The Obama administration has agreed to scale back requirements for new anticollision technology on freight trains, known as Positive Train Control (PTC). This stands to benefit companies such as CSX (CSX), Union Pacific (UNP), Norfolk Southern (NSE) and Berkshire Hathaway's (BRK.A) Burlington Northern Santa Fe.

PTC technology will automatically stop the train if a conductor misses its stop signal, coming in light of a 2008 train collision which killed 25 people.

This could possibly add 25% to CSX's free cash flow, which at these levels would make CSX and other rail companies undervalued by these metrics.

Jason is a co-founder of Benzinga.com.

Oil-related stocks have been significantly beaten down in the wake of the BP (BP) oil spill in the Gulf of Mexico. The market could be suggesting, however, that now may be the time to jump back into this sector.

Frankly, the energy complex as a whole looks like the most compelling segment of the stock market right now, although it does come with significant risk as many traders and investors have already been burned trying to pick a bottom over the last few months.

In order to mitigate risk in this sector, investors could consider putting together their own oil-related ETF: Determine the amount of capital that you want to commit to this sector and then divide it up between a number of companies in order to reduce company specific risk. This is similar to buying an ETF such as the Oil Service HOLDRs ETF (OIH), but allows you to pick the specific component companies.

Richard Rhodes, professional trader, money manager and editor of The Rhodes Report was one advisor who accurately forecast the recent decline and moved into short positions going into this past week.

And while he sees the potential for a near-term bounce, this week's action leads the advisor to say, "A major trading high has formed, which will lead to a -10% to -20% correction...perhaps deeper."

He explains, "If there was ever a 'bell' to signal the end of an intermediate or long-term rally; we think the decline from the S&P 500 high of 1565 to yesterday's low at 1465 suffices as such."

The constriction of credit and liquidity, he notes, has led to very poor advance/decline figures. As such, he suggests being a seller during any rallies that result fro the "month-end bullish pattern and short-term oversold condition."

Indeed, even in his Long Only Portfolio – a portfolio that as its name implies only holds long position – he now says, "We are going to a very rare, but very prudent 'no position' stance." As for his Long/Short Portfolio, he says, "We are now aggressively short."