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To: SouthFloridaGuy who wrote (96834)	4/20/2001 1:35:34 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

on the contrary...careful with VIX interpretation. a VIX that is stubborn during a rally and clings to high levels is bearish, not bullish. normally the VIX SHOULD decline in a rally, as fear unwinds. the fact that it doesn't shows that put sellers and option MMs are wary of the rally (they are generally the 'smart money'. note, it's certainly not DEMAND for puts keeping it high, since the p/c ratios remain very low). only when complacency is universal and the VIX drops to extremely low levels (say below 20) as a steady low volatility rally nears its peak is a low VIX bearish (e.g. July '98). in late March last year before the NAZ crashed the VIX signaled the BK by RISING ahead of it in spite of the market continuing higher.