Socionomics - Hidden Engine



Social Mood Moves the Markets

Social mood dictates where the stock market and the economy heads. When the social mood changes, it first gets recorded in the stock market because it is easy for investors to express their opinion in the market. After that, the mood reflects itself on the economy, in the form of layoffs, hiring, consumers shopping, or borrowing, or paying off debt. Here is Bob Prechter explaining a socionomic view of the markets.

Part 1:


Part 2:


Part 3:


Part 4:


Become a member at Elliottwave International to get access to upto date financial forecasts:

Elliottwave International

Robert Prechter’s Minyanville Interview about Socionomics and Markets:

Part 1:


Part 2:


We're excited to announce that our friends at Elliott Wave International are offering a free 50-page report from Robert Prechter. Although originally published in 1985, “Popular Culture and the Stock Market” is so timeless and relevant that USA Today covered its insights in a recent November 2009 article.

The report walks you through the ups and downs of the DJIA -- our most sensitive meter of social mood -- and analyzes the trends in popular music and TV shows through periods of positive and negative social mood over the past century. It reveals how social mood as reflected in the stock market actually defines popular culture.

Wall Street legend and best-selling author Robert Prechter says "You can almost hear the Dow going up and down over the airwaves." Watch this 3-minute clip from his documentary History's Hidden Engine to see how social mood governs movements in the stock market and trends in popular culture. Then access his 50-page report "Popular Culture and the Stock Market" FREE.



Here is some interesting reading about the effect of social mood on the destiny of pop stars, a free download: "Social Mood Regulates the Popularity of Stars -- Cases in Point: The Beatles"

News and Events Do not Move the Stocks

Mainstream media would like you to believe that the news are driving the markets. They always find a reason to explain why stocks go down or go up. The truth is everyday there are good news and bad news and the media picks the headline to explain the stock market action that has already happened. Sometimes the headline changes upside down during the same day: Here is an example of how news does not drive the stock market, but it is the social mood that ultimately decides how these news are interpreted. According to socionomic theory, news is the result of prevailing social mood. Thus, good news tend to appear at market tops, and bad news appear at market bottoms.

Earnings Do not Drive the Stocks

Similar to news, earnings are a lagging indicator. As social mood improves, people first act in the stock market, drive prices up. After the market moves, effects of positive mood is seen in the rest of the economy. This is why during a recession, the stock market rallies first and the recession is declared over as the rest of the economy improves. Similarly, a bull market tops with good earnings and earnings decline as the stock market declines. Worst earnings appear at market bottoms.

Socionomics Conference

The coming 2011 Socionomics Summit on April 16 in Atlanta will indeed discover "New Horizons" -- which is precisely what this emerging science has done time and again in recent years.

Attendees will be able to hear, ask questions of, and mingle with 14 of the foremost academics, writers and researchers who contribute to the science of socionomics. Even now, their innovative work is helping to define the critical role that social mood plays in human affairs. The featured speakers include:

  • · Successful hedge fund manager Scott Reamer
  • · Indiana University professors Johan Bollen and Huina Mao, contributing authors of the widely-reported academic paper "Twitter mood predicts the stock market"
  • · Scholar and best-selling author of Mood Matters, John Casti
  • · Emmy award-winning Minyanville sage Kevin Depew
  • · The man who discovered socionomics, Robert Prechter

This list is just the beginning. Speakers also include the Socionomics Institute's research fellow at the University of Cambridge, Matt Lampert, as well as in-house researchers Alan Hall and Euan Wilson, whose research continues to demonstrate how social mood drives social action.

Please know that the phrase "new horizons" is no exaggeration. As published in The Socionomist, our recent studies of social mood have anticipated a mind-boggling series of global trends and events:

  • · "War and Peace in the Middle East" (Dec. 2010) was weeks ahead of the violence and shockwaves of protest that changed the political landscapes of Egypt, Tunisia, Yemen, Libya and beyond.
  • · "Authoritarianism" (April 2010) forecasted increased internet regulation and warned of a possible cyber war -- months before the WikiLeaks controversy broke.
  • · "The Coming Collapse of Modern Prohibition" (July 2009) anticipated the dramatic escalation of violence in Mexico's deadly drug war. It also called for growing American tolerance of marijuana use.
  • · "Authoritarianism" (April 2010) warned of unprecedented new forms of government control even in ostensibly free countries like the U.S. Since then, news events include the advent of secret government GPS controls on cars, airport pat-downs and document checks on train travel inside U.S. borders.
  • · "The Developing European Tinderbox" (Dec. 2009) preceded the biggest story in Europe in 2010 -- the re-kindling of old ethnic and national hostilities and the possible coming dissolution of the euro.

For more information about the 2011 Socionomics Summit: New Horizons in the Study of Social Mood, simply follow this link.


