While markets are up in dollar terms today, they are actually down in Euro terms.

The euro is up almost 1.3% against the dollar, trumping the 0.5% dollar-term-gains of the S&P500 and Nasdaq.

Markets are also down by many commodity measures of value. Commodities across the board are generally strong right now, with oil up nearly 5%.

Gold nevertheless appears to be struggling to retake the $1,000 level.

Right now it looks like the better inflation hedge might be commodities-driven large caps such as BHP Billiton (BHP) and Schlumberger (SLB), who are up 4.3% and 3.6% respectively. Their industries are staying well ahead of dollar weakness and leading the markets higher.