It has not been wise betting against steel stocks, but there may be a low risk short setup forming. Let's take a look at the chart of AKS, which is representative of many steel stocks (MTL, ZEUS, X).
The first thing that concerns me is that RSI has made a lower high while price reached new highs. This is a negative divergence.
While the obv indicator is still strong, volume has printed a couple of distribution days, which are high volume days of negative price action. Also, postive volume has not outpaced the negative days.
Finally, stochastics point to an overbought market.
I am not saying the long steel trade is dead. No major resistance points have broke. I do think steel is ready to at least pullback, which could provide a short term, low risk short opportunity. Low risk in that you can place your stop just above the recent high, keeping the loss at about 3 percent.
Note that I am not taking this trade and am only pointing out a scenario that I am watching. I am about 65 percent short right now and don't feel like increasing that number.