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Weekly Chart Review

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.

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.

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 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.

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

Japanese stocks like a lower yen.

Japanese stocks like a lower yen.

And Japanese small cap stocks will like it even more.

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.

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.

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