The volatility index - commonly known as the VIX - represents traders' expectations of volatility over the coming weeks, says Warren Firth at www.globalprimepartners.com.au.
Big down-moves in the S&P 500 index are typically accompanied by sharp rises in the VIX. If my bullish view of the outlook for US stocks is correct, the VIX - which is tradable via spread-betting firms - could fall from 13 to 6.9, creating a short-selling opportunity.
