So is Anthony Scaramuuci of Skybridge. "As far as I can tell most money mangers are looking for another 5-10% decline on the S&P," Scaramucci says.
"Most hedge funds are in a defensive position," he adds. "Or they're on the sidelines."
What's the bottom line?
Hedge fund interest in shorting these stocks suggests the market could still turn down, and turn down sharply, Tabacco concludes.
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Trader disclosure: On May 25, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (FTO), (IPSU), (RSX), (PFE), (STLD), (TER), (YHOO), (AXP), (BMO), (BBY), (DIS), (XCO), (BTU), (SWN), (GLD); Terranova Owns Gold; Cortes Owns (FCX), (FXI), (GS); Scott Nations Is Long (SPY); Edwards Owns (VXX); Tomasulo owns VIX calls; Tomasulo owns (VXX); Tomasulo owns (PCLN) calls; Tomasulo owns (V) calls; Tomasulo owns Gold spot futures; Tomasulo owns Euros
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