Is wave 2 over yet?

Well, we did think that wave 2 was over and that wave 3 had started way back in October. Hopefully, wave 3 has now begun. But I have been chastened by my last blog posts. Wave 2 has been difficult to comprehend and I have realized that this is always the case. Of course it didn't help that Federal Reserve injected more than 600 billion dollars into the system. Why did they do that? Obviously they think the economy is in deep trouble. They are actually trying to jumpstart inflation. Then need the consumers, that's us, to go out and buy. Will the strategy work. I don't think so unless they can find jobs for the 21 million people that are out of work. The injection of money was supposed to raise the price of stocks and of assets. It worked initally. The stock market jumped and the price of gold took off. But in the past week, gold and stocks corrected or began the start of wave 3. But we have to be careful. This might be another fake out. The market is trending down. But will it continue to trend down. We hope so. But there may be another petit wave up to complete wave 2. I think the best strategy at this time is to be in cash or be short the market. But be careful and be patient. Tricky wave 2 may still have some life left in it.