It’s beginning to feel a bit like Groundhog Day with the same themes emerging as clients switch from banks and Telstra (A$4.26, -0.5%) to resource stocks. At the moment it is confined to the large caps but that will filter down in time. The better numbers coming out from China in recent months have given the resource bulls some good reasons to embrace BHP Billiton (A$36.00, +0.7%) and Rio Tinto (A$62.75, +0.9%) with good copper exposure and of course Iron Ore. The other sector that has been on the move is the bombed out industrials with even things like Fairfax Media (A$0.54, +11.3%) starting to find some more friends as have other media stocks like Seven West Media (A$1.64, +3.1%). Well, all except Ten Network (A$0.26, unch) that is. I have been saying for some time there is nothing wrong with Fairfax Media (A$0.54, +11.3%) business they just have an issue with how to get people to pay for their content. It is an industry problem but as the internet matures people will pay for quality content and they are in the box seat to provide it. There are problems ahead for them but we may have seen the worse.

Another defensives are suffering as punters embrace the dark side. Woolworths (A$29.53, -1.0%) and Wesfarmers (A$35.85, -1.2%) falling with good gains in other Okie stocks like Ainsworth Game (A$2.55, +5.37%) on a profit guidance announcement of a 49% increase to around $28m..There are a few signs of life in the retail sector which is hardly surprising given its Xmas. Harvey Norman (A$1.89, +3.6%) had a good day although news from the new Chairman of Myer (A$2.18, unch) that they will be spending $30m on their online strategy this year and will be on top of it by Xmas 2013 were a worry!

There were a few AGMs around today with Westpac (A$25.98, +0.3%) suggesting that things are still tough and likely to remain so. Of course it means that the Board and management must be paid huge amounts to navigate through this maelstrom. At the NAB (A$24.60, -0.2%) AGM a whopping 21% of shareholders voted against the remuneration report .This is certainly a trend we have seen in the recent spate of AGMs.

Volume has been picking up in the last few days which is encouraging, let’s hope it lasts.

Stocks in the news

Buru Energy (A$2.67, -1.48%) had a large seller cleared out of the market today with a line of 1m being crossed although the stock seems to be struggling to recover its recent losses.

In other BBY stocks Linc Energy (A$1.035, -20.4%) gave back some of their recent stellar gains as they came crashing back today. They have run from 70c to 1.30 in a week so it’s hardly surprising really.

Company favorite G8 Education (A$1.50, +3.8%) continued to push ahead as well as did APN News & Media (A$0.315, +10.5%). Whilst GrainCorp (A$12.30, -0.6%) knocked back the latest offer from the Yanks as inadequate and brokers have suggested a $13 price is the way to go. Obviously they would be this may go hostile at some stage.

Iluka Resources (A$8.16, -5.6%) was another weak spot today following downgrades from brokers on the state of the Zircon market. And Lynas (A$0.585, -2.5%) continued to be friendless unfortunately.

Bank of Queensland (A$7.16, -1.0%) Bank of Queensland is optimistic about a recovery in its home state’s housing market and increasing earnings. Chairman Neil Summerson told shareholders at the bank’s annual general meeting today that the Queensland economy had stabilised but remained subdued.

The gas boom is not confined to Australia’s northern states, with BHP Billiton and ExxonMobil confirming they will spend $1 billion on gas infrastructure attached to their existing Bass Strait operations.

The latest Australian Chamber of Commerce and Industry (ACCI)-Westpac industrial trends survey for the December quarter showed that while overall activity was reasonably stable, profit expectations, investment, selling prices and employment were all under pressure.

And as things go from bad to worse for ‘Big Nath’ as the Tax office moves to wind up the Newcastle Jets and the Knights. Would have thought they were easy to wind up, just tell them they are useless!

EMR Capital, a resources-focused private equity fund targeting investment from Asian capital markets, has secured its first seed capital to pour into resources projects in Australia and overseas. The $100 million initial investment, from an undisclosed “Asia-based financial institution”, will feed into an eventual $300 million fund, as EMR seeks to be at the front end of a growing trend of Australian funds seeking capital from China and other Asian countries.

Tomorrow’s News Today

The shorts continue to be squeezed as we head into the December options expiry and a resolution to the Fiscal Bluff. Of course the big date to get through is the end of the World date Mayan style .It’s a bit like ‘Gangnam ‘style but probably not as popular.21st of December is the date. Have a feeling that it will come and go without so much as a bang!

The move from defense to offence will continue. One thing that stands out from moves like we have seen in Linc Energy (A$1.035, -20.4%) is the thin volumes make it really tough for the shorts to cover quickly if they want. Exaggerated moves should be used as trading opportunities!

The markets will continue their quiet climb into the New Year and bouts of optimism and pessimism will abound in the US but they will kick the can down the road. They have very little choice really. The Debt ceiling is fast approaching!