Stocks had another positive run Thursday, despite bouncing around a bit as financials lost ground, but Art Cashin, director of floor operations at UBS Financial Services, is staying cautious.
"I think you have to be careful," Cashin told CNBC Thursday.
Stocks may be moving higher, but both Treasurys and some currencies are hinting at deflation, he said.
"We have market with a real dichotomy here," Cashin said. "We’re going to find out who’s right. For now I’m staying cautious."
Cashin called Wednesday's stock market rally "quite impressive." The rise continued Thursday morning after initial jobless claimswere released. The S&P 500 got up to around 1070-1072, Cashin said, but it hit resistance there.
"An objective for the afternoon would be to see if they can take out this morning’s highs," he said. Before the close, the S&P 500 was trading at 1069.
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Scorecard—What He Said:
Disclosures:
No immediate information was available for Cashin or his firm.