LTR: Short squeeze coming for shorters - 2nd highest likelihood in all ASX, page-4219

Here's what Chat GPT thinks about looking at the depth after hours:

When you're looking at market sentiment after hours, especially with low liquidity, it can be misleading. Here's why:

1. **Low Liquidity**: After-hours trading typically has much lower volume compared to regular market hours. This means that even a small number of trades can cause significant price swings, which aren't necessarily reflective of the broader market sentiment.

2. **Misleading Price Movements**: Because of the low volume, prices can be more volatile after hours. A few buyers or sellers can move the price significantly, but that doesn't mean there's strong overall demand or supply.

3. **Lack of Institutional Activity**: Most large institutions and professional traders do the bulk of their trading during regular market hours when liquidity is higher. After-hours trades are often driven by retail investors, which can skew the price action.

4. **Limited Order Book**: The order book after hours is often thinner, meaning there are fewer buy and sell orders at each price level. This can lead to more significant gaps between bids and asks, resulting in less accurate price discovery.

So, while it might seem encouraging to see buyers lining up after hours, the reality is that the low liquidity and lack of participation from major players make it unreliable as an indicator of true market sentiment.