Alert: adding two new positions.

Let's short SLX and go long AGA.

We've taken some lumps lately as the correction in commodities extended. But I suspect much of that backing and filling is out of the way and fundamentals will dominate price action again. I recommend adding two new positions.

Trade Essentials.

Here is what I suggest you consider doing now:

 

SLX (Last price: $40.54)

SELL SHORT shares of Market Vectors Steel ETF, symbol SLX, at the market. Then place an order to BUY-TO-COVER ALL your shares of Market Vectors Steel ETF, symbol SLX, at $44.53, STOP; this order is good till cancelled.

 

AGA (Last price: $14.80)

Buy shares of PowerShares DB Agriculture Double Short ETN, symbol AGA, at the market. Then place an order to SELL ALL your shares of PowerShares DB Agriculture Double Short ETN, symbol AGA, at $13.77, STOP; this order is good till cancelled.

[For those seeking a non-leveraged way to play AGA, I recommend selling short PowerShares DB Agriculture ETN, symbol DBA, with a stop loss above $30.40. Note: this alternative to AGA will not be tracked.]