What a difference a day makes! Or rather I should say Dividends make. As the market goes ex div, the froth is fast disappearing. With slightly negative leads from ‘Zombieland’ and the US especially in commodity markets, the market was always going to find it hard going today but BHP and others going ex, ensured a softer start and things just got worse as profit takers moved in especially in some of the high flying stocks from last week. News out of China at lunchtime of a tightening of the mortgage market didn’t help matters at all and turned into a rout, with the index skidding to a big loss of over 75 points. Seems like this is a normal Monday event these days. Westpac Banking (A$30.36, -2.2%), Australia and New Zealand Banking Group (A$28.36, -0.9%), National Australia Bank (A$30.10, -1.0%) and Commonwealth Bank of Australia (A$67.12, -1.1%) led the way in financials with the big end of Resource land also in trouble. BHP Billiton (A$35.57, -3.4%) lost twice their div and RIO Tinto (A$63.65, -3.7%) had the stuffing knocked out of it as did Woodside Petroleum (A$36.51, -1.7%). Other leaders to have the hot air escape included Woolworths (A$34.08, -2.2%) and Wesfarmers (A$41.09, -1.2%) as well as Telstra (A$4.52, -0.2%). Making gains today were Sirius Resources (A$3.15, +10.53%) following on from their stunning results last week, as did Southern Cross Media Group (A$1.575, +3.3%) on news in the press this morning that Channel Nine may be on the verge of doing a deal with them. The Media space is certainly hotting up in an election year with Ten Network (A$0.36, unch) pushing ahead early before succumbing to the red pen. Fairfax Media (A$0.57, unch) held firm as they launched their printed papers in a new tabloid format and changed their web sites. Once again the doghouse was littered with the bones of resource companies which have become the new favourite short of the long/short hedge funds. Of course the falling commodity prices are certainly not helping their cause. St Barbara (A$1.10, -10.6%) was the worse, Oz Minerals (A$5.89, -6.4%) not far behind and Panaust (A$2.59, -6.2%) Paladin Energy Ltd (A$1.09, -6.0%) and Karoon Gas Australia (A$6.74, -4.7%) all faring badly.

Volume was not too shabby today considering it was a Monday and it takes a few days to get going. Looks like the market is starting it long awaited pullback as dividends and China connive to produce the perfect storm. This has been the first day for a while when we have not seen the bargain hunters in and picking up cheap stock. Instead it just got worse. If you missed the run, patience may be rewarded, Grasshopper!

Stocks in the News

Few bits of economic news today with ANZ job ads improving. In other eco data out, company operating profits slipped 1 per cent in the fourth quarter, as expected and a bit better than the 2.9 per cent fall in the previous quarter. Whilst Building approval numbers always a volatile indicator were worse than expected at building approval numbers at a fall of 2.4% instead of the rise of 2.8% that the economists were hoping for.And I always use the word hope for economists who are hardly ever in the right ballpark with these things.

Sad news today that James Strong has died. Former Chairman of QAN and wearer of bow ties. Sad. Also in corporate news Nick Curtis is moving on from the company he founded Lynas (A$0.59, unch).

In house stocks today, New Standard Energy (A$0.195, -7.1%) and NXS# suffered badly on some updates on the Merlinleigh project for NSE and an Insto selling out in NXS.

In other stocks we follow in the mining services sector Als (A$11.30, -2.6%), Ausdrill (A$2.92, -4.9%), Carbon Conscious Limited (A$0.044, -8.33%), Cardno (A$6.60, -3.6%), Macmahon (A$0.30, -3.2%) all got a dose of reality. Other resource stocks also suffered a similar fate with Noble Mineral Resources (A$0.057, -8.1%), Fortescue Metals Group Ltd (A$4.37, -3.5%) and Sihayo Gold (A$0.10, -4.8%) having the knife taken to them.

Tomorrow’s News Today

‘Zombieland’ Finance ministers are due to meet with the Cyprus bailout and the Italian elections top of the agenda. Also news from France that the last taxpayer has left the country and gone to live in London was greeted with a typical shrug of the shoulders. C’est la vie, n’est pas!

Chinese shares have been hit hard after Beijing ordered more measures to cool property prices and after growth in the nation’s services industries slowed. The Shanghai Composite index is down 2.9 per cent, while the CSI 300 index has lost 3.8 per cent. Data showed growth in China’s increasingly important services sector expanded at its slowest pace in five months in February, reinforcing the view that the recovery in the world’s second-largest economy remains modest. China’s factory growth also cooled to multi-month lows in February.

Big night for the finance industry as the ABC’s Four Corners program is about to expose more dodgy financial dealing..this time in the Mortgage market but certainly doesn’t help the Mums and Dads feel comfortable about the capital markets and investing anymore, explains why there is still $588bn on deposit in the Nation’s banks.

Take note Gerry Harvey… NAB’s latest online retail sales Index has been released today showing online sales have grown 27 per cent to total $13 billion for the 12 months to January 2013.

RBA meeting tomorrow but expect no move on rates. The gurus there have finally woken up to the damage that the high Aussie Dollar is doing to the economy or what’s left of it and have been talking it down as much as they can… This will continue before another rate cut in April potentially.

And new man at the Bank of Japan has pledged to do whatever is needed to end 15 years of deflation. Gentlemen start your printing presses! Haruhiko Kuroda you are da man!

Expect a small rally tomorrow if the world does not fall apart tonight. Banks and other defensives will be on the shopping list but looks like 5100 is the short term top. Chart is shaping up suspiciously as a double top the way I read it anyway!