What's Wrong with This Picture?

The markets are doing funny things these days and when I get the feeling that somebody must be wrong big time when looking at key asset classes. Something is wrong with this picture:

Treasury yields are falling, which indicates a weaker economy ahead. The Euro is declining, which hints more weakness out of Europe. On the other side, Copper and US stocks have been rallying, indicating the exact opposite.

Whoever is on the wrong side will trigger a sharp move in the opposite direction. My feeling is that the bears are making a mistake. The Covestor Model Portfolio is positioned to the long side. Positive catalysts could be US earnings and China growth (positive catalyst China starting to ease rates this month). Market participants seem to favor these themes over the European debt topic. Keep an eye on FXI and commodities, which should outperform in this environment.