Has the long awaited bear market returned?

It appears that minor wave 5 of a larger wave 2 has finally been completed. This has been like waiting for a baby to be born from the moment of conception to the date of birth. In the case of the stock market, it took more than nine months. If this view is correct, the market will decline. How it will decline we do not know. It may be a quick decisive drop like the 2007 bear market, or it may be a slow horrible decline. At any rate, according to Elliot wave Theory, it will drop to the previous 4th wave. Depending on what market you follow, look back to see where the 4th wave began. At that point the strategy would be to cover your shorts and go long for a profitable trade. If this is truly the beginning of a bear market, and you are positioned correctly, it should be fun.

The right strategy at this time for the cautious is to be in cash or short term treasuries. For the speculators, go short at this time if you are not already short.