This is the City of the Angels, and You Haven't Got Any Wings

"Go back to Jersey, sonny. This is the City of the Angels, and you haven't got any wings." -Captain Dudley Smith, L.A. Confidential (1997) 

Everyone knows, but of course, if you want to find a world class steel firm then you head towards...Los Angeles? 

It may seem odd, but Reliance Steel out of Los Angeles, California, has been incredibly impressive on several levels. First, the steel play is acting reasonably well after earnings last week, holding the $70 level after a multi-day pullback following the steel sector rally from the late-winter through early-spring months. 

But, beyond that, few have noted the notion that RS is actually not far at all from its prior all-time highs, seen on the monthly chart, below. And when we contrast that point versus most other steels which have crashed and burned since their respective 2007/8 peaks, Reliance Steel sure does sound a lot like Dudley Smith, above. 

In front of U.S. Steel earnings this evening, it will be interesting to see if the steels can maintain their fairly benign consolidation off the prior rally. If so, several fresh longs are on our radar for Members, especially Reliance and all of its relative strength.