LocateStock.com is a company that finds stocks in the marketplace that hedge funds and high frequency traders are looking to short.



And CEO John Tabacco tells us last Thursday the number of requests to locate stocks to short jumped 50% above the normal 60-day average; with top requests listed below:

Most Requested Stocks To Short Last Week

Ambac

Citigroup

Bank of America

MBIA

Frontier Financial

Source: John Tabacco, Locatestock

So what's the smart money doing now?



With the market turning negative for the year on Friday, you'd think the smart money would be covering. But they're not.

”Now, they’re doubling down and shorting more,” says Tabacco, “with financials the most shorted again.”



You read that right. Despite the sharp declines this week the smart money is getting shorter.



”Our analytics suggests there’s a big event out there and there could be more downside,” says Tabacco.



What's the bottom line?



Next week could be a rough one. Better be on your toes !













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Trader disclosure: On May 7, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (MTL); Terranova Owns Gold; Terranova Owns (XCO), (AGU), (SWN), (PFE); Terranova Owns Crude Oil; Terranova Is Short (CMA); Karabell Owns (AAPL), (C), (GS), (CME); Karabell Owns (ATHR); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); jarian Owns (C) Calls; Najarian Owns (CLF) Call Spreads; Najarian Owns (FRX) Calls; Najarian Owns (MS); Najarian Owns (MTL) Preferred; Kelly Owns (FXE) Puts; Kelly Owns (FXB) Puts; Grasso Owns (NDAQ), (DYN), (LPX), (ASTM), (ABK), (BAC), (BGP), (C), (CVGI), (JPM), (NEM), (PRST), (PFE), (BA), (T), (CSCO), (X)



For Tim Seymour

Seygem Asset Management Owns (VIP)



For JoeTerranova

Terranova Works For (VRTS)

Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.

Virtus Investment Partners Owns More Than 1% Of (AMKR)

Virtus Investment Partners Owns More Than 1% Of (IGE)

Virtus Investment Partners Owns More Than 1% Of (DBV)

Virtus Investment Partners Owns More Than 1% Of (XLB)

Virtus Investment Partners Owns More Than 1% Of (XLV)

Virtus Investment Partners Owns More Than 1% Of (XLP)

Virtus Investment Partners Owns More Than 1% Of (XLY)

Virtus Investment Partners Owns More Than 1% Of (XLI)

Virtus Investment Partners Owns More Than 1% Of (XLU)

Virtus Investment Partners Owns More Than 1% Of (DRYS)



For Steve Grasso

Stuart Frankel And Its Partners Own (AMR)

Stuart Frankel And Its Partners Own (BAX)

Stuart Frankel And Its Partners Own (DYN)

Stuart Frankel And Its Partners Own (CUBA)

Stuart Frankel And Its Partners Own (DYN)

Stuart Frankel And Its Partners Own (GERN)

Stuart Frankel And Its Partners Own (HSPO)

Stuart Frankel And Its Partners Own (MERC)

Stuart Frankel And Its Partners Own (NWS.A)

Stuart Frankel And Its Partners Own (NYX)

Stuart Frankel And Its Partners Own (PALM)

Stuart Frankel And Its Partners Own (PDE)

Stuart Frankel And Its Partners Own (PFE)

Stuart Frankel And Its Partners Own (PRST)

Stuart Frankel And Its Partners Own (RDC)

Stuart Frankel And Its Partners Own (TLM)

Stuart Frankel And Its Partners Own (XRX)

Stuart Frankel And Its Partners Own (SDS)

Stuart Frankel And Its Partners Are Short (QQQQ)

Stuart Frankel And Its Partners Are Short (CL)

Stuart Frankel And Its Partners Are Short (AAPL)



For Brian Kelly

Kanundrum Capital Owns (TLT)

Kanundrum Capital Owns (GLD)

Kanundrum Capital Owns (GFI)

Kanundrum Capital Owns (AUY)

Kanundrum Capital Is Long Dollar

Kanundrum Capital Is Short Euro

Kanundrum Capital Is Short Yen

Kanundrum Capital Is Short Pound

Kanundrum Capital Is Short Franc

Kanundrum Capital Is Short (AA)

Kanundrum Capital Is Short (DE)

Kanundrum Capital Is Short (NUE)

Kanundrum Capital Is Short (XOM)

Kanundrum Capital Is Short (HES)



For Rich Repetto

Sandler O'Neill Expects To Receive/Seek Investment Banking Compensation From (CME), (ICE), (NDAQ), (NYX) In Next 3 Months

Sandler O'Neill Is A Market Maker In (CME), (NDAQ)

Sandler O'Neill Has Received Investment Banking Compensation From (NDAQ) In Past 12 Months

A Principal Of Sandler O'Neill Is A Director Of ((NDAQ)

(NDAQ) Was An Investment Banking Client Of Sandler O'Neill



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