RISK REWARD

JPM reports WED AM, earnings season is here again. Large Banks are shifted to LOAN to the GOV, not private sector, the risk / reward ratio is so titled in that way, loaning to gov by buying treasuries (using excess Fed Reserves = free) is too easy a proposition.

Bank earnings are still not reflective of current market conditions and they are not made to show losses of devalued mortgage loans. banks make up a large part of S&P 500 earnings. If earnings are not FACTUALLY REFLECTIVE of what is, instead of make believe GOV sanctioned fuzzy math.....add into HFT volume where stocks change hands for no fundamental reason, you have a stock market levitating on THIN AIR, IMHO. THEY have changed the game, using tools never used before, playing field so slanted......evidence 27 or so 90% volume days up or down volume since last April....this is insanity.

VIX dropped below 20....falling VIX is NOT Bearish as many think, a rising VIX IS......when the VIX falls TOO LOW.....it does show complacency, setting up the reversal....but not until the trend reverses to up

D