Aether Analytics Technical Conspectus May 9, 2014

ther Analytics Weekly Technical Conspectus publ ish date : 5/9/2014

Author : Alex Bernal, CMT

[email protected]

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 Section 9 : Dow 30 Stocks Section 10 : Sample Portfolio Tracking

AUDCAD WTI CRUDE Corn AXP T Section 11 : Appendix

AUDJPY Brent Crude Soybeans BA TRV

AUDNZD Natural Gas Soybean Oil CAT UNH

AUDUSD Section 4 : Interest Rates Oats CSCO UTX

EURAUD 10 Year Treasury Note Wheat CVX V

EURCAD 30 Year Treasury Bond Coffee DD VZ

EURGBP Ultra Bond Sugar DIS WMT

EURJPY Section 5 : Indices Cotton GE XOM

EURNZD S&P 500 Cocoa GS

EURTRY Nasdaq 100 Section 8 : SDPR Sector ETFs HD

EURUSD Russell 2000 XLB IBM

GBPAUD DJIA XLE INTC

GBPCAD VIX (VXX / VXZ) XLF JNJ

GBPJPY Nikkei XLI JPM

GBPNZD Shanghai XLK KO

HKDJPY Heng Seng XLP MCD

NZDJPY Jakarta XLU MMM

NZDUSD Section 6 : Metals XLV MRK

USDCAD Gold XLY MSFT

USDHKD Silver NKE

USDJPY Platinum PFE

Palladium PG

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

Recommended Entry

Price

Current Stops Targets Quick Note Time Frame

AUDCAD Entry 1.01 Triggered 1/2 @ 1.035 1/2 @ 1.032 0.99 & 0.96 Trade is Live Daily &

Weekly

AUDJPY Entry 95.00 Triggered 1/2 @ 95.92 , 1/2 @ 96.60 (1) 93-92, (2) 89 -87 Trade is Live. Daily

AUDNZD No tradable Patterns

AUDUSD Entry 0.935 Triggered 1/2 @ 0.941 91 & 88 Trade is Live Daily

EURAUD Entry 1.488 Triggered 1/2 @ 1.47, 1/2 @ 1.45 1.5948 minimum Trade is Live Weekly

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

EURGBP Possible bat support on weekly 0.79

EURJPY Entry Triggered 140.00 1/2 @ 142.94, 1/2 @ 142.14 134 Trade is Live Triangle Breakout Daily

EURNZD stopped out @ 1.587

EURTRY Possible Bullish Bat @ 2.75. No trade suggestions currently

EURUSD Sell stop entry 1.367 1/2 @ 1.43, 1/2 @ 1.41 1.24 Approaching entry point Weekly

GBPAUD 5th wave underway

GBPCAD Possible complex head and shoulders top pattern

GBPJPY Possible bearish 1 : 0.618 rhombus

GBPNZD Entry Triggered 1.953 1/2 @ 1.93 2.002.03, LT 2.10 Trade is Live. Stopped out of 1/2 at 1.943 Daily

HKDJPY No tradable patterns. No bias

NZDJPY Sell stop entry 86.00 1/2 @ 92.98, 1/2 @ 93.99 78 & 70 High ranking symmetry 5 wave EW pattern with Bearish Harmonic within Wave 4 and 5. Great trade setup Weekly

NZDUSD Sell stop entry 0.85 0.864 1/2 @ 0.88. 1/2 @ 0.876 0.835 & 0.815 First Trade Fully stopped out @ 0.876, Waiting for Broadening Pattern to confirm re entry Daily

USDCAD Bearish 5-0

USDHKD No tradable patterns. Downside bias


Time Frame Recommended Entry

Price

Current Stop Targets Quick Note

USDJPY Weekly EW complete 5 wave cycle

USDMXN Failed Bullish Gartley

USDSGD Potential Bullish Bat, PRZ Not Reached Yet

USDTRY No tradable patterns.

