Sniffs of the resource tax being dampened down hit some trading...

Sniffs of the resource tax being dampened down hit some trading desks late yesterday afternoon, and momentum spilled over in the US. Commodity stocks did awfully well, supported by the currency breaking 85 cents (4 cents in 4 days). AFR and newswires confirmed that Canberra will be making an announcement regarding material tax changes.

Someone also raised the fact that 200m worth of portfolio buying (5%) of daily average volume went through in one order on the opening bell (STW.AU)

Got a couple of emails asking whats going on this side of the equator and I'm gobsmacked at the strength of the SPI overnight. Sure we're almost 3% higher but i would have thought the best of it was already factored in. Evidently someone knows more than I do.

Insider trading at its most respectable. Parties that have been in talks with parliament regarding this tax would have been rewarded handsomely for little snippets.

Power to them, information is king. I knew something was up by Wednesday, our markets was not behaving properly.

Lessons to learn here:- When something doesn't feel right, its best to liquidate and watch. 36 hours later and all the profits from picking the falls last week are gone.

So 1 full week of shorting, and after squaring off all positions I'm actually square. Up in HK and DAX, and down in XJO, currencies and SPX.

I have got no idea where its about to go right now, and the market has got me exactly where I don't want to be....tossing a coin.

As I write this, CNBC has just come out saying Krudd has "thrown cold water" on any thought that there will be any changes in the next 48 hours being announced. The response is the AUD/USD ticked higher by 15 bps. Hmmmm...

Well fundamentally I'm confused. Over to you chartists, I'll be guided by your views today.