After the FED tapered yesterday afternoon (or announced that they would be doing so), stocks ripped higher for the rest of the day recovering all the losses from the couple of weeks of digestion we saw earlier in the month.

Along with this came a flood of new bullish set ups, now at which point many have already triggered or do not offer the best risk:reward to enter from a swing perspective.

However, there are still a few gems to find and one industry in particular; steel. Steel stocks have been a tear this past week, as seen in the charts below $X and $AKS have done quite well (both highlighted on my Week Ahead Post last week).

With this abnormal strength in this industry I naturally am interested in potential rotation beneficiaries, one name that came to mind was $NUE (Nuecor). $NUE has been consolidating well for the past month or so and now has offered a nice base to trade in. On an intermediate basis (a few weeks), use a close below 51.00 as your out and look for a close above 53.00 to confirm the breakout.

$NUE Chart12-19-13 nue

$AKS Chart

 

 

12-19-13 aks $X Chart 12-19-13 xAlso, the $SPY chart is listed below (goes ex-dividend tomorrow) but is currently consolidating well next to all-time highs. I am looking for a breakout to new all-time highs in the next few days.12-19-13 spyFinally, I am still watching the bonds ($TLT) for a breakout or a breakdown. The breakout over 104.00 and the breakdown under 102.00. See chart below, which ever comes first a close below 102.00 or a close above 104.00 will likely signal the start of the next trending move in the bonds. 12-19-13 tlt

Steel Heating Up Indices & Bonds On Watch