WTI CRUDE Daily Entry Triggered 102.58 1/2 @ 102.58 94 Trade is Live. 1/2 of position taken off at target 1 99.00

BRENT CRUDE Very complex pattern on daily, no trade suggested. Large Scale symmetrical triangle on weekly

Nat Gas No tradable patterns.

10 YEAR NOTE Daily Entry Triggered 125,05 1/2 @ 123.95, 1/2 @ 123,52 128 Trade is Live

30 YEAR BOND Weekly Entry Triggered 135.16 131.28 142.16 Trade is Live

Ultra Bond Similar pattern to ZB

SP500 No tradable patterns.

NASDAQ 100 Gartley support 3433, Bearish H&S Pattern

RUSSELL 2000 Daily Buy stop entry 1140 1/2 @1065.10, 1/2 @ 1049.9 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 @ 2166, 1/2 @ 2156 1980 Trade is Live



Price


HENG SENG Weekly Gartley Possibility

JAKARTA Sell stop entry 4704 1/2 @ 4151, 1/2 @ 5209 4000 ENTRY WAS NOT TRIGGERED YET.

BOMBAY SENSEX Weekly Sell stop entry 22000 1/2 @ 24133, 1/2 @ 23639 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 entry

Platinum No tradable pattern

Palladium Daily Entry Triggered 800 1/2 @ 844.28 1/2 @ 832.54 770 & 720 Trade is Live

Corn Three drives to a high pattern

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 No tradable patterns.

Wheat Daily SELL On Open Monday! 1/2 @ 781.72, 1/2 @ 767.65 660 & 620 Trade is Live. Bearish Butterfly with complete 5 wave pattern

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


Recommended Entry

Price

Current Stop Targets Quick Note Time Frame

XLB No tradable patterns.

XLE No tradable patterns.

XLF No tradable patterns.

XLI No tradable patterns.

XLK No tradable patterns.

XLP 43.50 1/2 @ 46.44, 1/2 @ 45.75 39.50 Bearish Three Drives with Price and Time rhombus Weekly

XLU 41.75 1/2 @ 45.76, 1/2 @ 44.99 38 Bearish Butterfly and Bearish 1 : 0.786 Rhombus Weekly

XLV No tradable patterns.

XLY Gartley Support

AXP No tradable patterns.

BA No tradable patterns.

CAT Weekly Gartley Low Pattern Rank

CSCO Sell Stop short 22 25.29 & 24.55 20 & 17 ABC retracement wave B or 2 Weekly

CVX No tradable patterns.

DD No tradable patterns.

DIS No tradable patterns.

GE Fractals

GS No tradable patterns.

HD Fractals

IBM No tradable patterns



Price


INTC No tradable patterns.

JNJ Fractals

JPM, No tradable patterns.

KO Low structure rank. No trade suggested.

MCD No tradable patterns.

MMM Failed Gartley

MRK Daily Entry Triggered 57.99 1/2 @ 58.23, 1/2 @ 57.50 53 51 Trade is Live

MSFT No tradable patterns.

NKE Weekly Double Top

PFE No tradable patterns.

PG Diamond top

T Low pattern rank. Bearish Bat

TRV No tradable patterns.

UNH No tradable patterns.

UTX No tradable patterns.

V Bullish support lower

VZ No tradable patterns.

WMT Bearish Bat setting up

XOM Failed bearish gartley

Currencies

AUDCAD - Daily Trade is Live. Sell stop to entry triggered 1.01, Stop levels are at 1.035 & 1.028. Possible targets are .99 and .96. Analysis : Extended bearish Butterfly. Clear im-

pulse 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 we were glad to see a bearish

cup and handle pattern at the top structure.

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 Gartley pattern.

Wave C target possibility is 0.92 to 0.88. We suggest using the daily chart for execution.

