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Economists what are the implications of this
- Thread starter QuanChi
- Start date
BigBucnNole
Elite
BigBucnNole
Elite
Liquidity is the numerator and the ability to absorb market orders is the denominator. For that number to go down means the denominator is getting bigger... it's getting relatively easier to absorb large orders in the face of cash as the S&P general price goes up. Stocks getting more expensive and cash getting harder to find. Going back to circa 08 with companies sitting on cash?
Housing bubble had this problem post great recession where the prices kinda just sat there because the market velocity went flat.
Housing bubble had this problem post great recession where the prices kinda just sat there because the market velocity went flat.
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I don't know what that index is or means.
However, money was flowing nicely and there was plenty of liquidity in yesterdays sell off. There was no panic.
However, money was flowing nicely and there was plenty of liquidity in yesterdays sell off. There was no panic.
me
BigBucnNole
Elite
Normally looks like an EoY deal, but you can see covid delayed that. Pattern is anything to go on, it should flip.
BigBucnNole
Elite
That case with liquidity constant, they are making larger orders to close out year. S&P May play a roll why the peaks are slightly lower each time and the troughs just a bit deeper.
Looks like it’s doing what it’s supposed to.
QuanChi
Elite
The derivatives markets were very liquid yesterday and still are today. Average to large size trades are going up without much influence on the markets themselves. In times of illiquidity even the smallest trades will move markets.
There is plenty of depth out there right now. So far today its been a very boring, uneventful sell off. Not that much bank money moving around today or yesterday.
I posit that any big bank or hedgefund is already hedged for a downturn in the market. Any down turn will not be unexpected and should remain orderly.
Just my $.02 on what im seeing the last two days.
Now if an all out war breaks out then that changes everything quickly.
I don't want to speak for her personally, but I think she still doesn't understand
BigBucnNole
Elite
Market depth is where you can by lots of shit and the price doesn't change. For the first number, liquidity/ depth, to go down means it's getting easier to make large orders without price changing. This makes sense because the S&P price, the yellow line, is falling. Stocks are getting cheaper which means it's easier to buy more of them.
