Stocks will continue to be “very volatile and shaky,”directed by moves in the European markets, until at least Thursday when President Obama speaks on the economy and jobs, according to Art Cashin, director of floor operations at UBS Financial Services.
“With European markets [closed for the day], we’ve managed to cut today’s losses in half, but I wouldn’t gamble on this,” Cashin told CNBC. “Europe is still driving this bus.”
Cashin called the recent market moves as an “ostrich rally”: “If I can’t see it, it can’t hurt me.”
Cashin described the phenomenon in one of his notes earlier this year:
“Simply put, if there is chaos on the screen, the stock market frets and often falls. If, a day or so later, the screen is filled with talking heads, the market rebounds (even though the talking heads happen to be talking about on-going chaos in the streets). In essence—if I can’t see it, it can’t hurt me.”
CNBC Data Pages:
Tuesday's Top Dow Laggards:
Bank of America
No immediate information was available for Cashin or his firm.