Waiting on Commodities bounce or Market Capitualtion...

Currently holding a few shorts and still waiting on my longs...

I am still short some RBCAA from $25.42 off the Citron news. I have locked in some gains but have been holding on just in case that market capitulation finally hits on Monday or Tuesday.

Also short a small amount of TNH @ 79.83, FLS @ 48.64, and MMP @ 31.94. I bought the first two positions when they broke down out of bearish wedges on increasing volume. I am looking to take gains on these positions on a gap down on Monday. MMP is your usual light volume bounce short to resistance near the 50 DMA. I'm light here and will give this position a little room to work. I will obviously cut back on a close over the 50 dma.

I was frustrated Friday when the market was halted and IMO prevented the capitulation bottom most traders have been waiting for. I am still hoping for this action to come Monday but am not overly optimistic. I would love to see a gap down that was followed by frantic selling ending in a thousand down day on the DOW that would lead to a trade-able bottom.

For now my favorites continue to be in the commodity sector

Shippers: EXM, DRYS

Steel: STLD, NUE on a pullback

Oil/Gas: PXP and CHK on light vol. pullbacks

Metals plays with good dividend ratios: FCX, AA

Infrastructure: (haven't bottomed yet but still like growth potential) FWLT, SGR

I don't want to give entry points yet, given that there is so much uncertainty going into tomorrow. If the capitulation does come then I will averaging in slow with these the top of my priority.

I have held off on all of them up til now. I continue to think the shippers are very oversold and looking for a bounce. I’m not much of a fundamental investor but don't understand why have the railroads held up so well and showed relative strength when the shippers have been absolutely destroyed. The only conclusion I have been able to come to is that the rails have more pricing power as dry ship rates have been demolished. DRYS trading with a P/E of .7? Anyway, can’t help to think that they will rebound. EXM being my favorite, chart-wise, but watching the usual suspects DRYS, ESEA, PRGN, etc. Eager to see how tomorrow opens…

-JAX