Æther Analytics Weekly Technical Conspectus publ ish date : 8/8/2014

Author : Alex Bernal, CMT

alex@aetheranalytics.com

805.252.7161

DISCLAIMER

The information in this report is based upon public sources Aether Analytics LLC (“we” or “us” ) believes reliable, but no representation is made by us that such

information is accurate or complete. The views expressed above represent our personal and subject view as of the date of this newsletter, and we do not undertake

to 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, individualized or

otherwise. Investments involve substantial risk, and the investments referred to herein may not be suitable for each investor. Investors must make their own investment

decisions in consultation with their professional advisors in light or their specific circumstances. The value of investments may fluctuate, and investments that are

denominated in foreign currencies may fluctuate in value as result of exposure to exchange rate movements. Information about past performance of an investment

is 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, options, advice

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, colleagues and other

participants 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 its employees,

representatives, affiliates or contributing authors be held liable for any special, incidental or consequential damages, whatsoever (including without limitation,

trading 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 email

alex@aetheranalytics. Com

User Guide Download Link —> http://aetheranalytics.com/images/AetherConspectusUserGuide.pdf

Table of Contents

Section 1 : Quick Glance Table Summary

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

No Longer Offered WTI CRUDE Corn

In Free Version Brent Crude Soybeans

Natural Gas Soybean Oil

Section 4 : Interest Rates Oats

10 Year Treasury Note Wheat

30 Year Treasury Bond Coffee

Ultra Bond Sugar

Section 5 : Indices Cotton

S&P 500 Cocoa

Nasdaq 100 Section 10 : Sample Portfolio Tracking

Russell 2000 Section 11 : Appendix

DJIA

VIX (VXX / VXZ)

Nikkei

Shanghai

Heng Seng

Jakarta

Section 6 : Metals

Gold

Silver

Platinum

Palladium

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 Successful Bearish Harmonic—Weekly Scale

AUDJPY Daily

AUDNZD Bullish Cypher

AUDUSD Daily Bearish Bat

CADJPY Low pattern Rank Bearish Butterfly / Crab. Confirmed Reversal

EURAUD Daily Buy Stop Entry 1.466 1.4260 & 1.4152 1.52 & 1.56 Bullish Reversal imminent

EURCAD Daily Entry Triggered 1.4538 & 1.4449 1.52 Trade Is Live 8/9/2014

EURGBP Daily Weekly Bullish Bat—small trade suggested

EURJPY Daily Entry Triggered 140.00 137.42 134 Trade is Live Triangle Breakout (covered 1/2 @ 137.60)

EURNZD Weekly Entry Triggered 1.58 1.5244 Trade is Live 8/1/2014

EURTRY Possible Bullish Bat @ 2.75. No trade suggestions currently

EURUSD Weekly Entry Triggered 1.367 1/2 @ 1.3671 @ 1.3932 1.24 Trade is Live

GBPAUD

GBPCAD Possible complex head and shoulders top pattern

GBPJPY Low Ranking Bearish Butterfly

GBPNZD Low Rank Bearish Gartely

HKDJPY Weekly Continuation Triangles

NZDJPY Weekly Entry Triggered 0.86 1/2 @ 90 1/2 @ 92.31 78 & 70 High ranking symmetry 5 wave Entry triggered 5/29/2014

NZDUSD Daily Bearish Butterfly

USDCAD Daily Entry Triggered 1.07 1/2 @ 1.0819, 1/2 @ 1.077 1.11 Trade Is Live

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

USDMXN

USDSGD Daily Entry triggered 1.246 1.2452 & 1.2416 1.2750 Trade is live 8/1/2014

WTI CRUDE

BRENT CRUDE (stopped out 103.13) Aug 8

Nat Gas Extended Shark

RBOB Gasoline Daily Entry Triggered 2.99 2.8414 2.70, 2.30 Trade is Live (1/2 covred at 2.70)

Heating Oil No tradable patterns.

