Slightly Nervous Markets

Are the Markets nervous or just tired. After days of rallying in the Emerging Markets, stocks, bonds and currencies the market has retraced a bit today. Speaking with friends in the market we came to a conclusion that "It feels nervous but it is really going no where". The big dollar is clearly under pressure, and it should be. The numbers today point to Stagflation (higher prices with less jobs), and with the Fed still nervous about Inflation do not look for them to bail out this market anytime soon. Most economist are now looking for rate cuts after the summer (I think August). Number one trade is be long Euro. Still riding curves in Mexico (added yesterday and under water), Brazil and Argentina. Small short dollars in all also.

Anyone with an opinion on this market that I am missing please let me know.

Good Luck and Good Forex Trading.