ther Analytics

Weekly Technical Conspectus

publish date : 4/11/2014

Author : Alex Bernal, CMT alex@aetheranalytics.com 805.252.7161

Table of Contents
Section 1 : Quick Table Summary Quick Glance Table Current Trade Setups Section 2 : Currencies AUDCAD AUDJPY AUDNZD AUDUSD EURAUD EURCAD EURGBP EURJPY EURNZD EURTRY EURUSD GBPAUD GBPCAD GBPJPY GBPNZD HKDJPY NZDJPY NZDUSD USDCAD USDHKD USDJPY USDMXN USDSGD USDTRY Section 3 : Energy Complex WTI Crude Brent Crude Section 4 : Financials 10 Year T Note 30 Year T Bond Ultra Bond Section 5 : Indices SP 500 Nasdaq 100 Russell 2000 DJIA VIX VXX VXZ Nikkei Shanghai Heng Seng Jakarta Section 6 : Metals Gold Silver

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

Symbol

Current Trade or Setup Time Frame Recommended Entry Price Current Stops Targets Quick Note

*Symbol is bold if trade is at a critical level

AUDCAD AUDJPY AUDNZD Daily

Sell Stop Entry 95.00 1/2 @ 9714 , 1/2 @ 97.63 (1) 93-92, (2) 89 -87 Very Clean pattern with good ratios and corrective structure. Sell stop to entry suggested at 95 Fractals Exist but pattern rank is not high enough for trade suggestions.

AUDUSD
EURAUD EURCAD EURGBP EURJPY EURNZD EURTRY EURUSD GBPAUD GBPCAD GBPJPY GBPNZD HKDJPY NZDJPY NZDUSD USDCAD USDHKD

Daily
Weekly

Sell Stop Entry 0.9307

Buy Stop Entry 1.488

1/2 @ .9586, 1/2 @ .9552

1/2 @ 1.436, 1/2 @ 1.424

91 & 88
1.5948 minimum

Overall more aggressive (risky) structure but still high pattern rank. 3/4 of normal position size suggested
Very nice 1x1 rhombus correcting against a prior 5 wave up. No Harmonic pattern. Upside Bias EW forecast No tradable patterns. Upside bias No tradable patterns. Clearly tracing out a corrective symmetrical triangle pattern. Breakout targets (150 or 134) long term

Daily

Buy Stop Triggered 1.605

1/2 @ 1.575, 1/2 @ 1.569

1.64 & 1.70

Semi complex bullish butterfly harmonic pattern. Buy stop to entry has triggered. Trade is live. ABC corrective type structure. Slight upside bias. No trade suggestions currently

Weekly

Sell stop entry 1.367

1/2 @ 1.415, 1/2 @ 1.424

1.24

Large Scale primary Gartley reversal pattern identified. Weekly scale Trade PRZ not Met yet. Head and shoulders pattern breakout still underway, possible bullish butterfly at 1.7546 No tradable patterns. Upside bias No tradable patterns. Downside bias

Daily

Buy stop entry 1.953

1/2 @ 1.895, 1/2 @ 1.885

2.002.03, LT 2.10

Bulllish Cypher encompassing a bullish butterfly fractal harmonic pattern. Complex structure. Lower profit potential No tradable patterns. No bias

Weekly Daily

Sell stop entry 86.00 Entry triggered .8635

1/2 @ 92.98, 1/2 @ 93.99 1/2 @ 0.88. 1/2 @ 0.885

78 & 70 0.8472 & 0.8150

High ranking symmetry 5 wave EW pattern with Bearish Harmonic within Wave 4 and 5. Great trade setup Deep Crab with minor three drives patternBearish No tradable patterns. Upside bias No tradable patterns. Downside bias

Symbol

Current Trade or Setup Recommended Entry Price Current Stop Target Quick Note
No tradable patterns. Potential Bullish Gartley, Pattern rank is too low to suggest trade. Potential Bullish Bat, PRZ Not Reached Yet No tradable patterns. Sell stop entry 102.58 1/2 @ 106.96, 1/2 @ 107.61 99 & 94

*Symbol is bold if trade is at a critical level

USDJPY USDMXN USDSGD USDTRY WTI CRUDE BRENT CRUDE GOLD SILVER 10 YEAR NOTE 30 YEAR BOND SP500 NASDAQ 100 RUSSELL 2000 DJIA VIX VXX VXZ NIKKEI SHANG HAI INDEX HENG SENG JAKARTA
Sell stop entry 4704 1/2 @ 4151, 1/2 @ 5209 4000 Buy stop entry 135.16 131.16 142.16

High pattern rank Bearish Gartley. Great trade set up. Suggest 150% of normal position size Very complex pattern, no trade suggested. No tradable patterns. Possible Bullish Bat, PRZ not reached. Aggressive traders we recommend selling OTM put spreads. Bullish Bat Reversal confirmed, First target almost reached. No trade currently Reverse Head and Shoulders breaking out, Small long trade suggested No tradable patterns. Possible Bullish Bat. Need PRZ to hold and momentum to decelerate before we suggest an entry Possible Bullish Bat. Need PRZ to hold and momentum to decelerate before we suggest an entry No tradable patterns. No tradable patterns. No tradable patterns. Downside bias Bearish Bat, Low pattern Rank. No tradable patterns. No bias Great Weekly bearish Gartley pattern after a extension high. Should have nice performance to the downside

BOMBAY SENSEX

No tradable patterns. Upside bias

Forex

AUDJPY - Great Pattern setting up here. Clear corrective type wave structure from A to D. X is very impulsive, which should contribute to a well behaved reversal here. Aggressive traders could dip in shorting here. For more conservative traders, waiting for a move below 95 is prudent. Sell stops to entry at 95, with stop loss levels at 97.14 for 1/2 the position and 97.63 for one half the position are calculated. Targets of 93 and 89.

