The market seems to be setting up perfectly for the capitulation bottom I have mentioned in previous posts. Commodities attempted an early market bounce but ultimately ran out of steam and saw some heavy selling pressure. Market players again showed their complete lack of confidence in anything long as the market sold off hard in the final half hour of trade.

I didn't do much today, primarily just watching. I continue to let my open shorts to run but will look to cover portions of these trades on a gap down tomorrow. I am already well in the money on these trades and don't want too get too greedy here. I have huge gains in RBCAA and have already taken some off. Volume has died down and lower intraday low did not occur today which would usually have lead me to take all my gains. I think the main reason this stock hasn't collapsed further is that the imminent rate cut by the fed is providing some support. Ultimately, I think there will be a sell the news reaction and with not many buyers under it, RBCAA could be set for another sharp fall. I want to be there when it happens.

On the long scenario, I continue to watch my favorites which I posted yesterday. Again I look to average in slowly but won't be afraid to get aggressive if the tides turn. I really like the looks of EXM and STLD. Notice how they have fallen on very light volume the last couple of days after a few big accumulation bars. If capitulation hits these will be the first I look to buy.