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Art Cashin: '30% Chance of Sudden Reversal'

CNBC.com
Wednesday, 22 Jul 2009 | 12:19 PM ET

Amid choppy earnings, is the rally running out of steam?

Trader Talk With Art Cashin
Art Cashin, head of floor operations at UBS, has the buzz from the NYSE.

Art Cashin, director of floor operations at UBS Financial Services, offered CNBC his stock-market insights Wednesday.

Caterpillar on Tuesday had reported a sweet upside surprise of 50 cents per share — yet its shares are down. Why?

Cashin said that among some traders, "there is a concern" about the global construction giant's numbers being misleading.

"The Caterpillar results weren't quite the unalloyed joy they appeared to be. I think the company is a little stretched."

He said the firm was buoyed by Chinese stimulus money — and so faces an uncertain future.

Crunching such ostensibly false hope with the uncertainty of bank earnings, Cashin maintains his stance on the current rally: "We'll know by the end of this week" whether there will be a minor pullback or a hard correction.

"I'd say there was a 30 percent chance of a sudden reversal."

What do the "super-rally," Bill Gross, "head-and-shoulders" formation and Pres. Harry S Truman have in common? Cashin talks them up in the full interview.

More from Art Cashin:

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CNBC Slideshows:

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CNBC's Companies in the News:

Bank of America

General Electric*

Caterpillar

Wells Fargo

Morgan Stanley

*General Electric is the parent company of CNBC.

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Disclosures:

Disclosure information was not available for Cashin or his company.

Disclaimer

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