Not what you have, what the dealer has is what counts.
"i use various indices for initiating the LS option and it varies according to the count and the dealer up card and of course my hand"
Yes.
"i have recently been thinking that maybe i should initiate the option according to the count and not what the dealer shows as his up card"
Although the count may be such that you surrender 14 vs T, I don't think you can ever justify surrender on 14 vs 6. The dealer up card is one of the 3 factors (up card, your hand, the count) on the correct play for any hand. Elimination of one of these factors would be a mistake.
"if there is a higher prability that i will bust by hitting, at that point, what should it matter -what- the dealer has up? "
Generally, if the count is such that you shouldn't surrender, the option is stand and hope the dealer busts. Sometimes in a low count, it is better to hit and try to win the hand, rather than an automatic 1/2 bet loss.
The dealer up card is a determining factor in dealer bust probability and final hand total. Ignore at your own risk.