The VIX is a measure of investor fear. When the VIX is moving higher off a bottom, traders are scared and you should be looking to go short. When the VIX is low, traders are bullish. In the wake of all the recent fed cuts and bailout news, the VIX has once again reached the lower levels. I am primarily a bear trader because stocks tend to drop much faster than tey climb. I hold a couple of short positions today, and am keeping tight stops on them in case the market tries to pop up.