MOST READ: Best ETFs for the Rest of '08

His top pick is the UltraShort Financials ProShares Fund(SKF Quote). The fund's aim is to return investors twice the inverse of the daily performance of the Dow Jones U.S. Financials index, which includes names such as Bank of America(BAC Quote), J.P. Morgan Chase(JPM Quote) and Citigroup(C Quote).

"I think the financial problems are going to continue," he says. "This ETF has demonstrated a lot of support around the $90 to $100 range. I think it can go above its March high."

The other two bearish funds that Hill likes over the next two quarters are the UltraShort Consumer Services ProShares Fund(SCC Quote) and the Short Dow30 ProShares Fund(DOG Quote).

The consumer-services index includes Wal-Mart Stores(WMT Quote), McDonald's(MCD Quote) and CVS Caremark(CVS Quote) among its top components.

"The sector got some hope with the economic stimulus package, but it might only prove to be like an afternoon caffeine shot," Hill says. "This fund has shown a lot of support around $80 to $85 and I think it is heading above $110 to $115."

As for his Short Dow30 call, Hill again points to the troubled credit markets. "The Dow contains six financial stocks" out of 30 companies total, he points out. "It's poised to go below its March lows."

Hill acknowledges that these funds aren't for the faint of heart.

"There is a lot of risk involved with these funds," he said. "The Fed could still throw money at the market to try to stimulate the financials. If you are going to go with one of these funds, pick a profit target and stick to it. Don't get greedy on the short side."