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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: Quest who wrote (9037)	8/24/2000 12:42:41 PM
From: Tommy Dorsey	Read Replies (2) \| Respond to of 9427

I did in my original discussion. It is reverse. When volatility is low market has rallied up and is due for a correction, in general. Risk high for longs. When VIX is high market has declined and is due for some sort of bottom and probability is up prices and high risk for shorts. At a minimum for option players it is not good to write calls when VIX is low. Buying puts would be a better play to hedge. Also if you are right and the market does correct, declining, the VIX will rise and premium over intrinsic value in the put should expand. T