The Real rallied a bit at the end of the week but a downtrend may be developing. I suspect this has more to do with the new President than any government efforts to limit capital inflows. By the way, if the government were really serious about preventing a further rise in the currency they would make it easier for Brazilians to get capital out of the country.
The Australians seem to take a more constructive view of their rising currency. The Aussies don't restrict inflows and see a rising currency as a way to hold down inflation.
If austerity is so bad for economies, why does the pound continue to rally?
The Canadian dollar continues to lag the Aussie version but the recent correction has held above the 200 day MA.
How bad is the dollar? When a country with a major drug cartel problem has a better currency than you do, well, Houston, we have a problem. Behold the Mexican Peso.
Gold stocks have corrected but the uptrend is intact.
Commodities have taken it on the chin during the recent dollar bounce.
REITs took a beating in the correction. They aren't cheap historically but I'm still positive as long as the Fed keeps printing.
Coal stocks are outperforming. Consumption in Asia is rising rapidly.
Emerging market bonds have taken quite a hit in this correction. Is this the canary in the coal mine? I am becoming more skeptical of the whole EM theme. Who isn't bullish? Who is left to buy?
The Muni slaughter has gotten a lot of press but I suspect it is a tempest in a teapot.
If you're an emerging market bull, the pullback to the 50 day MA should be viewed as a buying opportunity.
Poland is an emerging market that doesn't attract a lot of press attention but the economy is performing well.
I know I've mentioned it a lot lately, but Japan still looks good. It is the most unloved market in Asia if not the world.
I'd venture to say that most people are underweight Europe but the Euro 350 is in a nice uptrend.
Oil and gas exploration stocks look good.
As do the drillers.....
Despite CSCO's big disappointment, networking shares remain in an uptrend.
Who likes financials? No one I know, which makes this chart even more interesting.