be considered as opinion or commentary from us for each

    ever recommend betting the farm or going all in in any trade because it surely leads to ruin. One of our favorite Portfolio position sizing formula

    recommend is the following:

    Percent Volatility Sizing -{ Position Size = (CE * %PE) / SV}- Where CE is the current account equity (NAV of portfolio, %PE is percentage of portfolirisk per trade (2%, 3% and 4% are recommended), SV is the stocks 14 day ATR

    Author Bio

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    Alex Bernal, CMT

    Alex Bernal is a Chartered Market Technician with many years of industry experience in the equity, commodity, currency, interest rate and derivat

    also holds a degree in Economics from the University of Southern California. Alex started his career at the Beverly Hills branch of Bear Stearns & Co

    management division. Then in 2007 he moved over to M&N Trading, LLC. where he joined the prop trading desk where he specialized in statistical

    such as global yield curve spreads and STIR futures. Here he was mentored by Veteran Trader, Anthony Lazzara, who was once the largest 5 year

    trader at the Chicago Board of Trade and executed as much as $100 billion in interest rate futures contracts annually. Alex founded Aether Analythe intent on providing premier technical analysis research to his clients with a focus only on the methods that have been proven to produce qua

    through he scientific research process. Aether Analytics deploys an approach that emphasizes on the objective not the subjective and aims to re

    repeating market fractal patterns that traders or portfolio manager can utilized to manage risk or speculate for profit.

    Alex has also been featured on many prominent news & financial blog networks such as CNBC, Bloomberg, CBOE TV, Fxstreet.com, Seeitmarket.c

    Benzinga.com, MTA.org, Yorba Media Radio & First Business News Network.

    Contact

    aetheranalytics.com

    [email protected]

    +1.805.252.7161

    Skype : alexbernal0