Counter Moves in a Complex Game

Steel stocks continue to quietly perform well, on the whole, despite the SCHN gap down after earnings this morning. 

Letter X is up 3.5% at the moment, capable of a violent squeeze higher. And other names of note have been discussed for Members both as swings and potential long-term investment ideas. 

Just as with the precious miners, more work needs to be done to conclusively say that the multi-year bear market in this sector has been terminated. But the progress is notable, as both groups of stocks have largely been marking time sideways for a few weeks after prior strong rallies. 

AKS, for example, is sporting a smoothing out 200-day moving average well below price, seen on the daily chart, below. The stock is also heavily-shorted and capable of a sharp squeeze higher in its own right, over $4.35. 

Given how many eyes are on TSLA's squeeze at the moment as opposed to steels, I am inclined to look more serious at steels if they survive the FOMC Minutes later today for fresh entries. 

Indeed, seeing steels breakout as a group in the face of the SCHN weakness today would be a powerful counter move for bulls.