The most significant equity leverage position reset in a decade: Morgan Stanley's report shows that global equity gross exposure deleveraging reached -7.8% in October, the largest deleveraging event since 2016, surpassing the declines in 2020, 2021, and 2016. Large-scale liquidation of leveraged bets indicates the market is undergoing a significant deleveraging process. Short-term volatility may remain high. The clearing of leveraged positions will amplify price volatility in tech and growth stocks until the pace of deleveraging slows. However, in the medium term, if the macroeconomic environment improves or market concerns about the cash flow of large tech stocks ease, the current significant reduction in positions creates room for future re-leveraging. Furthermore, after large-scale deleveraging, the "fuel" (leverage and crowded trades) in the system has been significantly reduced, lowering the risk of further forced liquidations. Historically, similar large-scale de-grossing events have often been followed by a rebound or position rebuilding. The process of clearing out crowded trades often provides better entry points. This post is sponsored by @bitget_zh, "Bitget US Stocks: Instant Entry, Smooth Trading"