History's Hidden Engine - Watch it for free


Home | Stock Market | Latest Opinion | Forex Trading | Inflation | Housing Market | Financial Crisis | Elliott Wave | Contrarian | Forecasting | Conquer the ... | Socionomics | Market Signals | Banking System | Free Download | Message Board | Financial Web Sites | Great Depression | EWI Articles |


Trading the Stock Market - Stock Market Timing

Bookmark and Share  

November 29, 2013
Janet Yellen is About to Make History

August 2, 2013
Deflation in Europe

July 20, 2013
Extreme Sentiment Threatens Europe

June 19, 2013
How to Spot a Stock Market Top

Marh 6, 2013
Jaguar Inflation - A Layman’s Explanation of Government Intervention to Free Markets

February 7, 2013
Should you or should you not diversify your investments?

December 14, 2012
Are we in Bull Market?

October 17, 2012
How to Prepare for the Coming Crash

September 23, 2012
Bond Market Bubble

July 27, 2012
Stock Market Crash

June 29, 2012
Is Your Bank Safe?

April 14, 2012
How to stay safe during the next economic crash?

March 28, 2012
European economy is contracting, is the US next?

February 5, 2012
How Deep Will the Cuts in Government Services Go?

January 25, 2012
Why do Traders Fail?

November 15, 2011
What are the Best Technical Indicators for Stock Market Trading?

October 20, 2011
Money, Credit and the Federal Reserve Bank

September 19, 2011
How Does Money Disappear in the Stock Market?

September 2, 2011
Behind Closed Doors at the Federal Reserve

August 18, 2011
Stock Market in Free Fall Territory

July 4, 2011
Can the Fed and the Economists Forecast the Future?

June 27, 2011
Trading and Investing Using Elliott Wave Theory

June 10, 2011
Is Lower Trade Deficit a Bullish Sign for the Stock Market?

May 3, 2011
Bin Laden and the Stock Market

April 19, 2011
Is deflation a threat despite Bernanke's printing press?

March 10, 2011
Pop culture, markets and the social mood

January 6, 2011
Do Earnings Drive Stocks?

December 22, 2010
Why Diversification Does Not Work in Today's Markets

November 24, 2010
Individual Investors Have Jumped Into Another Fire - Muni Bonds Crashing

October 27, 2010
Why You Should Care About DOW (DJIA) Priced in Gold

September 23, 2010
Signs of Deflation

August 19, 2010
Efficient Market Hypothesis - Is the Market Really Efficient?

August 10, 2010
Economic Crisis That No One Saw Coming

July 12, 2010
Stock Market Bottom and DOW Dividend Yield History

July 2, 2010
Deflationary Crash Ahead - Long Bear Market Looming

April 19, 2010
Goldman Sachs Charged With Fraud

April 6, 2010
Understanding the FED

March 16, 2010
What To Do With Your Pension Plan?

March 15, 2010
Popular Culture and the Stock Market

March 11, 2010
Five Fatal Flaws of Trading

March 9, 2010
Does Gold Always Go Up In Recessions and Depressions?

February 25, 2010
Credit Default Swaps Indicate Trouble for European Debt

February 23, 2010
News is Not What Moves the Markets

February 22, 2010
What Chinese Malls Tell Us About the Economic Reality

February 20, 2010
How Elliott Wave Principle Can Improve Your Trading

February 19, 2010
Europe’s Return to Risky Investment

February 17, 2010
Stock Market Myths

February 11, 2010
Robert Prechter on Herding and Markets\’ “Irony and Paradox”

February 10, 2010
Will The Bears Relinquish Control?

February 5, 2010
EUR/USD: What moves forex markets?

January 27, 2010
Can Bernanke Survive the Bear Market?

December 4, 2009
If You Think the Past Decade Was Bad For Stocks, Wait Till You See This

November 20, 2009
The FDIC Anesthesia Is Wearing Off

November 6, 2009
Financial Mania: What record trading volume says about confidence

October 29, 2009
Black Monday: Ancient History or Imminent Future

October 20, 2009
Gold: Bull or Bubble?

October 9, 2009
Death of the US Dollar

October 5, 2009
Why Technical Analysis Beats Out Fundamental Analysis

September 17, 2009
Germany’s DAX: Free Insight into Europe’s Leading Economy

September 15, 2009
Five Tips for Successful Trades

September 8, 2009
How A Bear Can Be Bullish And Still Be Right

September 4, 2009
Prechter Stands Alone Again - He’s Done the Math

September 2, 2009
How IRAs Can Tie Investors’ Hands

August 20, 2009
The Bounce is Aging, But The Depression is Young

August 13, 2009
Emotional Pitfalls of Trading

July 23, 2009
The Three Phases of a Trader’s Education

July 15, 2009
Spot a Pattern That you Recognize

June 15, 2009
A Road Map To SENSEX 100,000

May 29, 2009
Gold Is Still Money

April 23, 2009
Think That Central Banks Move the Markets? Think Again

April 2, 2009
Bob Prechter on Silver & Gold

March 25, 2009
Key To Trading Success: Ignore Nature's Laws?

March 19, 2009
Are We Near a Low in the Stock Decline?

March 11, 2009
6 Questions You Should Be Asking About the Financial Crisis (And 6 Must-Read Answers)

March 6, 2009
How To Tell a Good Forecast from a Bad One

February 26, 2009
A Better Way To Handle a Shrinking Business

February 19, 2009
The Last Bastion Against Deflation: The Federal Government

February 10, 2009
10 Things You Should and Should Not Do During Deflation