As US stocks are about to enter the final quarter of this year, Scott Rubner, head of stock and derivatives strategy at Castle Securities, “takes an increasingly constructive view” on the upcoming trend. He said that investors may experience a period of turbulence in the short term, but if the market weakens until the end of the month, they should use this opportunity to re-increase their holdings in the core sector of the market. Market sentiment towards artificial intelligence has rapidly turned negative, and related positions have declined. These trends should develop in the opposite direction starting in October, first in technology stocks, and then spread to the wider market. “This doesn't mean we think the weak market in September is over,” Rubner wrote in a report to clients. “Towards the end of the month, the supply and demand pattern is still unfavorable, the technical background still poses resistance to the stock market, and we still believe that the stock market may decline further in the next two weeks. But the market landscape has begun to change.” The S&P 500 index has fallen 1.8% so far this month, 3.2% below its mid-August high. 9 of the 11 sectors of the index fell in September. Rubner wrote that for the rest of the year, what is important is that this round of retracement “still shows sector rotation rather than a disorderly decline.”

As US stocks are about to enter the final quarter of this year, Scott Rubner, head of stock and derivatives strategy at Castle Securities, “takes an increasingly constructive view” on the upcoming trend. He said that investors may experience a period of turbulence in the short term, but if the market weakens until the end of the month, they should use this opportunity to re-increase their holdings in the core sector of the market. Market sentiment towards artificial intelligence has rapidly turned negative, and related positions have declined. These trends should develop in the opposite direction starting in October, first in technology stocks, and then spread to the wider market. “This doesn't mean we think the weak market in September is over,” Rubner wrote in a report to clients. “Towards the end of the month, the supply and demand pattern is still unfavorable, the technical background still poses resistance to the stock market, and we still believe that the stock market may decline further in the next two weeks. But the market landscape has begun to change.” The S&P 500 index has fallen 1.8% so far this month, 3.2% below its mid-August high. 9 of the 11 sectors of the index fell in September. Rubner wrote that for the rest of the year, what is important is that this round of retracement “still shows sector rotation rather than a disorderly decline.”