xjo weekend zoomba lounge, page-194

MoolaManic:

Also, just to be a little pedantic and to correct you, because you don't want to be trading with the wrong information:-

"Having said that, the Volatility index's eg VIX are a reflection of the number of puts in the market ie a higher number means elevated levels of puts (expecting the market to go down)"

That is not correct. The VIX is an index which measures the level of volatility for the next 30 days in the market (SPX options). Original it used the implied volatility (Vega) of 8 call/put options on the SPX. Now I think it has about 75.

Another key note.

The VIX specifically relates to the S&P 500. If you are focused on the Dow or the Nasdaq, the volatility tickers for these on Bloomberg are VXD and VXN.

In short Moola, don't pay attention whatever you hear and read in the news. There's a deeper explanation to it all.