SOMC utilizes multiple mathematically created astrological oscillators:
TAO Technical Aspect Oscillators, for Stocks/ETF's, the TAOg for Gold, and
Technical stock market cycle analysis, combined with a global perspective and 25 years of trading experience, to time and trade STOCK, GOLD, bond, currency, oil, agricultural and other ETF's profitably. The SOMC results using a simplified ETF Portfolio, are posted the Home/Notes pages.
SOMC has three primary purposes:
1) To demonstrate the mathematical and scientific nature of the TAO 3.
2) To use the TAO 3 with technical market analysis and the ETF Portfolio to time trades effectively, especially in Stock Index ETFs and Gold (please refer to the Notes and ST3MM1 pages for trading history and results).
3) To end the "paralysis of analysis". ETF/stock "value" analysts and forecasters are not necessary. Most of the time most of them are in serious error. The safest and most effective method to earn money in both Bull and Bear markets (and this is now the First Global Depression) is through selected ETF's, disciplined money management, and statistically documented technical trading tools. Every person with simple mathematics skills and discipline can be a successful investor.
WHAT the TAO 3 IS: (updated 3/ 11 /09)
The TAO 3 is a technical aspect oscillator, (100% mathematical and astronomical by nature, astrological in its implications) and correlates with the SP 500, the DOW and other global stock indexes, to greater than 1:10,000 against chance. The TAO 3 is theorized to be a Global Psychological Indicator. One of its many applications has been to track the rise and fall of global stock market (ETF) prices.
The TAO 3 is strictly mathematical: planetary values into the TAO formulae, and the TAO 3 numbers out. Therefore, it is an objective oscillator, with multiple potential applications. To the best of my knowledge, from Donald Bradley's efforts in the 1960's to the present time, there has not been a published astrological oscillator that correlates real-time with global stock indices as the TAO 3 does. The study of the mathematical nature of the TAO 3 and its correlations with human activities has the potential to become a new field of scientific endeavor.
HOW SOMC APPLIES the TAO 3:
The three TAO values (short, intermediate, and long term) and trends have statistical reliability and significance, and, therefore, probable predictive value relative to global stock prices. The creation of the TAO 3 has been a 25+ year project. The graphs of the TAO 2 (similar to the TAO 3) are shown from 1/1/1999 through 12/31/08.
The rise and fall of global psychological optimism and pessimism correlate with the rise and fall of global wealth, as measured by stock prices. When the TAO 3 is below zero and falling, fear and pessimism dominate, manifesting in stock market declines. When the TAO 3 is above zero and rising, happiness and optimism dominate, manifesting in rising stock market prices.
SOMC combines the TAO 3's intrinsic value with 25+ years of technical market analysis and developing technical trading systems to time the price movements of the stock and commodity markets effectively.
The graph of the aspectarian (that assigns positive and negative numbers to every degree of planetary pair angular separation) is not shown. This graph, however, not only validates many traditional astrological tenets on the nature of aspects, but also suggests that Elliott Wave fundamentals have merit. The aspectarian clearly shows both 5 waves in one direction and 3 in the other. SOMC uses relatively complex mechanical models to time and trade short, intermediate and long term.
Mechanical models have the advantage of eliminating subjectivity. For longer term traders/investors the ST3MM1 (Slow TAO 3 mechanical model) and its results are published on the ST3MM1 page. On 1/2/2008, The ST3MM1 leveraged short the SP 500 index at 1447 (SPY at 142.80). and is still holding that trade. That means for the entire year 2008, into the current 2009 declines, the ST3MM1 trade gained value from the fall in the market.
SOMC's Focus:
SOMC is providing several, real-time services.
1. Displaying the TAO 2 (later, the TAO 3) graphs and functions
2. Correlating of the TAO 3 with a broad spectrum of global ETF's
3. Giving Technical market analysis & timing
4. Developing the SOMC ETF Portfolio
5. Timing the global ETF Portfolio using the TAO 3 and technical market analysis
6. Demonstrating real-time profitability using the TAO 3 combined with technical market timing systems, and reducing risk, via the SOMC ETF Portfolio during challenging stock market conditions.
