View: 6 sept29.PNG
6 sept29.PNG
Look how liquidity can evaporate rapidly!
And it wasn't a big down move
The bid can litterally disappear instantly if a convergence of bad catalysts happens (bad unexpected news + a big support breaking at the same time for example)
You can have sub 1% rates and central banks that are at the opposite of being market neutral, that doesn't change the fact that stocks are risky investments and risk always concretize on a long enough timeline.
And curiously, it always happens when everybody think they can take the exit door before or during the "event"
I guess a lot of people don't understand liquidity and how HFT is creating it only "one way"
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