SOMC utilizes multiple mathematically created astrological oscillators (TAO--Stocks/ETF's and TAOg--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 trading results, using a balanced yet dynamic ETF Portfolio, are posted on this and the Notes pages. SOMC has two primary purposes:
1) To demonstrate the mathematical and scientific nature of the TAO 2
2) To use the TAO 2 with technical market analysis and the ETF Portfolio to time trades effectively
WHAT the TAO 2 IS: (updated 10/19)
The TAO 2 is a technical aspect oscillator, (100% mathematical in nature, astrological in its implications) and correlates with the SP 500, the DOW and other global stock indices, to greater than 1:10,000 against chance. The TAO 2 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.
It is strictly mathematical: planetary values into the TAO formulae, and the TAO 2 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 2 does. The study of the mathematical nature of the TAO 2 and its correlations with human activities has the potential to become a new field of scientific endeavor.
HOW SOMC APPLIES the TAO 2:
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 2 has been a 25+ year project. The graphs of the TAO 2 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 2 is below zero and falling, fear and pessimism dominate, manifesting in stock market declines. When the TAO 2 is above zero and rising, happiness and optimism dominate, manifesting in rising stock market prices. I combine the TAO 2'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 SOMC ETF Portfolio is a balanced selection of Global Stock Indices and specific major individual sectors that creates significant trading opportunities with reduced risk. On this and the Notes pages are the results of 2+ years of real-time trading using the TAO 2 and technical market timing systems.
On 11/3/08 the ETF Portfolio went into contract only. SOMC works with those who prioritize the environment and scientific endeavors.
Sector 1 has the Global Indices that trend best with the TAO psychology and cover the globe, primarily spy and efa, with the addition of one flex ETF. Sector 2 has global market sectors that also trend with the TAO, with more variance, including, but not limited to, xlf, xlk, iyr, iyt, pbw. And Sector 3 usually focuses on inflation-related ETF's, including, but not limited to, gld, slv, oil, ung, rji, rja, dba, pbw, ewa, ewc, ewz. The first eight Sector 3 ETF's are directly commodity related. Countries that have significant commodity exposure are ewa, ewc, and ewz. GLD happens to correlate very well with FXE (Euro) and opposite the US Dollar index, and therefore is useful for currency trading. (TAOg (for gold), is under development). The last typical Porfolio had: 1) spy, efa, iwn, 2) efu, xly, iyt, and 3) efa, gld. There are many variations on the theme.
The TAO 2 is a component of the technical trading models that have been created. Statistically, using the TAO 2 benefits trading results. However, it is important to note that the TAO 2 is only one technical tool among many. The stock markets have in the past trended against the TAO 2 direction for extended and indeterminant periods of time.
SOMC utilizes relatively complex mechanical models to time and trade short and intermediate term. With the introduction of the 10/16 MT3MM1 trade, the published trades are now intermediate (days to weeks, usually) term. Mechanical models have the advantage of eliminating subjectivity. The T3MM1 models have parameters that include current market volatility. The LT2MM1 (Long TAO 2 mechanical model) and its results are published on the LT2MM1 page. On 1/2/2008, The LT2MM1 leveraged short the SP 500 index at 1447. and is still holding that trade.
SOMC's Focus: