Citadel Securities: U.S. Stocks Will Rally After Midterm Elections

Scott Rubner, Head of Equity and Equity Derivatives Strategy at Citadel Securities, said that with the midterm elections removing a major source of uncertainty, U.S. stocks are poised for a year-end rally. The path of least resistance for U.S. equities into year-end is higher, citing light positioning, the reopening of corporate share buybacks, and historically favorable post-midterm seasonality. Retail investors have been net buyers of U.S. stocks for 22 consecutive trading days, and systematic funds may provide another major source of support, as their U.S. equity positioning has fallen to its lowest level since March 31.