Abstract
In this final assignment of Technical Analysis and Market Psychology II, I would like to give another point of view on what determines the rise or the fall in stock markets. The basic view of stocks is that the stock markets will provide events that will make people happy or optimistic. In the first part I will present the Socionomic Sciences, developed by Robert Prechter. I will then illustrate the theory of Socionomics with the fashion and finally I will link the two subjects of fashion and stock markets to mythology. Socionomics is the study of the social mood, the self-regulating natural law of growth and expansion that guides human social progress. This study continually relates cultural phenomenon to the stock market because it is the one field of mass behavior where detailed and voluminous data exists. It was this data that first revealed the patterned form of social mood, which R.N. Elliott discovered and named the Wave Principle in the 1930s. In the 1980s and 1990s, Robert Prechter proposed a larger socionomic hypothesis, that the Wave Principle ultimately shapes the dynamics underlying the character of all human interaction. Prechter holds that the rise and fall of the social mood is the engine of history itself. When social mood becomes more negative, people sell stocks, behave less productively, vote for challengers, have fewer children, blow off more bombs, and act belligerently toward their neighbors.
