The market rally over the last month or so is the "perfect scenario," Jack Bouroudjian, Index Futures Group CEO, said on Wednesday.
"I love it; I think it's very, very healthy," he told CNBC's "Power Lunch."
Until today's trading session, the Dow Jones industrial average was up nearly 9 percent in the last 30 days. Yet some of the stocks leading the rally are the ones that have been down most of the year. Some of these names include Diamond Offshore, United Rentals, Mattel and Transocean.
Some traders might call this a "low-quality rally."
Bouroudjian said this type of rally begins with short coverings, which is what the markets are witnessing now. Many professionals are short the stocks that have been beaten up all year long. This could be followed by "euphoria that caps off the rally and melt-up which might not happen until next year," he added.