Socionomics Says It's The Wrong Time To Flirt With Darkness

With 8% more bulls now (as measured by the Hulbert Stock Newsletter Sentiment Index) than at the May 1 market high, leave it to a new fragrance inspired by the True Blood vampire series to flash a socionomic warning.

Ads for the fragrance (it's called Forsaken) entice consumers to "Flirt With Darkness."

Notice they're not talking about blue sky and sunshine here.  That would be the stock market investors. Consumers are entranced by vampire shows.

Socionomics suggests this is an important indication of social mood because social mood trends are the cause of social action.

So if people want to flirt with darkness, they''ll have darkness to flirt with.  Plenty of it.

In The Wave Principle Of Human Social Behavior, Robert Prechter writes "When negative mood waxes, many people sell stocks, watch horror movies, prefer music that expresses dissatisfaction, and have little ecstasy to bestow."

So here we have a hit series about vampires which has inspired a fragrance (scratch 'n' sniff anyone?) that beckons us to flirt with the dark side at the precise moment that the market is even more bullish than it was months ago when it was even higher.

Social mood is telling us something.  Investors who flirt with darkness may soon have more than vampires to contend with.

Bears have claws too.  And they don't just bite.  They maul.