Citadel Securities' Scott Rubner Says Near-Term Equity Risk-Reward Is Deteriorating

According to CNBC, Citadel Securities head of equity and equity derivatives strategy Scott Rubner told clients that the bullish setup that drove the S&P 500 to records in August is fading, with September seasonality, the earnings calendar, buyback trends and retail trading patterns all pointing to a less favorable near-term risk-reward. He said the upside catalysts are becoming less obvious while downside catalysts are becoming more numerous, and noted that investors are entering a more macro event-heavy period while paying relatively little for protection. The S&P 500 hit an intraday all-time high of 7,816.70 this month after rising almost 7% from the end of July through the first week of August, then moved sideways to lower as the Cboe Volatility Index fell to 14.1 last week, its lowest level of the year. Rubner also said corporate buybacks are likely to slow as the blackout period for share repurchases accelerates around Sep. 12.