Art Cashin: This Could Spark 'Stampede' of Short-Covering
Stocks opened higher and climbed Monday, as investors awaited President Obama's comments on the economy and the Federal Reserve's policy meeting on Tuesday. Will stocks see a fourth week of gains? Art Cashin, director of floor operations at UBS financial services, discussed his outlook.
“I think you’ve got a 30 percent shot [at a breakout to the upside]—the critical area is S&P 1,130 to 1,133,” Cashin told CNBC.
“If they blow out through that, we can create an algorithmic stampede of short-covering.”
But Cashin warned that this week could be "highly volatile" — though his reasoning might have been tongue-in-cheek:
“Wednesday is the autumnal equinox and Wall Street folklore says that’s one of the most critical days of the year for market drama,” he said.
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Sept. 17, 2010)
More Market Opinion—Read and Decide:
CNBC Data Pages:
Monday's Top Dow Gainers (as of this writing):
No immediate information was available for Cashin or his firm.