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.

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Scorecard—What He Said:

• Cashin's Previous Appearance on CNBC (Sept. 17, 2010)

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More Market Opinion—Read and Decide:

• Markets Likely to See Upside Breakout: Art Hogan

• Stocks in 'Good Position' to Break Out: Top Portfolio Manager

• S&P to Reach 1,200 by Year-End: Chief Investor

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CNBC Data Pages:

• Dow 30 Stocks—In Real Time
• Oil, Gold, Natural Gas Prices Now
• Where's the US Dollar Today?

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CNBC Slideshows:

• The 8 Fastest Growing Jobs

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Monday's Top Dow Gainers (as of this writing):

Caterpillar

United Technologies

3M

DuPont

Walt Disney

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Disclosures:

No immediate information was available for Cashin or his firm.

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Disclaimer