Week Ahead: Take Profits, but Keep Running With the Bulls (Part 2)

"I think it's a sign of more to come. Even the IMF is talking about the need for a lower dollar," said Gilmore.

From 'Mad Money':

Avoid These Oil Stocks
Emerging markets have rallied, with Shanghai up 15 percent in July, South Korea up 12 percent, and Bombay up 8 percent, for example. Shanghai is up 87 percent year to date, while Bombay is up 62 percent. South Korea is up 38 percent.

Steve Bleiberg, president and chief investment officer of Legg Mason Global Asset Allocation, said this past week that he thinks the emerging markets have become overvalued, and on a relative basis, it's time to be neutral on U.S. equities. He said that European markets are now the ones to overweight, not because of a vigorous outlook, but because they are relatively undervalued. Bleiberg said he is underweight Japan as well. "I do think the outlook for Japan is not that good and it does not look good on valuation measures," he said.

The U.S. market could move up from neutral if the economy shows real signs of improvement. "I would say there's reasons to come out cautious, and that's why we came out neutral. There's signs the worst is over but there are long term reasons to believe we're not going back to very strong growth," he said.

The dollar index Friday was at 78.30, a low for the year. The dollar lost 1.6 percent against the euro in July to $1.4253, and lost 1.8 percent against the yen.

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Treasurys had a volatile month, as the government issued hundreds of billions in new notes and bills in July. The 10-year finished Friday with a yield of 3.501 percent, and the 2-year ended July with a yield of 1.111 percent. There are no auctions in the coming week.

Earnings Central
Energy, insurance, home builders, financials, consumer staples and media are among the industries reporting in the week ahead.
Humana , Clorox , Marathon Oi l, Lowe's , Tyson Foods , Anadarko Petroleum and Pulte Homes report Monday. On Tuesday, Archer Daniels Midland , D.R. Horton , Duke Energy , UBS , Kraft Foods and Electronic Arts report. Procter and Gamble , Cisco , Axa , Baker Hughes , Fortress investment , Polo Ralph Lauren , Transocean , Allstate , News Corp and Prudential are the major releases Wednesday. Thursday's reports include Comcast , DirecTV , Nasdaq , Sirius XM , Thomson Reuters , Unilever , CBS and Public Storage . Liberty ong> and Public Storage . Liberty Media and Edison International release numbers Friday.