Today 50-year veteran Art Cashin warned King World News that the shorts are now being squeezed in the stock market. Cashin, who is Director of Floor Operations at UBS, also warned that the stock market may now see a parabolic move to the upside.
Cashin: “What we are seeing (in the stock market) is people who are short are hurt, and people who are underinvested are being punished. You can almost feel the pain in the buying … So whether you call it, ‘Hold your nose and buy them,’ or ‘Have a gun to your head and buy them,’ that’s what’s been going on.”
Eric King: “Jeffrey Saut spoke to KWN about this being one of the greatest buying stampedes ever, saying he’s never seen anything like this in his 43 years.”
Cashin: “Well, I think he’s quite right on it. We’ve taken the market to areas that used to be considered extreme. The S&P is selling at a 25% premium to its 200 week moving average. That is very rarified air.
You can look at the number of stocks that have reached new 52 week highs, they are at a 35 year high going back into the 1980s. So you see things that ordinarily people would say, ‘The air is far too rarified here.’ Yet because of the concept that ‘I must buy the dip,’ they really don’t get a chance to dip.
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