Going to WAR!!!
As I have continued saying, the international front is seeing a major policy objective being tested before the world community. While the United States and the western world continue to try and uphold the Nuclear Proliferation Treaty, Iran is trying to sink its teeth in the idea that it has a "right" to acquire nuclear weapons as "stated" in the treaty. The US made a smart move recently as US Secretary of State Condoleeza Rice suggested that the US will take part in negotiations IF Iran will discontinue and cease all uranium enrichment steps. IRAN BALKED!!! It pretty much told the world it doesn't care what they think and it will continue to seek its "gold".

As this is playing out before our eyes, we should think of what this might mean for the financial markets. The US is not going to "go-it-alone" on this one. If you don't think that we are consensus building right now, I am going to throw up! A build up is coming and this will put ALL MARKET PLAYERS ON THE DEFENSIVE! Coupled with talk that the economy is on the verge of a downtrend (again, you heard it here first), we will see more money flowing into "safe play" sectors and industries. The chart above shows the Staples sector about to rally.

To sum it up, Smart money knows that a international showdown is imminent. If Iran doesn't take the "carrots and sticks" concessions (click on title of this article to see what countries are saying) , we are heading towards a downward spiral...  ¶ 4:49:00 PM