AUDJPY - Trade was triggered on 4/15. Hard stops have shifted down and are now at 96.60 & 95.92. Clear corrective type wave structure from A to D. X is very impulsive, which

should contribute to a well behaved reversal here. Targets remain 93 and 89.

AUDUSD- 1/2 of position was stopped out at 0.9355. Remaining position stops are now at 0.941. We suggest waiting for a break below Entry Zone 2 at 0.9214 before

adding or re-entering this trade. Analysis : Price bounced off the A C trendline, we could be making a wave 2 up retracement that would suggest a strong down

move if it breaks entry zone 2.

EURAUD - Trade is Live. 1/2 of position was stopped out at 1.47. 1/2 Buy stop entry triggered at 1.488 still Very nice AB = CD wave setting up here at .618% of the pre-

vious impulse wave. Clearly a nice area to get long with the prevailing trend. Current stop for remaining 1/2 @ 1.45, Minimum expected target is 1.59. Risk is price

breaks lower to complete a 5 wave impulse down. (see daily chart)

EURAUD daily - Trade is Live. Possible wave 5 leg will take out our stops and push towards BAT support. If stopped out we will revisit entry levels due to higher time

frame bullish pattern.

EURCADBearish Head and shoulders confirmed. Measured move target possibility 1.44. Right shoulder is finding support at 1 : 0.618 ABC. Aggressive traders with

bearish EUR bias could short here with stops at 1.53 and 1.52.

EURGBP WeeklyPossible bat support at 0.79

EURJPYTrade is Live, Sell stop entry triggered 140. Stops are at 142.94 & 142.14. Measured move target 134. Analysis : Corrective Symmetrical triangle.

EURNZDTrade got stopped out at 1.587.

EURTRYWave 5 underway. Possible 5th wave measures a typical move very close to Bullish Bat support near 2.73

EURUSD Sell stops to entry waiting at 1.367. Stops at 1.424 and 1.415 would be used if filled. Potential downside targets could be 1.24 or new lows long term. Weekly

scale corrective EW pattern suggests that the current up move from the 2012 low could be at a critical reversal juncture. The Gartley PRZ of 1.401 has not been test-

ed yet but we think this pattern is of high enough rank to merit early short positions for aggressive traders.

GBPAUD Retest complete of the primary head and shoulders pattern neckline. No trade recommended due to low structure rating but suggested stops are shown

for those whom want to take the risk. (now 1.837 & 1.822). If we do see a reversal here then I have laid out possible wave 5 moves that would fit the pattern sym-

metry. 1.74 would be a typical wave 5 move. H&S measured move is 1.71.

GBPCAD Complex head and shoulders pattern confirming. Measured move target 1.77

GBPJPY bearish Rhombus confirmed . The Length of X to A : B to C is 1 : 0.618. Also it is hitting the double top resistance level from the March and April highs.. A pro-

spective wave C move target would be approximately 168 if the current move is assumed to be B in nature. We are not suggesting a trade setup here but for those

who like the idea prospective stops would be at 175.63 & 174.52. Cypher support at 169. and potential wave 3 measures 1.65 typical length.

GBPNZD Trade is Live. 1/2 of position stopped out at 1.943. Current Stop for remaining position 1.928. Measured move targets at minimum at 2.00 and we suggest

taking off all of the total position if this is reached since the target 2 is beyond what we see feasible in the next move.

NZDJPY weekly Very high ranking pattern symmetry. Clearly a 5 wave EW impulse with a Bat-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 points its 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 92.98 & 93.99 respectively. Minimum expected targets are 78 and 70.

NZDJPY Daily Look. Double top about to confirm here for weekly pattern.

NZDUSD Previous Trade Fully Stopped out at 0.876. unfortunately our initial trade got fully stopped out and reversed right after. But we are going to stay systematic

and wait for a re entry out of the current broadening pattern since we think the harmonic setup is still valid. If sell top to entry fills at 0.85 our 2 targets would be 70%

of Broadening Pattern Measured move at 0.835and then 0.8150 harmonic target. Stops will be place at 0.881 and 0.876 if filled.

USDCAD Nice turn from 2 weeks ago suggested bearish 5-0. Target still un reached.

USDJPY Weekly complete 5 wave EW cycle. Prospective ABC retracement measures.

USDSGD potential bullish Bat, PRZ not yet reached. I have measured out the typical wave 5 symmetry and its quite curious that it is very close to the bullish bat sup-

port on the larger term pattern setting up here.

Energy

WTI Crude Oil Trade is Live. 1/2 of the original trade position was taken off for profits at 99.00. Current stop for remaining 1/2 is at 102.58. Target 2 of 94.00 is next

place we will take profits if position is not stopped out before then.

Brent Weekly Large scale symmetrical triangle.

Interest Rates

US Ten Year Treasury Note Trade is Live. Buy stop entry triggered 125,05. 1/2 normal position size suggested. Current stops at 123.95 & 123.52. Measured move tar-

get is 128. Bullish bat in early April supported the Head and Shoulders bottom pattern.

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. Stops are at 132.

possible target measured move is 143.

US 30 Year Treasury BondDaily Look current up wave could find harmonic resistance at 138.04. we will move stops up tighter when this level is being tested.

Indices

S&P 500 Futures Daily Look. Very complex Triple Top / Diamond top here. But we wont rule out a ABC correction awaiting more upside. We have evidence that a

down cycle (seasonally sell in may and stat cycles) suggest a down move into June (Gartley support ) is most likely

NASDAQ 100 Daily Look, small scale Gartley support at 3433. But as the pattern is developing its clear that it is a Head and Shoulders top. The Neckline of this pat-

tern is a make or break level meaning if we test on the harmonic support and start to move higher a bullish move up through recent highs is expected. While if we

get a confirmed break down below neck line we suggest a small short trade, with sell stop to entry at 3400. If filled stops at right shoulder are suggested with a 3100

measured move target.

DJIA Could be setting up a head and shoulders top. We are currently forming the right shoulder. If we see a reversal down a sell stop to entry could be recom-

mended at 15920.

Russell 2000 Futures Despite other correlated markets showing signs of bearish top patterns TF is sitting right at bullish support . To hedge our bearish trades in YM /

ES we are suggesting a possible long trade here in TF if we get a bullish catalyst. Buy stop entry 1140, with stops at 1065 and 1049 if filled. Targets are 1201 @ 1260.

SHANG HAI INDEX Trade is live, Entry triggered at 2185. Stops are revised to 2166 for 1/2 and 2156 for 1/2.

Jakarta IndexUpdate : ENTRY Suggestion Not triggered yet. 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.

Bombay Sensex IndexUpdate : PRZ was hit on a bearish Bat Crab (1/2 way between). There is also high ranking symmetry in respect to the 5 wave sequence

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 retrace is quite substantial.

Sell stop to entry is suggested at 22000 with stops at 24133 & 23639. Minimum hold target would be 19000

Metals

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.

Silver Nice 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 bullish three drives

pattern down here at the D zone.

Palladium Trade is Live. Sell stop entry triggered 800. Stop are at 844 and 832.50 for 1/2 of the position for each. Bearish Deep Crab. With nice structure rating. This

complex three drives high suggests there is distribution up here at the PRZ. This could be a good spread trade with Gold's bullish set up. If Gold and Silver fail support

here it should drag this leader down.

Grains & Softs

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

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 1050.

Soybeans Oil Daily Look

Wheat Immediate Sell Signal In accordance to the newsletter we will go short at market first open of Wheat on Monday. Bearish butterfly reversal with 5 wave se-

quence preceding pattern. On fill stop loss orders will be placed at 781.75 for 1/2 position and 767.65 for 1/2 position. Minimum Target is 658.50.

CoffeeBearish ALT bat. Great trade. We did not enter due to pattern rank.

