ther Analytics

Weekly Technical Conspectus

publ i sh date : 5/23/2014
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
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
Symbol Current Trade or Setup *Symbol is bold if trade is at a critical level
Time Frame Recommended Entry
Price
Current Stops Targets Quick Note
AUDCAD Daily &
Weekly
Entry 1.01 Triggered 1/2 @ 1.0254 1/2 @ 1.0181 0.99 & 0.96 Trade is Live
AUDJPY Daily Entry 95.00 Triggered 1/2 @ 95.72 (1) 93-92, (2) 89 -87 Trade is Live. 1/2 was stopped out at 95.89
AUDNZD No tradable Patterns
AUDUSD Daily Entrys 0.935 & (0.93) NEW 1/2 @ 0.9429 91 & 88 Trade is Live (Reentered on trendline break 0.93
CADJPY
EURAUD Weekly Entry 1.488 Triggered 1/2 @ 1.47, 1/2 @ 1.45 1.5948 minimum Trade is Live
EURCAD H&S Top Confirmed (Trade suggested for aggressive traders, but we will not take)
EURGBP Possible bat support on weekly 0.79. Low pattern rank Butterfly on Daily.
EURJPY Daily Entry Triggered 140.00 All @ 141.29 134 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 @ 1.420, 1/2 @ 1.404 1.24 Trade is Live
GBPAUD Retest of Neckline Again
GBPCAD Possible complex head and shoulders top pattern
GBPJPY fractals
GBPNZD Daily fractals
HKDJPY Weekly Continuation Triangles
NZDJPY Weekly 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
NZDUSD Daily Sell stop entry 0.85 1/2 @ 0.867. 1/2 @ 0.874 0.835 & 0.815 First Trade Fully stopped out @ 0.876, Waiting for Broadening Pattern to confirm re entry
USDCAD Bearish 5-0
Symbol Current Trade or Setup *Symbol is bold if trade is at a critical level
Time Frame Recommended Entry
Price
Current Stop Targets Quick Note
USDJPY Weekly EW complete 5 wave cycle
USDMXN Failed Bullish Gartley : ABC symmetry developing
USDSGD Potential Bullish Bat, PRZ Not Reached Yet
WTI CRUDE
BRENT CRUDE 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 Daily Entry Triggered 125,05 1/2 @ 125, 1/2 @ 124.44 128 Trade is Live
30 YEAR BOND Weekly Entry Triggered 135.16 132.50 142.16 Trade is Live
SP500 No tradable patterns.
NASDAQ 100 Bearish H&S Pattern + Gartley
RUSSELL 2000 Daily Buy stop entry 1140 1/2 @1070 1/2 @ 1057.4 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 @ 2176 1/2 @ 2146 1980 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
HENG SENG Weekly Gartley Possibility
JAKARTA Weekly Sell stop entry 4799 1/2 @ 5251, 1/2 @ 5381 4000 ENTRY WAS NOT TRIGGERED YET.
BOMBAY SENSEX Weekly Sell stop entry 22077 19000 Bearish crab & 5 wave complete EW impulse
GOLD Weekly Buy stop entry 1400 1/2 @ 1196.3, 1/2 @ 1153 1650 Weekly Possible bullish reverse head and shoulders
SILVER Daily Buy stop entry 20.00 1/2 @ 18.55 1/2 @ 18.19 22 & 24 Possible Bullish Bat, PRZ reached. Looking for a move through 20 to trigger buy stop to entry
Platinum Daily Sell stop entry 1466 All @ 1522.30 1432 & 1380 Bearish Butterfly
Palladium Daily Entry Triggered 800 1/2 @ 841.75 770 & 720 Trade is Live (1/2 Trade stopped out at 830.13)
Copper Low Structure Ranking Bearish Gartley
Corn Possible Bullish Shark
Soybeans Weekly Daily Sell stop entry 1440 1/2 @ 1604, 1/2 @ 164 1300 & 1050 Multi Harmonic Resistance on Weekly Pattern. Clear 5 wave impulse complete on daily
Soybean Oil Gartley Levels shown
Oats Gar Fly on Daily
Wheat Daily Entry Triggered 722.25 1/2 @ 704.35 660 & 620 Trade is Live. Target 1 complete (covered short at 655.25)
Coffee Low Pattern Rank Alt Bat
Sugar No tradable patterns.
Cotton No tradable patterns.
Cocoa Weekly Entry Triggered 2866 1/2 @ 3172, 1/2 @ 3089 2600 & 2200 Trade is Live Bearish Crab Pattern
Currencies
AUDCAD - Daily Trade is Live. Sell stop to entry triggered 1.01, Stop levels are now revised to 1.018 & 1.027. Possible targets are .99 and .96. Analysis : Extended bearish Butterfly.
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 to see a
bearish head and shoulders 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. 1/2 of the trade position was stopped out at 95.89 . The remaining stop is now at 96.54. 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 reentered on a break of AC Trendline. Remaining position stops are now at 0.9429. 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. Pattern has now developed into a bullish bat so we have sug-
gested a new buy stop to entry level at 1.50. Clearly a nice area to get long with the prevailing trend. Current stop for remaining 1/2 @ 1.448, 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. Wave 5 leg pushed into BAT support. We have now labeled reentry levels at 1.50. If price reverses up and takes out the May high we
suggest adding back the 1/2 position that was stopped out from last week.


