aether analytics technical conspectus july 11, 2014

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Æther Analytics Weekly Technical Conspectus publish date : 7/3/2014 Author : Alex Bernal, CMT [email protected] 805.252.7161

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Weekly Technical Analysis Newsletter. We specialize in isolated symmetry wave patterns. This is for education purposes only. 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

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Page 1: Aether Analytics Technical Conspectus July 11, 2014

Æther Analytics Weekly Technical Conspectus publ ish date : 7/3/2014

Author : Alex Bernal, CMT

[email protected]

805.252.7161

Page 2: Aether Analytics Technical Conspectus July 11, 2014

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

Page 3: Aether Analytics Technical Conspectus July 11, 2014

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

Page 4: Aether Analytics Technical Conspectus July 11, 2014

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

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 1.4354 & 1.4253 1.52 & 1.56 Bullish Reversal imminent

EURCAD Measured Move attained. Potential Bullish Bat

EURGBP Daily Near bullish bat on weekly

EURJPY Daily Entry Triggered 140.00 140.00 134 Trade is Live Triangle Breakout

EURNZD Weekly Bullish Gartley

EURTRY Possible Bullish Bat @ 2.75. No trade suggestions currently

EURUSD Weekly Entry Triggered 1.367 1/2 @ 1.386 1/2 @ 1.413 1.24 Trade is Live

GBPAUD

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

NZDUSD Daily

USDCAD Daily Entry Triggered 1.07 1/2 @ 1.06, 1/2 @ 1.055 1.11 Trade Is Live

Page 5: Aether Analytics Technical Conspectus July 11, 2014

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 Buy Stop entry 1.246 Bullish Bat

WTI CRUDE 1/2 Stopped out @ 104.48, 1/2 stopped at 103.30

BRENT CRUDE Weekly Buy stop entry 113.07 All @ 103.13 145 / 75 Trade its Live Large Scale symmetrical triangle on weekly,

Nat Gas No tradable patterns.

RBOB Gasoline Daily Entry Triggered 2.99 3.32 & 3.17 2.70, 2.30 Trade is Live

Heating OIl No tradable patterns.

10 YEAR NOTE Potential H&S Bottom

30 YEAR BOND Weekly Entry Triggered 135.16 1/2 @ 133.44, 1/2 @ 130.90 142.16 Trade is Live

SP500 Small Scale Wolfe Wave

NASDAQ 100 Daily Sell Stop 38.20 Suggested 1/2 @ 40221/2 @ 3969 3600 Bearish Crab (Hedge Long Russell)

RUSSELL 2000 Trade is Live (1/2 sold at 1185 on 6/23) (1/2 sold at 1170 on 7/8 )

DJIA 1:1 ABC Rhombus

VIX VXX VXZ No tradable patterns.

NIKKEI No tradable patterns. Downside bias

SHANG HAI INDEX Daily

Page 6: Aether Analytics Technical Conspectus July 11, 2014

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

JAKARTA Weekly Entry Triggered 4848 5200 4000 Trade is Live

BOMBAY SENSEX

US Dollar Index Daily Buy stop entry 80.55 79.62 & 79.30 82 & 84

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

SILVER Daily Entry Triggered 20.00 1/2 @ 20.33 1/2 @ 20.75 22 & 24 Trade is Live

Platinum Daily

Palladium

Copper

Corn Weekly Shark Support

Soybeans Weekly Daily Entry Triggered 1440 1/2 @ 1310 1300 & 1050 Trade is Live (7/11 1/2 profits taken at 1231.50)

Soybean Oil

Oats “Gar– Fly” on Daily

Wheat Daily Entry Triggered 722.25 1/2 @ 568 660 & 620 Trade is Live. Target 2 complete (covered 1/2 short at 655.25) (covered 1/4 @ 585.75)

Coffee Low Pattern Rank Alt Bat

Sugar No tradable patterns.

Cotton No tradable patterns.

Cocoa Weekly Entry Triggered 2866 1/2 @ 3201 2600 & 2200 Trade is Live Bearish Crab Pattern (1/2 stopped at 3085)

Page 7: Aether Analytics Technical Conspectus July 11, 2014

Currencies

Page 8: Aether Analytics Technical Conspectus July 11, 2014

AUDCAD- Bearish butterfly—First attempt got stopped out. Target 1 completed.

