Brazilian Real is back to the top of its range. A breakout would probably be good news for Brazilian stocks.

The Aussie Dollar is at resistance. A breakout is probably dependent on what happens with commodity prices.

The Loonie faces the same fate.

And the commodity indices are at the downtrend line. One must assume that the trend will continue until it doesn't but if companies are upbeat about the outlook during earnings season GSG will probably break the downtrend.

Gold stocks pulled back right to the uptrend line but ran into a little resistance at the 50 day MA on the way back up. With QE II seemingly on the way, I would expect the uptrend to continue.

The double bottom in the ag commodities I noted last week worked like a charm. Now we face resistance at the 200 day MA.

Emerging market bonds broke out to new highs last week.

hyd

If states and municipalities are having such a tough time why isn't there evidence of it in the high yield muni market? Either someone is going to get burned or this is way overblown. I would note that while these entities don't have the ability to print money they do have the power to tax and rarely hesitate to use it.

Brazilian small caps have broken their downtrend and if the real breaks out they will likely outperform the large caps.

Last week was a good week for the Dow but don't get too excited yet. We haven't even broken the short term downtrend line yet. Patience....

Small caps have even more work to do than their larger brethren. If the economy is better than people think then small caps will probably outperform but that is a pretty big "if".

Are global financials making a double bottom? It sure looks that way....