AUDNZD - Smaller scale harmonic repeating fractal. Complex flat corrective EW structure. If AUD weakens across the currency matrix this could be a nice reversal. No Trade suggestion because pattern rank is too low.

AUDUSD- Broke out of reverse head and shoulder base and had a nice leg up to almost 0.786% of the previous primary 5 wave. Currently sitting over extended to the upside with respects to its volatility bands (natural movement). This means it could be currently in a blow off or high emotion state still. We consider this trade more risky so aggressive traders should wait for intraday confirmation to test the waters shorting here. A conservative sell stop to entry at 0.9350 is suggested with targets of 0.91 and 0.88. Stops should be considered between 0.9586 and 0.9552

EURAUD - Very nice AB = CD wave setting up here at .618% of the previous impulse wave. Clearly a nice area to get long with the prevailing trend. Detrended oscillator confirms a moderately oversold reading as well. Buy stop to entry at 1.488 is suggested with stops 1/2 @ 1.436, 1/2 @ 1.424. Minimum expected target is 1.59

EURAUD - Daily look

EURJPYCorrective Symmetrical triangle. Slight upside bias despite the double top underneath a major top formation.

EURNZDSemi complex corrective type bullish butterfly pattern. Pattern rank is moderate so we suggest a 3/4 normal position size in this trade. Target 2 might be out of reach in our opinion but the measurements suggest a 1.72 LT target move. Buy stop to entry was triggered 4/11/2014, stops are at 1.575 for 1/2 the position and 1.568 for 1/2. Preceding structure lacks the traits of a 5 wave impulse or extension (blow off) at X so we are less confident in this particular trade.

EURUSD 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 tested yet but we think this pattern is of high enough rank to merit early short positions for aggressive traders. No formal trade is suggested yet until the PRZ is reached for conservative traders. But if the PRZ gets hit a sell stop to entry at 1.367 is what we calculate. Stops at 1.424 and 1.415 would be used if filled. Potential downside targets could be 1.24 or new lows long term.

GBPAUD Head and shoulders top breakout is still under way. Measured minimum move is below 1.72. Given the wave structure its possible to have a reversal at 1.76 when we get a confirmation of a bullish butterfly harmonic pattern. No trade suggested currently.

GBPNZD Bullish Cypher pattern is encompassing a bullish butterfly pattern. The very complex nature of this structure lowers its over all pattern rank but since we can see a 5 wave impulse from the X point of the cypher pattern there still is great potential for this pattern to have a nice move. We suggest using 3/4 of your normal position size on this trade. Buy stop to entry is suggested at 1.953 with stops at 1.895 and 1.89. Measured move targets at minimum at 2.00 and we suggest taking off 3/4 of the total position if this is reached since the target 2 is beyond what we see feasible in the next move.

NZDJPY 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.

NZDUSD Bearish deep crab pattern with a minor 3 drives at the PRZ point give us moderate conviction for this trade. We identified a nice 3 wave divergence on the Detrended oscillator indicating that the momentum of this current move is decelerating substantially. Sell stop to entry was triggered on 4/11/2014 at 0.8635. Stops are place at 0.8835 and 0.880. Potential targets include 0.8472 and 0.8150

USDMXN potential bullish Gartley pattern

USDSGD potential bullish Bat, PRZ not yet reached

Commodities

WTI Crude Oil High pattern rank bearish Gartley pattern identified. Sell stop entry @ 102.58 suggested, with stops to be placed at 106.9 and 107.6 respectively. Possible targets include 99 and 94. Since the geometry of this pattern is in the higher quartile of our ranking system we suggest a 150% increase of normal position size for aggressive traders.

Silver Possible bullish bat, PRZ not yet reached.

US Ten Year Treasury NoteWeekly Reverse Head and Shoulders bullish breakout. Large primary butterfly held support and we are now seeing a bottom structure reversal. Small buy stop to entry at 135.16 is recommended with stops at 131.16, possible target measured move is 142.16.

Indices

NasdaqPossible Bullish Bat. Need PRZ to hold and momentum to decelerate before we suggest an entry

Russell 2000Possible Bullish Bat. Need PRZ to hold and momentum to decelerate before we suggest an entry

Jakarta IndexHigh 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.

Trade Log
Symbol
EURNZD NZDUSD

Entry Date
4/11/2014 4/11/2014

Entry price
Buy Stop entry triggered 1.605 Sell stop entry triggered 0.8635

Exit Date

Exit Price

Points or Pips P/L

Notes
Stops at 1/2 @ 1.575, 1/2 @ 1.569 currently Stops currently at 1/2 @ 0.88. 1/2 @ 0.885

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 manual ly 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. 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 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. Contact alex@whentotrade.com +1.805.252.7161 Skype : alexbernal0