Using the Sword and the Shield

Despite the major indices flashing green as I write this, we have some ugly post-earnings reactions in the likes of AKS QCOM SHOP UAA, among others. 

On the topic of AK Steel, we can also see U.S. Steel (X) get hit. But it is worth noting which steels stick out the proverbial shield to defy these selling attacks. And when we do, Schnitzer comes back in focus.

For a while now, SCHN has been out favored domestic steel play, a recurring idea for Members both as a trade and even long-term. Despite sector pressures and a recent head-fake higher in the SLX (ETF for steels), SCHN has held firm. 

On the Schnitzer daily chart, below, we see a relatively clear trend, with a steady grind higher. 

Now, to be sure, if the rest of the steels suffer further selling into the holidays it is tough to see SCHN holding up this well. But, then again, all SCHN really needs is for some other steels, like NUE RS STLD, to get their acts together and prepare for a push higher in order to flourish. 

Elsewhere, we are keeping tabs on a few recent earnings winners for potential new long entries, with TWTR just one example as it does not give back much of recent gains.