“Dear David, Looking back at your (thus far accurate) estimate at the start of this year regarding a high probability of a "choppy and volatile" equity market, especially for the US, do you generally react to this (volatile) market condition by taking positions in the US quoted VIX in order to profit from this? Any comments on the current VIX chart? I assume this is the most directly correlated instrument to achieve this or would you use any other method of profiting from volatility?”

David Fuller's view

Thanks for an interesting email.  Well, after January Wall Street’s indices mostly became eerily consistent, until stalling at those roundophobia levels such as 2000 for the S&P 500. 

I think you are right in saying that the VIX (Volatility Index) (weekly & short-term line chart) is the most directly correlated instrument, and I have traded it on occasion over the decades.  However, it is tricky because costs can mount if you are early and VIX will turn on a metaphorical dime.  I did not have the time to watch it that closely, so I think it is a better trading instrument for those who are sitting on a trading desk all day and looking at intra-day charts.  I think VIX could easily trade higher while the market remains focused on increasing sanctions and concerns that Russia might move troops and tanks back into Ukraine on one of Putin’s phony peace / rescue missions.