Good Protection for the Steelers

Coinciding with some comments by Wilbur Ross this morning (Ross is Donald Trump's Commerce Secretary nominee), steel plays are rallying off some obvious potential support levels. 

After circling back to their respective 50-day simple moving averages, the likes if AKS RS X are up sharply as I write this on the prospect of protectionism from Trump aiding their firm's top and bottom lines. 

From a technical perspective, a strong reaction to a 50-day pullback is impressive. But we do want to see a bit more follow-through higher before assuming the consolidation has ended for steels. It is a good sign to see steels rallying in the face of a Dollar bouncing from oversold conditions, and in the face of the other "Trump play," uranium, getting pounded today. Moreover, I doubt the steels care too much about GS's earnings fade, NFLX earnings tonight, or tech play GIMO's implosion. 

So as U.S. steels outperform in today's session, the issue is gauging if they turn in a solid close by the bell and then can resume their impressive strength since Election Day.

More in my usual Midday Video for Members.