Aether Analytics Technical Conspectus June 6, 2014

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    ther AnalyticsWeekly Technical Conspectus publish date : 6/6/2014

    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 re presentation is made by us thinformation 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 undertaketo 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, le gal or tax advice, individualized orotherwise. Investments involve substantial risk, and the investments referred to herein may not be suitable for each investor. Investors must make their own investmentdecisions in consultation with their professional advisors in light or their specific circumstances. The value of investments may fluctuate, and investments that aredenominated in foreign currencies may fluctuate in value as result of exposure to exchange rate movements. Information about past performance of an investmentis 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, adviceand / 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 otherparticipants 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 DetailsCharts : Only markets that have critical trade setups or existing trades will be included.Publishing schedule : Weekly, delivered Sunday eveningIf 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 emailalex@aetheranalytics. ComUser 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 EntryPrice

    Current Stops Targets Quick Note

    AUDCAD Daily &Weekly

    Entry 1.01 Triggered 1/2 @ 1.0235 0.99 & 0.96 Trade is Live (1/2 stopped out at (1.015) 6/4

    AUDJPY Daily Trade is Live. 1/2 was stopped out at 95.89 5/14/2014, 1/2 stopped out at 6/5 95.55

    AUDNZD Low Ranking Deep Crab

    AUDUSD Daily Entries 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 Daily Buy stop to entry 0.8160 0.8049 0.8273 & 0.836 Possible bat support on weekly 0.79. Low pattern rank Butterfly on Daily.

    EURJPY Daily Entry Triggered 140.00 140.93 134 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 @ 1.39.02 1/2 @ 1.4168 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 @ 92.63, 1/2 @ 90.29 78 & 70 High ranking symmetry 5 wave Entry triggered 5/29/2014

    NZDUSD Daily Entry Triggered 0.85 0.8611 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 EntryPrice

    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 Gartley 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 weekly

    Nat Gas No tradable patterns.

    RBOB Gasoline Large Scale Bat Pattern, Diamond Top forming

    Heating OIl No tradable patterns.

    10 YEAR NOTE Trade stopped out at 1.2537 for 1/2 and 125.025

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

    SP500 1 X 1 at 1963.75 6/6/2014

    NASDAQ 100

    RUSSELL 2000 Daily Entry Triggered 1140 1/2 @ 1123 1/2 @ 1106 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 @ 2171 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 EntryPrice

    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

    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 Daily Entry Triggered 1466 All @ 1489 1380 Bearish Butterfly 1/2 profits taken at 1423

    Palladium Trade stopped out at 830.13& 844 5/26

    Copper Daily Entry Triggered 3.13 3.17 & 3.13 2.95 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 Daily Buy Stop Entry 39.50 1/2 @ 37.42, 1/2 @ 37.42 44.00 Gartley Levels shown

    Oats Gar Fly on Daily

    Wheat Daily Entry Triggered 722.25 1/2 @ 656.50 660 & 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 @ 3213 2600 & 2200 Trade is Live Bearish Crab Pattern (1/2 stopped at 3085)

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    Currencie

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    AUDCAD - Daily Trade is Live. 1/2 position was stopped out at 1.015 on 6/4. Remaining stop revised to 1.0235. Possible targets are 0.99 and 0.96. Analysis : Extended bterfly. 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 we were glad tosee a bearish head and shoulders pattern at the top structure.

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    AUDJPY - Trade was triggered on 4/15. 1/2 of the trade position was stopped out at 95.89 Remaining was stopped out at 95.55.

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    AUDNZD - Bearish Deep Crab

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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 C trendline, wecould 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 Buy stop entry triggered at 1.488. Pattern has now developed into a bullish bat so we have suggested a new buy stop to entry level at1.50. Clearly a nice area to get long with the prevailing trend. Current stop for remaining 1/2 @ 1.45 and 1/2 @ 1.44, Minimum expected target is 1.59. Risk is pricebreaks lower to complete a 5 wave impulse down. (see daily chart)

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    EURCAD Bearish Head and shoulders confirmed. Measured move target possibility 1.44. Right shoulder is losing support at 1 : 0.618 ABC. Aggressive traders whom

    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 Daily Bullish deep crab with momentum divergence from the late may low and june. Looking for a buy stop entry at 0.8160. If filled stops will be placed at0.8049. With targets at 0.8273 & 0.836

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    EURJPY Trade is Live, Sell stop entry triggered 140. Stops are all at 140.93. Measured move target 134. Analysis : Corrective Symmetrical triangle.

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    GBPAUD Daily Look Pushing for a wave 5 extension

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    NZDJPY weekly TRADE IS LIVE Looking to att on a break below 2 4 wave trendline. Very high ranking pattern symmetry. Clearly a 5 wave EW impulse with

    Crab in between 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 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. Minimumexpected targets are 78 and 70.

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    NZDUSD 2nd Trade Entry Triggered If sell top to entry fills at 0.85 our 2 targets would be 70% of Broadening Pattern Measured move at 0.835 and then 0.8150 har-

    monic target. Stops will be place at 0.8612 if filled.

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    Energ

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    Brent Weekly Large scale symmetrical triangle.

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    Crude Oil WTI Double Gartley Triple Top.

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    RBOB Gasoline Large scale Bat Resistance, Possible Diamond Top

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    Interest Rates

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    US Ten Year Treasury Note

    Trade is Live. Buy stop entry triggered 125,05. 1/2 normal position size suggested. Current stops at 125.58 & 125.37 Measured move tais 128. Bullish bat in early April supported the Head and Shoulders bottom pattern. Possible resistance here with a Gartley Pattern. Stops must be respected strictlyhere.

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    Indice

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    SP 500 Daily Look.