EURCADBearish 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).

EURGBP WeeklyPossible bat support at 0.79.


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

EURNZDWeekly PRZ
EURTRYWave 5 underway. Possible 5th wave measures a typical move very close to Bullish Bat support near 2.75
EURUSD Trade is Live. Sell stop entry triggered at 1.367. Stops at 1.420 and 1.404. Potential downside targets could be 1.24 or new lows long term. Weekly scale cor-
rective 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 tested yet but
we think this pattern is of high enough rank to merit early short positions for aggressive traders.
EURUSD Daily Look
GBPAUD Daily Look
GBPCAD Complex head and shoulders pattern confirming. Measured move target 1.77
GBPJPY Potential Cypher support at 169.

GBPNZD Fractals
HKDJPY Fractals
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 0.835 and then 0.8150 harmonic target. Stops will be place at 0.874 and 0.867 if filled.
USDCAD Nice turn from 2 weeks ago suggested bearish 5-0. Target still un reached.
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
Brent Weekly Large scale symmetrical triangle.
RBOB Gasoline Large scale Bat Resistance, Possible Diamond Top
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 124.44 & 125. Measured move target is
128. Bullish bat in early April supported the Head and Shoulders bottom pattern. Possible resistance here with a Gartley Pattern. Stops must be respected strictly here.
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
132.69 & 129.85. 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
NASDAQ 100 Daily Look.
Russell 2000 Futures Daily Look Bullish Bat confirming reversal here. Suggested buy stop 1140. If filled stops at 1070 & 1057 suggested. Possible targets 1200 & 1270.
SHANG HAI INDEX Trade is live, Entry triggered at 2185. Stops are revised to 2166 for 1/2 and 2153 for 1/2.
VXX VXZ VIX Volatility checkupSpreads between VIX and VXX & VXZ are seeing a nice push to there lower Vol band boundaries. Also term structure is quite
steep. We think this will spring board volatility slightly higher and has put in floor for the term structure in the near term. Small spread trade recommended Long VXX
Short VXZ.
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. Sell stop level revised higher to 4799. if triggered stops at 5381 & 5251 suggested.
Bombay Sensex IndexUpdate : PRZ was hit on a bearish Crab with a huge extension blow off top. There is also high ranking symmetry in respect to the 5 wave se-
quence that we labeled starting at the Harmonic A point. On a long term basic we feel like this market is way over extended and the potential retrace is quite sub-
stantial. Sell stop to entry is suggested at 22077 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. 1/2 trade was stopped out at 830.13. Stops are now at 844 for the rest of the position . 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. Re entry for 1/2 of initial position will be suggested if a break below 800 .
PlatinumDaily Look. Small scale bearish harmonic here. Pattern rank is moderate and we would like a trigger hedge in case our silver and gold trades dont pan
out. Sell stop entry 1466 with all stops at 1522 if triggered. Targets are 1430 & 1380.
CopperDaily Look Low structure ranking bearish Gartley. No Trade Recommended
Grains & Softs
CornDaily Look
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 l ows at 1280 and below at 1050.
Soybeans Oil Daily Look
Soybeans Oil Daily Look
Wheat Trade is Live. Target 1 Reached, Covered 1/2 position at 655.25. Stop for last piece is at 704.50.

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.
CottonDaily Look
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
EURNZD 4/11/2014 Long 1.605 10 1.58 1.570 5/6/2014 avg (1.575) - 0.03
NZDUSD 4/11/2014 Short 0.8635 10 0.88 0.89 5/6/2014 avg (0.876) -0.125
AUDJPY 4/15/2014 Short 95.00 10 95.72 5/14/2014 95.89 -0.89
AUDUSD 4/17/2014 Short 0.935 (0.93) 10 0.910 0.88 5/3/2014 93.65 -0.30
EURAUD 4/23/2014 Long 1.488 10 1.45 5/6/2014 104.7 -0.18
GBPNZD 4/16/2014 Long 1.953 10 1.93 5/6, 5/15 Avg 1.936
WTI Crude 4/22/2014 Short 102.58 2 102.58 104 5/1, 5/14 1 @ 99.00
1@ 102.58
+3.58, +0.0
Shanghai 4/22/2014 Short 2185 *Index (100) 2176 2146
AUDCAD 4/29/2014 Short 1.01 10 1.0254 1.0181
30 Year 5/1/2014 Long 135.16 2 142.16
EURJPY 5/9/2014 Short 140 10 134
10 Year 5/9/2014 Long 125.05 2 124.44 125
Palladium 5/7/2014 Short 800 2 844.28 832.54 5/21/2014 830.13 -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 *Size (Mini
lots or contracts)
Current Stop
#1
Current Stop
#2
Exit Date Exit Price Points or Pips P/L
Wheat 5/12/2014 Short 722.25 2 729.24 715.14 5/23/2014 655.25 +67.00
Cocoa 5/9/2014 Short 2866 2 2600 2200












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 util ize 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