If you think late day buying on Monday is a sign that bulls are back, you may be in for a rude awakening.We're hearing that hedge funds remain bearish - especially on financials. LocateStock.com CEO John Tabacco tells us, "the dominant view among hedge funds remains that financials will be one of the weakest sectors in the marketplace." And he should know. LocateStock.com is a company that finds stocks in the marketplace that hedge funds and high frequency traders are looking to short.
And Tabacco tells us beleaguered Citigroup may be particularly vulnerable. "(The shorts think) it looks very interesting as a downside play from here," says Tabacco.But this isn't just a Citi story. Hedge funds are making broad bets. They think nearly all US banks are overvalued.That concurs with comments made by Meredith Whitney on CNBC in which she said, "there's so much potentially game changing regulatory reform on deck... I would avoid financials at all costs."Despite the bearish outlook for US banks, hedge funds feel quite differently about banks located to the north. I’m not seeing any shorting in the Canadian banks such as Bank of Montreal and Royal Bank of Canada, adds Tabacco. What's the bottom line?Both Whitney and hedge funds clients of LocateStock.com suggest staying away from US banks.Page 1 of 5 | Next Page