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TAO = Technical Aspect Oscillator

TAO  SCIENCE                                    The Origin and Nature of the Technical Aspect

Oscillator :  TAO 2

ABSTRACT:

    OVERVIEW:  This study found a statistically significant correlation between the TAO 2 and the Dow Jones Industrial and SP 500 stock market indices, to greater than 1:10,000 against chance during the time period tested, from 1/1/1999 through 6/30/2008.  The TAO 2 is a mathematical oscillator with known planetary longitudinal, angular separations as the sole input.  It is inherently mathematical, and thus has the potential to be scientifically useful, across many diverse applications.  It is theorized here, to be a factor interrelated with global human psychology, that is being measured by stock activity.
    ORIGIN:  The TAO 2 originated from: 1) my studies of the mathematician and astrologer Donald Bradley, who first developed his Sidereoscope that evaluated planetary angular separations via an objective aspectarian, and applied it to the stock market, 2) Sherman McClellan, a mathematician and technical stock market analyst who invented the McClellan Oscillator and Summation Indices--both stock market analytical and trading tools, and 3) the psychological contrarian sentiment indicators that became popular in the 1970's and 1980's, measuring the percentage of investment advisors who are either bullish (positive, expecting rising stock prices) or bearish (negative, expecting falling stock prices).
    METHODOLOGY:  The TAO 2 is comprised of five primary integrated concepts and methodologies.  First, the aspectarian,  that assigns positive and negative numeric values to every degree of planetary separation (similar to Bradley), derives from the numbers 2 and 3, and their harmonics (different from Bradley).  The harmonics are logarithmically weighted to be mathematically consistent, and possibly scientifically applicable.  Second, also unlike Donald Bradley, only selected planetary pairs were used, both because of the nature of the comparison (to the stock market and its psychology), and because of astrological planetary significance.  Third, these selected pairs were weighted, related to orbital and periodicity factors.  Fourth, similar to McClellan, for the given time period, the raw TAO 2 oscillator is zeroed, so that the summation of all the raw TAO 2 values equals zero.  This is to compensate for planetary orbital idiosyncrasies in relationship to the aspectarian, and for the limited time frame of this study.  Fifth, the zeroed raw TAO values are then both averaged (Short TAO is nine data points) and summed (Long TAO is the summation of the Short TAO)(like the McClellan oscillator's summation index).  The TAO 2 is the average of the Short TAO and the Long TAO.  The summation provides an insight into human psychology as reflected in the TAO 2 interrelating with the buying and selling of stocks over a period of time. 
     NULL HYPOTHESIS: There is no correlation between the TAO 2 and two of the stock indices, the SP 500 and the Dow Jones Industrial Average.
     RESULTS:  Since the TAO 2 is a known quantitative variable, and stocks prices are another known quantitative variable, and they are independent, then it is statistically indicated to apply the correlation test for two independent variables: the Pearson Product-Moment Correlation.  For the Tuesday and Friday data points for both the TAO 2 and the DJIA and SP 500 indices, from 1/1/1999 through 6/30/2008:  n=990,  the Pearson r for DJIA ,  r = +0.72; for  SP 500,  r = +0.81.  The Null hypothesis is rejected at greater than 1:10,000 against chance.   There is a statistically significant relationship between the TAO 2 and two global stock indices, the DJIA and SP 500.
     RESEARCH IMPLICATIONS:  There is a need for duplication of this research by an independent investigator, and this will be possible this fall with the publication of a computer program formatted for the TAO 2.  Other stock market time intervals can also be studied.  Since the TAO 2 is theorized to be an indicator of global human psychology, then correlations to other human events might be studied, such as governmental decisions or disasters affecting large numbers of people.  On the positive side, there might be a study of a large number of successful/rich/famous individuals and their TAO 2 scores at birth.  This type of study, if it shows statistically significant results, could be expanded to include tests of the Angles (Ascendant, Midheaven, Vertex, and more).
    Beyond this, once the formulae are released this fall, it will be seen that there are, literally, an infinite number of TAO's.  The TAO 2 is only one of them.  The TAO 2 is a crude first step toward an empirical astrological research methodology.  Fundamentally, the TAO 2 is applied mathematics and applied astronomy.  It just so happens that it correlates with the global stock indices, and, therefore is useful in a tangible way.  Other TAO's might have many other significant applications.
    The avenues for future research  are virtually  unlimited.