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    Russell 2000 Futures Daily Look Bullish Bat confirming reversal here. Suggested buy stop 1140. Stops are at 1123 &1106 suggested. Possible targets 1200 & 1270.

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    Jakarta Index Update : ENTRY Suggestion Not triggered yet. High ranking bearish Gartley pattern on the weekly scale. There is also nice symmetry inside the X andC legs. This indicates there is some well behaved wave energy occurring in this market and should be high conviction trade. We recommend %150 bigger positionsize than normal. Sell stop level revised higher to 4799. if triggered stops at 5381 & 5251 suggested.

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

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    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 drivespattern down here at the D zone.

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    Platinum Daily Look . TRADE IS LIVE. Entry 1466 1/2 Profit were taken at target 1423 Entry Small scale bearish harmonic here. Pattern rank is moderate and we wolike a trigger hedge in case our silver and gold trades dont pan out. Stops at 1489 if triggered. Targets are 1430 & 1380.

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    Copper

    Daily Look Trade is Live Entry filled 3.13. stops are at 3.17 & 3.13. Target 1 is 2.95 and target 2 is 2.80

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    Grains & Softs

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    Corn Daily Look Low ranking shark no trade recommended

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    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 impulseshould 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.

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    Soybeans Oil Daily Look Buy stop entry suggested 39.50 with stops at 37.42 @ 36.87 if triggered. Target would be 43.50

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    Wheat

    Trade is Live. Target 1 Reached, Covered 1/2 position at 655.25. Stop for last piece is at 656.00

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    Cocoa Trade is Live. Sell stop entry filled 2866. 1/2 stopped out at 3075 Stops are at 3213. Bearish Crab Pattern on the weekly scale. Nice structure rating here. Tis a high probably trade set up. We recommend using 150% larger size on this trade. Targets are 2600 and 2200.

    Portfolio Trackin

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    Portfolio Trackin

    Sample Portfolio Tracking

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    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 abase $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 willnot 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 themost 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 re presentation is made by us thamation 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 toadvise 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, le gal 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 m ay 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 isnot 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, adviceand / 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 otherparticipants 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, tradinglosses or any other losses incurred) arising from the use or inability to use the information contained herein.

    S b l E t D t L g/Sh t B i P i C t St #1 C t St #2 E it D t E it P i P i t Pi P/L

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

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    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 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 -0.017

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

    1@ 102.58

    +3.58

    Shanghai 4/22/2014 Short 2185 2171 2146 5/29 1@2144 +41

    AUDCAD 4/29/2014 Short 1.01 1.015 1.0123 6/4/2014 1 @ 1.015 -.05

    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 6/4 1 @ 125371 @ 125.025

    0.295

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

    * 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

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

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    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 722.25 656.50 5/23/2014 655.25 +67.0

    Cocoa 5/9/2014 Short 2866 3074 3213 6/4 1/2 @ 3074 -208

    NZDJPY 5/29/2014 Short 0.86 92.63 90.29

    Russell 2000 5/28/2014 Long 1140 1106 1260

    Platinum 5/28/2014 Short 1466 1511 6/4 1/2 @ 1423 +43

    Copper 5/30/2014 Short 3.13 3.13

    Sample Portfolio Performance* P tf li P f i l l t d f th d l l

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    Performance Table * Portfolio Performance is calculated from month end only on clo

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

    2014 0.0%

    2015

    Risk Return Profile

    Performance YTD

    Performance since inception

    Max Draw Down

    Annual RoR

    Monthly Annual Compound Retur

    Sharpe since inception

    Profit Factor

    Next Update June 30th

    AppendixMethodology & Strategy

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    gy gy

    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 tofind specific geometric ratio wave patterns that have favorable r isk 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 thatwe have studied and thoroughly tested from each of the noted analysts and have also developed some proprietary tools of our own for trade qualification, entryand management. In terms of Elliot Wave theory we analyze waves in isolation for our primary trading time periods (daily & week ly). We dont believesubjective 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. Inessence we focus only on waves we recognize to have high probability fractal structures. Meaning only if specific geometric symmetry is identified we theninvestigate 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 orforecasted.

    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 struthat appear in the markets. Please refer to the USER GUIDE here > http://aetheranalytics.com/images/AetherConspectusUserGuide.pdf or full spfor 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 toRVALUE 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 analy

    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 whic

    http://aetheranalytics.com/images/AetherConspectusUserGuide.pdfhttp://aetheranalytics.com/images/AetherConspectusUserGuide.pdfhttp://aetheranalytics.com/images/AetherConspectusUserGuide.pdf
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    can vibrate (each associated with a specific frequency), objects favor only a few specific modes or patterns of vibrating. The favored modes (patterns) of vibrationare 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), (ATR14, 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 onlysomewhat 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 minimumputting 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 s topped 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 inthe context of each trade. When we mention Normal position size this is size that you have determined to be most optimal po sition size for your spetolerance 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 (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 neverever recommend betting the farm or going all in in any trade because it surely leads to ruin. One of our favorite Portfol io position sizing formulas trecommend 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 torisk per trade (2%, 3% and 4% are recommended), SV is the stocks 14 day ATR

    Author Bio

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    Alex Bernal, CMTAlex Bernal is a Chartered Market Technician with many years of industry experience in the equity, commodity, currency, interest rate and derivatives markets. Alexalso 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 wealthmanagement 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 areassuch 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 withthe intent on providing premier technical analysis research to his clients with a focus only on the methods that have been proven to produce quantifiable edgethrough he scientific research process. Aether Analytics deploys an approach that emphasizes on the objective not the subjective and aims to reveal therepeating 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.

    Contactaetheranalytics.com

    [email protected]+1.805.252.7161Skype : alexbernal0