Why Is The Market Rallying? UBS's Art Cashin Offers His Take

UBS's Art Cashin is no stranger to investors and is a frequent guest on CNBC. He offered his take on the ongoing stock market rally.

Cashin pointed out that U.S. stocks took the lead from European stocks which surged higher. He noted that European stocks gained during their trading session on Wednesday, and their rally is being led by a.) the continued belief that the United Kingdom will remain part of the European Union and b.) a temporary deal on Greece, which allows the country accept incremental debt is also a positive.

Meanwhile, API data, which showed a 5.1-million-barrel draw, resulted in a "spark" in oil prices, subsequently trading higher.

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In U.S. trading, Cashin noted, "[A]lot of the buying is concentrated in the laggards," which indicates short sellers are likely covering their positions. He also expressed his doubt that a pickup in short covering activity could result in a larger buying trend.

Looking forward to the remainder of the week, Cashin suggested volume in the market will begin to shrink on Thursday as the long weekend approaches.

Finally, Cashin discussed what investors should look out for on Thursday when six new companies will see their shares trade on the stock market for the first time.

"What you want to see is a small premium bid and after they open for that bid to hold," he said. "There haven't been a lot of IPOs around, so there should be an appetite for them."