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Art Cashin: This Could Spark 'Stampede' of Short-Covering

Monday, 20 Sep 2010 | 10:56 AM ET

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.

Word on the Street
An early check on the markets with Art Cashin, of UBS, and Peter Costa, Empire Executions.

“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:

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CNBC Data Pages:

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CNBC Slideshows:

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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

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