Art Cashin: 'I'm a little surprised' at the uninhibited market rally

12.12.2016 / 20:25

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The market has been behaving in an abnormal way as it rallies toward record highs, trading expert Art Cashin told CNBC on Monday.

"I'm a little surprised that the equity rally has the legs that it had," Cashin, UBS director of floor operations at NYSE.

"When we had that big rally last Wednesday, the VIX behaved in a very unusual manner, and the few times that it has behaved like that before, we've had a pullback of some significance within three days," Cashin said. "[We] didn't even come close, [stocks] just kept rallying."

On Dec. 7 the VIX hit a low of 11.33, its lowest level since August, indicating that sentiment among investors had reached levels of "extreme greed".

That has typically led, as Cashin said, to a market slowdown and some sell-off. Instead, stocks continued to rally toward record highs.

Cashin said that not all of the stock indexes that have topped records should be grouped together, though, citing one specific index that may not be as affected by certain Trump policies.

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Art Cashin: 'I'm a little surprised' at the uninhibited market rally

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