10 YEAR NOTE Daily Buy stop @ 127.00 Potential H&S Bottom

30 YEAR BOND Weekly Entry Triggered 135.16 1/2 @ 132.30, 1/2 @ 137.71 142.16 Trade is Live

SP500 Small Scale Wolfe Wave

NASDAQ 100 Daily Entry Triggered 3927 All @ 3927 3750 &3550 Trade is live 7/30/2014

RUSSELL 2000 Daily Buy stop @ 1135 1083.6 & 1069.9 1220 Bullish Cypher

DJIA Bullish Shark—No Trade Recommended

VIX VXX VXZ No tradable patterns.

NIKKEI Potential bearish Bat-Crab

SHANG HAI INDEX Daily Potential Bearish crab

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 Daily Sell stop entry 24176 25245 23000 & 21000 Bearish Butterfly

JAKARTA Weekly Entry Triggered 4848 5200 4000 Trade is Live

BOMBAY SENSEX

US Dollar Index Daily Entry Triggered 80.55 81.16 & 80.827 82 & 84 Trade is Live

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

SILVER Daily Trade is Live (1/2 stopped out at 20.75) (1/2 stopped at 20.375)

Platinum Daily Low rank bearish butterfly missed

Palladium Low rank bearish bat crab

Copper Daily Entry Triggered 3.16 3.30 & 3.26 2.93 Possible Bearish Gartley

Corn Weekly Shark Support

Soybeans Weekly Daily Entry Triggered 1440 1/2 @ 1134 1050 Trade is Live (7/11 1/2 profits taken at 1231.50)

Soybean Oil Near Wave 5 Symmetry Balance Point

Oats “Gar– Fly” on Daily

Wheat

Coffee Low Pattern Rank Alt Bat

Sugar No tradable patterns.

Cotton No tradable patterns.

Cocoa Trade is Live Bearish Crab Pattern (1/2 stopped at 3085) 1/2 stopped at 3200)

Energy

WTI Crude Weekly— we missed this trade

RBOB Gasoline— Three Drive to a Top & Bearish Gartley. Sell stops @ 2.997 Targets are 2.70 & 2.65.

Natural Gas— Extended Bullish Shark

Interest Rates

US 10 Year Treasury Note—Potential Head and Shoulders Bottom

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

US 30 Year Treasury Bond—Daily Trade is Live. Buy stop for a long entry was triggered on 5/1/2014. Weekly Reverse Head and Shoulders bullish breakout. Stops are at

133.61& 130.83. Possible target measured move is 143.

Indices

Nasdaq Futures— Trade is live. Entry Triggered 3927, stops @ 3979 & 3943. Targets 3750 & 3550

SP500 Futures—

Russell 2000 Futures— Bullish trade setup

Dow 30 Futures— Low Rank Bearish Butterfly now potential shark support

Nikkei—In between bearish bat / crab no trade suggested

Shanghai A Shares—In between bearish bat / crab no trade suggested

Hong Kong HSI — Bearish Butterfly—Sell stop entry recommended 24176 if filled stops at 25245 with targets 23000 & 21000

Hong Kong HSI — Bearish Butterfly—Sell stop entry recommended 24176 if filled stops at 25245 with targets 23000 & 21000

Jakarta Index—Update : Trade is Live. High ranking bearish Gartley pattern on the weekly scale. There is also nice symmetry inside the X and C legs. This indicates there is some well behaved

wave energy occurring in this market and should be high conviction trade. We recommend %150 bigger position size than normal. Stops at 5300 & 5136. Target is 4000

Metals

DXY US Dollar Index— Daily Trade is Live Bullish 5-0 Pattern tightened stops

Gold— Weekly Possible bullish head and shoulders reversal pattern off of the Major harmonic support level zone. If neck line is breached at 1400 a small buy stop to

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

Gold— Daily— possible bullish 5-0

Palladium—Weekly

Copper Daily— Bearish Gartley Weekly & Daily— Short Filled 3.16 suggested, if filled stops @ 3.30 with targets of 2.95 at a minimum. Possibly switching to weekly

timeframe if trade comes to fruition with high velocity.

