A.I.M. Users Bulletin Board

[lionhead0]

Hi Gujralh; RE Highest Value of VLAP in 2000 bubble.

Looking at the V/L logarithmic chart from 1992 thru 2008, the highest VLAP in 2000 was 100 that occured roughly during the first big dip in the index during Q1. At the bubble top, the VLAP registered approximately 75. During the remainder of year 2000, the VLAP ranged between 75 thru 90.

It appears V/L had caught a dose of the bubble fever as the VLAP trended higher from 1999 thru 2000. Using it as a market risk/timing indicator during times of mania is problematic.

Tim