Page 9: Aether Analytics Technical Conspectus July 11, 2014

AUDCAD– Weekly Bearish butterfly—First attempt got stopped out

Page 10: Aether Analytics Technical Conspectus July 11, 2014

AUDNZD - Bearish Butterfly Target 1 complete. Bullish cypher support at 1.065. No trade suggested.

Page 11: Aether Analytics Technical Conspectus July 11, 2014

AUDUSD - Low Pattern Rank Bearish Bat

Page 12: Aether Analytics Technical Conspectus July 11, 2014

CADJPY - Low Pattern Rank Bearish Butterfly / Crab

Page 13: Aether Analytics Technical Conspectus July 11, 2014

EURAUD - Weekly Look—We think this is following the Copsey 3 wave impulse model since wave 1 is clearly 3 waves up, and wave 3 is as well. We have measured

out the high probability zone where wave 4 could complete and reverse back up to new highs in a wave 5.

Page 14: Aether Analytics Technical Conspectus July 11, 2014

EURAUD - Daily Look— Current pattern is Three Drives low / Wolfe Wave. We have seen nice bullish price action here. Buy stop to entry recommended at 1.466. Tar-

get 1 is the Wolfe Wave EPA line at 1.52 and Target 2 is 1.56. Stops will be at 1.4253 if filled.

Page 15: Aether Analytics Technical Conspectus July 11, 2014

EURCAD— Almost at Head and Shoulders measured move target, Currently testing bullish bat support

Page 16: Aether Analytics Technical Conspectus July 11, 2014

EURGBP Weekly Look— Approaching Bat Support

Page 17: Aether Analytics Technical Conspectus July 11, 2014

EURJPY—Trade is Live, Sell stop entry triggered 140. Stops are all at 140.00. Measured move target 134. Analysis : Corrective Symmetrical triangle breakout.

Page 18: Aether Analytics Technical Conspectus July 11, 2014

EURNZD—Weekly Bullish Gartley—Strong downside momentum underway

Page 19: Aether Analytics Technical Conspectus July 11, 2014

EURTRY—Weekly Bullish Bat

Page 20: Aether Analytics Technical Conspectus July 11, 2014

EURUSD Weekly— Trade is Live. Sell stop entry triggered at 1.367. Stops at 1.387 and 1.414 Potential downside targets could be 1.24 or new lows long term.

Page 21: Aether Analytics Technical Conspectus July 11, 2014

EURUSD Weekly— Trade is Live. Sell stop entry triggered at 1.367. Stops at 1.3940and 1.4151 Potential downside targets could be 1.24 or new lows long term.

Page 22: Aether Analytics Technical Conspectus July 11, 2014

NZDJPY weekly— TRADE IS LIVE—Looking to at on a break below 2 –4 wave trendline. Very high ranking pattern symmetry. Clearly a 5 wave EW impulse with a “Bat-Crab” in be-

tween wave 3 and 5. When we get a high ranking Ew pattern that also has a Harmonic relationship in the 3—5 wave termination points it’s a very high conviction trade setup. We recommend 200%

normal position size for aggressive traders. Sell stop to entry at 86.00, with stops at 89.95 & 92.39 respectively. Minimum expected targets are 78 and 70.

Page 23: Aether Analytics Technical Conspectus July 11, 2014

USDCAD— Immediate Trade Alert— Stop loss buy entry 1.07, Stops at 1.06 & 1.055, with Targets at 1.11

Page 24: Aether Analytics Technical Conspectus July 11, 2014

USDSGD— Low Ranking Bat Pattern

Page 25: Aether Analytics Technical Conspectus July 11, 2014

Energy

Page 26: Aether Analytics Technical Conspectus July 11, 2014

Brent Weekly—Trade is Live Large scale symmetrical triangle.

Page 27: Aether Analytics Technical Conspectus July 11, 2014

RBOB Gasoline— Trade is Live—2.99 filled short, Stops at 3.32 and 3.17 with Targets at 2.70 & 2.30

Page 28: Aether Analytics Technical Conspectus July 11, 2014

RBOB Gasoline— Three Drive to a Top & Bearish Gartley. Sell stop entry recommended at 2.99 with stops at 3.15 & 3.10 if filled. Targets are 2.75 & 2.65.

Page 29: Aether Analytics Technical Conspectus July 11, 2014

Interest Rates

Page 30: Aether Analytics Technical Conspectus July 11, 2014

US 10 Year Treasury Note—Potential Head and Shoulders Bottom

Page 31: Aether Analytics Technical Conspectus July 11, 2014

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. Stops are

at 133.61& 130.83. Possible target measured move is 143.

