News flash. Our presence in Iraq has done nothing to stem the infighting between the Sunni and Shiite. Palestinian factions threatening to advance their cause thru suicide bombers in Israel. Gasoline prices firmly over $3.00 at the pump. Inflation ahead of the Fed "comfort zone". GDP showing slower growth prospects. The dollar falling against all other major currencies. The DJIA making new highs. Seems like old times.
Watch dollar/yen at the 120 level. A major battle is brewing here and will give direction as to global liquidity and risk tolerance.