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Get Your Trade On Track

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U.S. corn futures fell over 3 percent to their lowest levels in two weeks on Tuesday, as a $4 plunge in oil prices pushed the dollar to 2008 highs, triggering a broad sell-off in commodities.

The sell-off in turn hurt shares of major U.S. coal producers on Tuesday sending shares of Arch Coal, Peabody Energy and Consol Energy all lower.

"It's just (part of) the overall commodities sell-off. There's just tremendous volatility in this space right now," said Longbow Research analyst David MacGregor.

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What’s the trade?

"Tuesday’s commodities trading was all about hedge funds that were long and now having problems,” explains Pete Najarian on CNBC’s Closing Bell. “They’re being forced to take profits and unwind the trade pushing commodity stocks to the downside in a hurry.”

”As a result there could be a bounce,” he adds. “However, I think railroads are probably the best way to play commodities. I’d buy railroads on any pullback.

(In the past Najarian has recommended Burlington Northern as a name he likes in the space because Warren Buffett is a shareholder.)

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