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Morgan Stanley Quantitative Warning: Momentum Collapse, Leveraged ETFs Massive Sell-off of U.S. Stocks, Few Retail Investors Taking Over!

Morgan Stanley Quantitative Warning: Momentum Collapse, Leveraged ETFs Massive Sell-off of U.S. Stocks, Few Retail Investors Taking Over!

``` Momentum consensus trades experienced a "collapse" style reversal on February 5. Morgan Stanley believes that the rapid widening of declines was caused by concentrated unwinding of crowded long positions combined with passive selling pressure from leveraged ETF rebalancing, while retail buying—which should have cushioned the fall—was
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