Page 32: Aether Analytics Technical Conspectus July 11, 2014

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.

Page 33: Aether Analytics Technical Conspectus July 11, 2014

Indices

Page 34: Aether Analytics Technical Conspectus July 11, 2014

SP 500— Small Scale Wolfe Wave

Page 35: Aether Analytics Technical Conspectus July 11, 2014

Nasdaq Futures— Bearish Butterfly—Sell stop level 38.20, if filled stops at 4022 & 3969. target is 3600 minimum.

Page 36: Aether Analytics Technical Conspectus July 11, 2014

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

Page 37: Aether Analytics Technical Conspectus July 11, 2014

Metals

Page 38: Aether Analytics Technical Conspectus July 11, 2014

DXY US Dollar Index— Daily Bullish 5-0 Pattern (1/2 normal position size suggested) Buy stop entry suggested 80.55, if filled stops at 79.62 & 79.30 with targets at 82 &

84.

Page 39: Aether Analytics Technical Conspectus July 11, 2014

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.

Page 40: Aether Analytics Technical Conspectus July 11, 2014

Silver— Trade is Live Buy stop entry 20.00 with stops at 1/2 @ 20.75, 1/2 @ 20.33 with Targets at 22 & 24.

Page 41: Aether Analytics Technical Conspectus July 11, 2014

Silver Weekly— Trade is Live Bullish Bat Support, 24.00 Reverse Head and Shoulders reversal confirmation level

Page 42: Aether Analytics Technical Conspectus July 11, 2014

Grains & Softs

Page 43: Aether Analytics Technical Conspectus July 11, 2014

Soybeans— Weekly/daily. Entry Triggered 1440— 7/11/2014 1/2 profits taked at 1231.50 .Stops at 1310 for remaining position, Targets 1050 still in play.

Page 44: Aether Analytics Technical Conspectus July 11, 2014

Wheat— Trade is Live. Target 1 Reached, Covered 1/2 position at 655.25. Covered 1/4 at 585.25. Stop for last piece is at 599

Page 45: Aether Analytics Technical Conspectus July 11, 2014

Cocoa— Trade is Live. Sell stop entry filled 2866. 1/2 stopped out at 3075 Stops are at 3201. Bearish Crab Pattern on the weekly scale. Nice structure rating here. This

is a high probably trade set up. We recommend using 150% larger size on this trade. Targets are 2600 and 2200.

Page 46: Aether Analytics Technical Conspectus July 11, 2014

Portfolio Tracking

Page 47: Aether Analytics Technical Conspectus July 11, 2014

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 $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 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 man-

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

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 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.

Page 48: Aether Analytics Technical Conspectus July 11, 2014

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 @ 99.00

1@ 102.58

+3.58, +0.0

Shanghai 4/22/2014 Short 2185 2171 2146 5/29 1@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 135.16 133.61 130.83

EURJPY 5/9/2014 Short 140 140

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

Palladium 5/7/2014 Short 800 844.28 832.54 5/21/2014 830.13/844 -30.13 / - 44

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

* Shaded row denotes closed trade

Page 49: Aether Analytics Technical Conspectus July 11, 2014

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)

+67.00

+ 136.50

Cocoa 5/9/2014 Short 2866 3204 6/4 1/2 @ 3074 -208

NZDJPY 5/29/2014 Short 0.86 89.85 92.39

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 1.386 1.413

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

Soybeans 6/12/2014 Short 1440 1310 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 1.06 1.055

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

Page 50: Aether Analytics Technical Conspectus July 11, 2014

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 3.32 3.17

Silver 6/19/2014 Long 20.00 20.33 20.75

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

Page 51: Aether Analytics Technical Conspectus July 11, 2014

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% -4.259% 16.16% 0.0%

2015

Risk Return Profile

Starting NAV 10MM

Performance YTD 11.21%

Performance since inception 11.21%

Max Draw Down 19.76%

Annual RoR 85.16%

Monthly Annual Compound Return 5.268&

Sharpe since inception 0.3682

Profit Factor 1.385

Page 52: Aether Analytics Technical Conspectus July 11, 2014

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.

Page 53: Aether Analytics Technical Conspectus July 11, 2014

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

Page 54: Aether Analytics Technical Conspectus July 11, 2014

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

[email protected]

+1.805.252.7161

Skype : alexbernal0