Cocoa Trade is Live. Sell stop entry filled 2866. Stops are at 3172 & 3089. Bearish Crab Pattern on the weekly scale. Nice structure rating here. This is a high proba-

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

SDPR Sector ETFS

XLP Consumer Staples Three drive to a high top pattern here (1.618 and 1.272 ratio between highs) Also in the last 2 swings a bearish rhombus has formed with nice

price and time symmetry. Sell stop to entry at 43.50 with stops at 46.44 & 47.45. Target at 39 or EPA Line

XLU Utilities Three drive to a high top pattern here with a Bearish Butterfly as well. Also in the last 2 swings a bearish rhombus has formed with nice price and time

symmetry. Sell stop to entry short is suggested at 41.75 with stops at 45.76 and 44.99. Targets of 38 & 35 to the downside.

Dow 30 Stocks

CSCOABC retracement of Wave 2 or B. Small entry suggested below 22. If filled stops at 25.29 & 24.55. Target 20 & 17.

INTCMeasures

KOFractals. Low structure rank. No trade suggested.

MCD Weeklyfractals

MMM dailyGarfly

MRK Trade is Live. Sell stop entry filled 58.00. Current Stops at 58.23 & 57.50. High pattern rank complete EW 5 wave up cycle. Targets at 50% and 61.8% 52, 51 lev-

els. Nice bearish butterfly to compliment the 3 to 5 wave reversal zone.

NKEDouble Top (last week no change)

XOM Potential Garfly

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 $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.

Symbol Entry Date Long/Short Basis Price *Size

(Mini lots or contracts)

Current Stop

#1

Current Stop

#2

Exit Date Exit Price Points or Pips P/L *$ P&L

EURNZD 4/11/2014 Long 1.605 10 1.58 1.570 5/6/2014 avg (1.575) - 0.03 $-3000

NZDUSD 4/11/2014 Short 0.8635 10 0.88 0.89 5/6/2014 avg (0.876) -0.125 $-1250

AUDJPY 4/15/2014 Short 95.00 10 95.92 96.60

AUDUSD 4/17/2014 Short 0.935 10 0.910 0.88

NZDUSD 4/15/2014 Short 0.863 10 0.88 0.87

EURAUD 4/23/2014 Long 1.488 10 1.47 1.45

GBPNZD 4/16/2014 Long 1.953 10 1.93 5/6/2012 (1/2@)1.943 $-500

WTI Crude 4/22/2014 Short 102.58 2 102.58 104 5/1, 1 @ 99.00 3.58, $3580

Shanghai 4/22/2014 Short 2185 *Index (100) 2156 2160

AUDCAD 4/29/2014 Short 1.01 10 1.035 1.028

30 Year 5/1/2014 Long 135.16 2 131.28

EURJPY 5/9/2014 Short 140 10 142.94 142.14

10 Year 5/9/2014 Long 125.05 2 123.95 123.52

Palladium 5/7/2014 Short 800 2 844.28 832.54

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 *Size

(Mini lots or contracts)

Current Stop

#1

Current Stop

#2

Exit Date Exit Price Points or Pips P/L *$ P&L

Wheat

Cocoa 5/9/2014 Short 2866 2 2600 2200

MRK 5/5/2014 Short 57.99 500 58.23 57.50

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 from month end only on closed trades

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

2014 0.0% 0.0%

2015

Risk Return Profile

Performance YTD

Performance since inception

Max Draw Down

Annual RoR

Monthly Annual Compound Return

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.

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 dont 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 RankOur 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.

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 harmonic pattern

Pattern NamesBAT, 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 OscillatorOne 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

[email protected]

+1.805.252.7161

Skype : alexbernal0

Aether Analytics Technical Conspectus May 9, 2014

Documents

currencies section

stocks section

reported information

table of contents section

grains softs section

energy complex section

value of investments

limit trading losses