7. Evolving a new field of scientific study with the TAO 3 as a global psychological indicator.
8. Incorporating feedback from viewers on features to add, and improvements to be made on SOMC--a joint endeavor.
9. Analyzing Financial and other news with a global perspective.
10. Sharing some of the fundamentals to be incorporated in the book that I will write on the TAO 3, its global psychological interactions and implications, and how it relates with global equities and human/Earth events.
July 2, 2009 (all times are CDT)
See Notes: 0600; and 0800 post-report
Today's trades:
SOMC Portfolio: 7/ 02 /09
TAO 3 MT3MM1 Positions
ETF B OPEN Date Time(s)
SDS B 53.95 7/01 1000
GLD B 90.56 6/23 1100
ETF: Buying one share of these ETFs does this:
SP 500: SPY Long SSO Leveraged Long
SH Short SDS Leveraged Short
Gold: GLD Long DGP Leveraged long
UUP Short DZZ Leveraged short
(UUP=US Dollar used when somc is short gold, non-leveraged)
MT3MM1 Closed Trades: 7/ 02
ETF B OPEN Date S CLOSE Date Time +/- %
(After normal, slippage, errors, volatility, and other trading factors are included, maybe 1/3 of the below returns might happen, and losses are always possible. SOMC posts the trades mainly as a reference for probabilities in the stock and gold markets.)
Results: ETF Portfolio + 399.6%
QUICK TAO 3 Mechanical Model 1 (QT3MM1):
From 5/ 5/ 06 through 7/ 01 / 09:
(most of this profit derived from high volatility trades combined with 15min and Hourly charts)
SP 500 + 439.5%
Gold/UUP + 359.8%
SLOW TAO 3 Mechanical Model 1 (ST3MM1):
From 9/ 1/ 1998 through 7/ 01 / 2009:
(For institutional, large and/or conservative investors)
SP 500 Index + 216.0%
From 1/02/08 S2 SPY 142.80
(Leveraged short SPY)
(or buying SDS, profiting from declining SP 500 value)
CHANGE: Possible new trade within one month.
11/24: TAO 3 2009 Graph available. $25.00 US
The graph covers 1/1/2007 through 12/31/2009, and is the most statistically accurate and usable TAO graph--the TAO 3.
In other words...State of the Art...
Other time frame variations, anytime from 1/1/99 through 12/31/09, are available upon request at $25.00 each, or $50.00 for three.
Check, money order, or case: email or snail mail
Payable to: Schulz on Market Cycles
PayPal: my email address.
From this time somc will occasionally comment on the TAO 3 longer term direction...
I speak at the ISAR conference in Oak Brook, IL,
Aug 23, 2009 , at 11:30am, at the Oak Brook Marriott Hotel.
www.ISAR2009.com
CONTACT: www.richardschulz12@yahoo.com
Richard Schulz
PO Box 7863
Gurnee, IL 60031
847-275-1098
Richard Frank Schulz 07/09/1950, 1510 est, Detroit, MI, USA
Bachelor of Science, 1978
Master of Science, Clinical Psychology, 1987
An SOMC position statement:
There are some times when I will have the same or similar position to those posted here, but 80-90% of the time I am out/flat.
Disclaimer:
SOMC tries to ensure that the information provided is complete and correct, but does not warranty its accuracy or reliability. Information and opinions may change without notice, so readers are advised to check any material items(s) with an adviser before making any decisions. SOMC is for information purposes only, and does not constitute any kind of investment advice. It should also be noted that simulated performance is not a guide to future performance. Neither is past performance a necessarily reliable indicator of future performance. No return of capital is implied or guaranteed. There is a risk of loss of capital whenever money is invested, and we do not hold ourselves responsible for your stock trading or investing decisions. No representation is being made that any account will or is likely to achieve profits or losses similar to any presented or discussed here. Absolutely consult your registered financial advisor and your risk trading plan before ever investing or trading any financial instrument. All intellectual property rights in SOMC and website are, and at all times remain, the property of Richard Frank Schulz. The content of Schulz on Market Cycles (in particular, the TAO 2, future generations of the TAO, the TAOscope, TAOgraph, TAOtransits, TAOtrader, and other TAO products), are protected by copyright. The reproduction or duplication of information or data, especially the use of terms, wording, figures or graphs, is subject to prior approval of Richard Frank Schulz.