Art Cashin says Interim Bottom

Market Bottom In Place says Art Cashin

A number of people are saying that we have now seen a bottom (short term at least) in the markets and we could get a few weeks or months of rises. Jim Cramer for one, yesterday on CNBC.

Today on CNBC Art Cashin, who talks a lot of sense, has just said there is a good possibility that we are at an interim bottom. His reasoning is that yesterday was the third trading day after events on Tuesday and as yesterday was a positive day this indicates that bulls have regained control.

Art says that this looks like an interim bottom caused by the financial crisis although he still thinks that further out in the year there may be a lower low caused by the recession. These are the weakest shorts he has seen in 45 years – if commodities and the dollar stabilize shorts are cleaned up. We need a period of calm to the disadvantage of the shorts and an end to the rumour mongers.

All in all he was positive on the markets for the next few weeks/months.