The major indexes ended trading up Monday. How should you read it?
Art Cashin, director of floor operations at UBS Financial Services, joined CNBC Monday afternoon to offer his stock-market outlook.
Watching the traders, Cashin noted, "They're not doing it in big volume."
So why the late-day surge? He explained it thus:
"A lot of portfolio managers sat out the rally. Now, the report card is going to come in on July 1: 'What did you have in your portfolio?'"
Therefore, Cashin said, managers are hurriedly "holding their noses and buying."
So what's ahead? Cashin turned to one of his favorite rules of thumb, the mythical "Old Trader's Almanac":
"Rallies in bear markets tend to be somewhat short, but certainly very sharp — and they die on low volume."
"And the last two weeks have been very low volume," he added ominously.
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CNBC's Companies in the News:
Bank of America
Disclosure information was not available for Cashin or his company.