All articles tagged with #september seasonality
Citadel Securities says the longer-term bullish stance remains, but the near-term risk/reward for equities is deteriorating as September seasonality, slower buybacks, and fewer obvious upside catalysts emerge. With the VIX at multi-month lows and options protection coming in cheaper, downside hedging is inexpensive even as macro-event risk rises.
Goldman Sachs' managing director Scott Rubner warns that there has been a clear shift in sentiment in the stock market, stating that "this is no longer a buy-the-dip market." Rubner highlights several market indicators that have him worried, including the S&P 500 closing below the bank's short-term commodity trading advisor threshold and a surge in options with extremely short lifespans. He also notes a significant drop in top book liquidity for S&P 500 e-mini futures. Rubner believes that investors have shifted from buying the dip to selling the rally, and he anticipates a gloomy September due to seasonality and low risk tolerance.