Making Columbus, Ohio Proud

Although they seem to have lost some of the allure which attracted momentum players to the sector last year, steels are steadily improving this summer. 

Not only have the likes of NUE and STLD survived their respective earnings reports last week, their daily charts are impressive relative to peers insofar as seeing price now hold back over all major moving averages. 

In addition, with AKS rallying this morning off its own earnings report, the sector at-large is giving it the old college try at a summer revival after the "Trump Trade" shine wore off several quarters ago. 

And that may very well be the perfect setup for bulls, as the hot money traders look elsewhere after having been disappointed by numerous steel sector head-fakes in recent months. Indeed, a more subtle setup is typically better for bulls, as there is initial doubt about the rallies before the consensus eventually catches on that this time the moves have legs. 

For now, we want to see continued improvement not just from the visible steels like AKS X and others, but also from the under-the-radar ones like Worthington, Ohio-based Worthington Industries, below on the daily chart. WOR, in the Columbus area, is a thinner domestic steel in terms of volume.

However, the key takeaway from this daily chart is that the Trump Trade hangover may finally be rehydrated and ready to rally again after many, many months of building a new base. We are watching this one long back over $53, among other steels if the sector keeps surviving earnings season as well as it has so far.