Grains & Softs

Soybeans— Weekly/daily. Entry Triggered 1440— 7/11/2014 1/2 profits taked at 1231.50 .Stops at 1152 for remaining position, Targets 1050 still in play.

Soybeans Oil

Corn Weekly

Cocoa— Weekly

Portfolio Tracking

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

base $10,000,000.00 NAV starting balance and trades all pips, points and ticks gained or lost. In efforts to simplify this log we will 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 capital being managed but solely for educational pur-

poses to show the subscriber how we are performing with our trade suggestions and risk management. We will strive to keep the most accurate trading perfor-

mance 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 tolerances.

The information in this report is based upon public sources Aether Analytics LLC (“we” or “us” ) believes reliable, but no representation is made by us that such infor-

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 not undertake to

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, individualized or other-

wise. Investments involve substantial risk, and the investments referred to herein may not be suitable for each investor. Investors must make their own investment de-

cisions in consultation with their professional advisors in light or their specific circumstances. The value of investments may fluctuate, and investments that are de-

nominated in foreign currencies may fluctuate in value as result of exposure to exchange rate movements. Information about past performance of an investment is

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, options, advice

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, colleagues and other

participants 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 its employees, repre-

sentatives, affiliates or contributing authors be held liable for any special, incidental or consequential damages, whatsoever (including without limitation, trading

losses 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 Points or Pips P/L

EURNZD 4/11/2014 Long 1.605 1.58 1.570 5/6/2014 avg (1.575) - 0.03

NZDUSD 4/11/2014 Short 0.8635 0.88 0.89 5/6/2014 avg (0.876) -0.125

AUDJPY 4/15/2014 Short 95.00 95.72 5/14/2014 Avg (95.72) -0.72

AUDUSD 4/17/2014 Short 0.9325 0.910 0.88 5/3/2014 0.93875 -0.00625

EURAUD 4/23/2014 Long 1.488 1.45 5/6/2014 1.445 -0.043

GBPNZD 4/16/2014 Long 1.953 1.93 5/6, 5/15 Avg 1.936 -0.017

WTI Crude 4/22/2014 Short 102.58 102.58 104 5/1, 5/14 1/2 @ 99.00

1/2 @ 102.58

+3.58, +0.0

Shanghai 4/22/2014 Short 2185 2171 2146 5/29 1/2 @2144 +28.41

AUDCAD 4/29/2014 Short 1.01 1.015 1.0123 6/4/2014 Avg 1.0192 -0.0092

30 Year 5/1/2014 Long 135.16 132.30 137.71

EURJPY 5/9/2014 Short 140 137.42 7/30/2017 1/2 @ 137.60 +2.400

10 Year 5/9/2014 Long 125.05 125.58 125.37 6/4 1/2 @ 125.37 0.295 +

Palladium 5/7/2014 Short 800 844.28 832.54 5/21/2014 Avg 837.06 -30.13

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

* Shaded row denotes closed trade

Symbol Entry Date Long/Short Basis Price Current Stop #1 Current Stop #2 Exit Date Exit Price Points or Pips P/L

Wheat 5/12/2014 Short 722.25 568 5/23/2014

6/13/2014

655.25 (1/2)

585.75 (1/4)

548.75 (1/4)

+67.00

+ 136.50

+ 173.50

Cocoa 5/9/2014 Short 2866 6/4

7/30

1/2 @ 3074

1/2 @ 3200

-208

-344

NZDJPY 5/29/2014 Short 0.86 90 92.31

Russell 2000 5/28/2014 Long 1140 1/2 @ 1185

1/2 @ 1700

+45

+30

Platinum 5/28/2014 Short 1466 6/4

6/24

1/2 @ 1423

1/2 @ 1473

+43

-7

Copper 5/30/2014 Short 3.13 6/20

6/23

1/2 @ 3.10

1/2 @ 3.1511

+.03

-.0211

EURUSD 5/15/2014 Short 1.3665 1.3671 1.3932

WTI Crude 6/12/2014 Long 105.23 103.95 104.32 7/2 1/2 @ 104.48

1/2 @ 103.30

-0.75

-1.93

Brent Crude 6/12/2014 Long 113.07 103.13 103.13 -10.06

Soybeans 6/12/2014 Short 1440 1134 1/2 @ 1231.50 +208.50

Soybean Oil 6/13/2014 Long 39.50 39.49 38.80 6/30 1/2 @ 39.48

1/2 @ 38.86

-0.02

-0.64

Jakarta 6/24 Short 4848 5200

USDCAD 7/11 Long 1.07 1.0819 1.077

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

Symbol Entry Date Long/Short Basis Price Current Stop #1 Current Stop #2 Exit Date Exit Price Points or Pips P/L

