Wednesday -- Oil, Kuroda, JGBs & ABCs

S&P E-mini Futures:
Found support overnight and built gains on crude oil hopium.

News:
For me, comments from the BOJ's Kuroda dwarf the news flow. The guy truly scares me.

• KURODA: POSSIBLE TO CUT NEGATIVE RATE FURTHER IF NEEDED
• KURODA: BOJ NEEDS TO DEVISE NEW TOOLS IF MEASURES INSUFFICIENT
• KURODA: BOJ WILL DO WHATEVER IT CAN TO REACH PRICE TARGET

Desperation. And a clue just how weird it may get here and Europe and Asia (which both had rough sledding so far). New tools . . . wtf. Just call it State-sanctioned stealing.

There was also this from Nikkei --

Sales to individuals to be called off over negative yields

"The Ministry of Finance is expected to announce Wednesday the first-ever decision to call off sales of 10-year JGBs."

Crazy.

Interestingly, a way for Japanese individuals, municipalities, and corporations to embrace more debt would be to buy US treasuries. Maybe that's why treasuries have gone straight up for the last month. Maybe the BOJ is buying, too.

If so, there's a catch...

FX:
...it's the USD. More dollar-denominated debt puts a potential bid beneath the dollar when things get weird (just what the global over-debted doesn't want). And things are getting weird fast.

JPY & CHF sensing the weirdness yet again. AUD & CAD up on oil hopes.

Treasuries:
Up here too, not backing off materially.

Energy:
WTI crude term structure still an abject mess, so not buying the hope. NG weak again.

Metals:
Where's the ripping bid in gold -- not seeing volume even though it continues to build on gains as silver and copper do as well.

S&P Outlook:
Currently failing a rally.

1872.70 still in the crosshairs, but if the market wants, it could form a more complex ABC that could include a break of 72.70 and still reach higher.

An alternative is that an ABC has concluded where "A" is shown and new lows are on tap.

For the market to show that the current price action is not a bounce, an epic rally needs to occur...soon.