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Elliott Wave in Academia? New Study Puts Its Concepts to the Test
Elliott Wave and socionomic concepts continue to gain mainstream acceptance

By Nathaniel Williams
Wed, 21 Sep 2011 17:15:00 ET
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Socionomist subscriber D.L. recently wrote to us to say:

"Socionomics should be taught in every major university in North America."

You probably won't be able to major in Elliott wave analysis or socionomics next year, but the study of social mood continues to make inroads into academia all around the world.

Of note…

  • Robert Prechter has presented socionomic ideas at Cambridge, MIT, Oxford and Georgia Tech.
  • Prechter and Wayne Parker published research that proposes a new model of finance.
  • Prominent author John Casti penned the socionomics primer Mood Matters.
  • Johan Bollen and Huina Mao's groundbreaking "Twitter Mood" study confirms a core component of socionomic theory.

And the latest example comes from three academic researchers in Greece. They published their 11-page paper in an August academic journal, but you get the details in the latest Socionomist . Here's a quick summary of their surprising findings.

The European researchers compared "buy and hold" -- one of conventional wisdom's "wisest" investment strategies -- with their own forecasting system dubbed "WASP." Then they bought and sold National Bank of Greece stock based on the forecasting system's recommendations for 400 trading days.

Afterwards, the researchers tallied their results. The WASP system netted a 6.79% gain. A respectable return, but nothing to phone home about. Yet it looks far more respectable when you compare it to the "buy and hold" strategy -- which netted a 60.9% loss during the same time.

What is this mysterious WASP? The acronym stands for "Wave Analysis Stock Prediction" -- in other words, the authors built their model using indicators based on Elliott wave concepts.

Here's what the researchers had to say in their findings:

"[The Elliott wave] theory has been found to be extremely useful and accurate, particularly in problems of forecasting."

Of course this is just one example during a particularly rough stretch in the markets. And the Wave Principle deals with probabilities, not certainties, so it's not a crystal ball. But you can see -- as these researchers did -- how useful Elliott wave concepts can be.

The same social mood that governs the stock market ALSO governs politics, wars, popular culture and other social trends. And every month The Socionomist traces these waves of social mood to forecast "unpredicted" social change that directly impacts your ability to survive and thrive in coming years.

In its brief 2-year history, The Socionomist has already anticipated developments like the Arab Spring, escalating violence in Mexico's drug war, increasing tolerance of marijuana use, rekindling of hostilities between European nations, increased Internet regulation, and more.

Get a radical new perspective on the world around you now via a risk-free subscription to The Socionomist. Preview the latest issue below.


Inside the NEW August 31, 2011 Socionomist...

SLAVERY -- Will Past Patterns
Intrude into "Modern History"?

To observe that social mood governs events is a timelessly relevant insight.

And for more than two years, each monthly issue of The Socionomist has applied that insight to the past, to the present, and to the future.

Yet perhaps the most powerful insights come from applying socionomics to the past, present and future in one article: That is precisely what the brand-new Socionomist does in the feature titled, "Elliott Wave Discovered in Records of Transatlantic Slave Trade"… KEEP READING>>

Tags: Elliott wave, Elliott Wave Principle, europe, marijuana, Robert Prechter, socionomics, The Socionomist
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