RBOB 7/10/2014 Short 2.99 3.14 2.99 1/2 @ 1.270 1.72

Silver 6/19/2014 Long 20.00 20.75 7/15/2014 1/2 @ 20.33

1/2 @ 20.375

+0.33

+0.375

DXY 7/16/2014 Long 80.55 81.16 80.827

USDSGD 8/1/2014 Long 1.246 1.2452 1.2416

NQ 8/30/2014 Short 3927 3927

EURCAD 8/9/2014 Long 1.4688 1.4538 1.4449

Copper 8/8/2014 Short 3.16 3.30 3.26

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

Sample Portfolio Performance

Performance Table * Portfolio Performance is calculated only from closed trades

Feb Mar Apr May Jun July Aug Sep Oct Nov Dec YTD Jan

2014 0.0% - 6.20% 59.38% 3.132 54.18%

2015

Risk Return Profile

Starting NAV

10MM

Performance YTD

54.18%

Performance since inception 54.18%

Max Draw Down

21.70%

Monthly Annual Compound Return

12.73%

Sharpe since inception

0.4623

Profit Factor

2.500

Appendix

Methodology & Strategy

Harmonic— “any 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 of algorithms to

find specific geometric ratio wave patterns that have favorable risk to reward projected movements. Most of our trades are harmonic patterns and ideal symmetry

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 best nuances that

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

and management. In terms of Elliot Wave theory we analyze waves in isolation for our primary trading time periods (daily & weekly). We don’t believe in the

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

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

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

forecasted.

Common Newsletter Nomenclature

Pattern Rank—Our proprietary measurement system ranks patterns based on many variables within the internal structure as well as the macro technical environment

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

PRZ—Potential 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 harmonic pattern

Pattern Names—BAT, BUTTERFLY, GARTLEY, GARFLY, CYPHER, SHARK, ALT– BAT, CRAB, DEEP CRAB— These labels refer to specific harmonic 5 point fractal structures

that appear in the markets. Please refer to the USER GUIDE here —> http://aetheranalytics.com/images/AetherConspectusUserGuide.pdf or full specifics and details

for each pattern

Detrended Oscillator—One of the only 2 indicators we will refer to in our charts is the Detrended Oscillator this is a proprietary calculation and is very similar to

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 tool in analyzing the

over extending to the up and downside of a markets “normal” behavior. It is also very useful for finding divergence point between price and momentum.

Appendix

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

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

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 21, 1.272), (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 technique is the only

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 entry point, risk point

or minimum targets need to be revised. We always show 2 potential target areas for each trade. Once Target 1 has been reached we recommend at a minimum

putting 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 stopped out.

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 confidence rating in

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 specific risk

tolerance and trade management style. We will suggest 1/2 (50%) normal or 3/4 (75%) normal for trades we have slightly less confidence in & 6/4 (150%) or 8/4

(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 trade. We never

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 formulas that we

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 portfolio equity to

risk per trade (2%, 3% and 4% are recommended), SV is the stocks 14 day ATR

Author Bio

Alex Bernal, CMT

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

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. in the wealth

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 arbitrage in areas

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 treasuries floor

trader at the Chicago Board of Trade and executed as much as $100 billion in interest rate futures contracts annually. Alex founded Aether Analytics in 2009 with

the intent on providing premier technical analysis research to his clients with a focus only on the methods that have been proven to produce quantifiable edge

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

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.com,

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

Contact

aetheranalytics.com

alex@aetheranalytics.com

+1.805.252.7161

Skype : alexbernal0