A major bubble in the market just burst for the bears, according to one Wall Street strategist.
On CNBC's "Fast Money" Wednesday, UBS' Julian Emanuel said that better-than-expected U.S. data and a stable Chinese yuan has led to a popping of the global "negativity bubble," and that could drive equities significantly higher in March.
"Essentially, people were defensively positioned coming in to 2016," explained Emanuel, who serves as executive director for U.S. equity and derivatives strategy at UBS. "Then, all of a sudden, the numbers started to get a little bit better."
Positive U.S. data includes January overall retail sales, which rose 0.2 percent, while GDP in the fourth quarter of 2015 grew at an annualized rate of 1 percent. Additionally, the U.S. dollar hit a new one-month high on Tuesday.
Emanuel also cited jobs data as evidence that the U.S. will not head into recession. Despite slight rises in February, U.S. initial jobless claims remain near cycle lows at 272,000 while unemployment is at 4.9 percent, the lowest level since 2008. While UBS contends that a spike to 350,000 jobless claims would trigger alarm bells, the firm says that no such spike seems to be in sight. Historically, spikes have occurred during recessions dating back to 1991, 2001 and 2009.