Chicago Board Options Exchange’s volatility index (VIX) jumped to its highest level yesterday since Sept. 3 as stocks slipped lower for the third day in a row. I love higher VIX, that’s when my option trades are more profitable. This may not be the appropriate statement given the current market condition! But, that’s the fact. I buy stocks and sell options when the VIX hits high. When everyone is panicked that’s when you should go for your favorite stocks and options. VIX is around 28.22, well above the recent trend.

Numbers from Institute for Supply Management (ISM) yesterday spooked many investors and caused huge drop in all indexes. ISM , a group of purchasing managers, reported that its index of manufacturing activity was at 52.6 in September, down from 52.9 a month earlier but still reflecting an expansion for the second consecutive month. Any reading above 50 indicates growth in manufacturing activity; below 50 is contraction. We are still in growth mode, not as much growth as you would expect, but still the manufacturing industry is picking up strength.

On the other side, today’s employment numbers are bad. This is going to be bad for many more months to come until businesses gain confidence. I am not going to turn negative on the market because of these numbers. I personally know how hard to hire right people at this time. Unemployment situation will turn around, not sure when. I am continuing to buy good stocks at better prices. More fear in the market is good for prudent investors.

Related Link: Fear Factor