Mixed economic data from Japan...

1. Industrial output drop 2%, compare to concesus of less than 1% drop. This contradicts with the earlier strong GDP and export numbers (last quarter). All thouse exporters drop today along with the stronger yet and weak industrial numbers. Agian, this show that you can get nowhere with the economic numbers in Japan, it is simply a random distribution around 0.

2. I think the market may have bottomed in the short term, but will see more downside in the medium term. They drop will be driven by more and more defaults from corporates (they need to refinance eventually, and many will fail) and another round of carry trade unwind. I think it may be wise to do a "dated spread": Buy ST call and Sell LT call on the index. 1m /3m can be good.

3. Last night bought 16 HK and 386 HK in a virtual trading account, doing pretty well today :) .
today HK is very strong, start in negative, but quickly got pushed up to +300. I make no change to my view and expect HSI to finnish strongly tomorrow.

4. Goldman launched warrents for Nintendo and Sony in Hong Kong!!! Buy Buy Buy!! no brainer!