Ten Year Treasury yields have broken the intermediate downtrend and appear poised to move higher. Yields in the 4.5-5% range seem likely over the next six months to a year.

That Euro rally I highlighted a couple of weeks ago failed miserably. Next support around 130.

The Mexican Peso is still acting surprisingly well though.

The Yen on the other hand is near a breakdown and I don't expect support to hold.

Japanese stocks like a lower yen.

And Japanese small cap stocks will like it even more.

As I suggested, health care stocks were a case of buy the rumor, sell the news. The passage of health care reform was well anticipated. I don't think the sector will correct much though; reform was very positive for these companies.

Of the various healthcare subsectors, biotech looks the most attractive.