Everything is proceeding as I have foreseen — at least for the last couple of hours!

Strong earnings from Alcoa last night are giving the expected boost to equities and helping my short treasury position. The market shrugged off a downgrade of Portugal by Moody’s — no surprise — and a poor ZEW survey. I went long EUR/USD, which briefly dropped on the poor European news, this morning and shorted coffee — both have inched in my direction so far. More on those trades later. Once again I didn’t short gold, expecting it to rally with other risk assets — it has.

Short US Treasuries
Short Coffee