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Pros: S&P About To Wipeout Gains For Year?

For the second time in 2 days, a widely followed Wall Street pundit tells Fast Money to brace for a pullback.

This time it was the usually bullish Jeff Saut, Raymond James’ Chief Investment Strategist Managing Director who said to trade with caution.

”I’ve turned cautious last week after being pretty bullish since the end of June,” he says. “I think we’re pretty long in the tooth here. We may have put in the peak last week.”

And the pullback could hurt. Saut is forecasting as much as an 8% pull back – essentially wiping out gains for the year in about a month.

”I was on a conference call with PMs in Zurich and they’re worried about performance risk, bonus risk and job risk.”

Like we’ve heard from other strategists, Saut believes that the euphoria generated ahead of QE2 and the mid-term elections is unsustainable. Anthony Scaramucci of Skybridge shares that opinion.

"We've got to see real fundamental growth and real fundamental earnings to get the market much higher."

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And if you watch Fast Money regularly you remember that Andy Busch of BMO Capital Markets forecast a correction on Tuesday's broadcast.But the outlook isn't entirely doom and gloom. Almost everyone we’ve heard from says the pullback is meant to be bought.

(After the sell-off) ”I think we see under-invested portfolio managers chase returns into year’s end,” says Saut.

Joe Terranova couldn't agree more. "Be careful to call it a year in terms of moves next week," he says, "especially if we get a strong jobs report."

What do you think? We want to know!

Read More:

> Market Pros: Jolt Of Reality About To Trigger Sell-Off?






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Trader disclosure: On Oct. 27, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Scaramucci and SkyBridge Capital own (AAPL); Scaramucci and SkyBridge Capital own (BAC);Scaramucci and SkyBridge Capital own (XOM); Scaramucci and SkyBridge Capital own U.S. Dollars; Finerman owns (AAPL); Finerman & Finerman’s Firm owns (BAC); Finerman’s Firm owns (BKS); Finerman’s Firm owns (FLS); Finerman’s Firm owns (MSFT); Finerman’s Firm owns (POT) options; Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Pete Najarian owns (AKAM) call spread; Pete Najarian owns (BAC); Pete Najarian owns (POT) call spread; Terranova owns (APA), (AAPL), (AXP), (C), (CRM), (FCX), (GOOG), (GS), (IBM), (ISRG), (JPM), (MCD), (MDT), (MMM), (NBR), (NKE), (ORCL), (PEP), (PCP), (TBT), (TLT), (UPL), (VRTS), (XBI)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
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Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (JEF)
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Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (PPLT)
Accounts managed by Kanundrum Capital own (REE)
Accounts managed by Kanundrum Capital own (MCP)
Accounts managed by Kanundrum Capital own (POT)
Accounts managed by Kanundrum Capital own (ANDE)
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Accounts managed by Kanundrum Capital own (XHB)
Accounts managed by Kanundrum Capital own (HD)
Accounts managed by Kanundrum Capital own (AWI)

For Jan Van Eck
Van Eck is a principle in firm that is sponsoring the Rare Earth/Strategic Metals ETF

For Brent Thill
A member of Thill’s team owns (MSFT)
(MSFT) within the past 12 months has been an investment banking client of UBS
(MSFT) within the past 12 months has been a non-investment banking securities-related client of UBS
(MSFT) within the past 12 months has been a non-securities services client of UBS
UBS has received compensation from (MSFT) within the past 12 months

For Mike Khouw
Cantor Fitzgerald makes a market in (CSTR)
Cantor Fitzgerald is long (CSTR) calendar spreads

For Jeff Saut
***No Disclosures***

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