Nucor

President Trump wants to secure our southern border using structures made of steel. Steel stocks Nucor Corp.  (NUE) , Reliance Steel & Aluminum Co.  (RS) , Steel Dynamics Inc.  (STLD) and United States Steel Corp.  (X) are recovering from bear market territory and should continue to rise if funding becomes available for border security. In addition, once Congress approves spending for infrastructure projects the demand for steel will be on the rise.

Nucor closed Monday at $53.43 up 3.1% so far in 2019 and up 7.3% since its Dec. 26 low of $49.79. The stock is in bear market territory 24.2% below its Jan. 12, 2018 high of $70.48. The company has a P/E ratio of 8.65 and offers a dividend yield of 2.97%,  according to Macrotrends.

Reliance Steel closed Monday at $72.40, up 1.7% so far in 2019 and up 5.5% since its Dec. 26 low of $68.62. The stock is in bear market territory, 25.7% below its May 31, 2018 high of $97.41. The company has a P/E ratio of 8.03 and offers a dividend yield of 2.76%.

Steel Dynamics closed Monday at $31.87, up 6.1% so far in 2019 and up 10.2% since its Dec. 27 low of $28.91. The stock is in bear market territory, 38.8% below its May 17, 2018 high of $52.09. The company has a P/E ratio of 6.68 and offers a dividend yield of 2.38%.

U.S. Steel closed Monday at $20.45, up 12.1% so far in 2019 and up 19.7% since its Dec. 26 low of $17.09. The stock is in bear market territory, 57.1% below its March 1, 2018 high of $47.64. The company has a P/E ratio of 4.70 and offers a dividend yield of just 0.98%.

Regarding Trump's wall, the Department of Homeland Security should issue DHS Bonds through the Federal Finance Bank, a little-known facility within the U.S. Treasury. Fund homeland security with DHS bonds and help savers, too.

Congress created the FFB in 1973 as a government corporation under the supervision of the Treasury Secretary. At the end of 2018, the FFB is managing a host of borrowings including the U.S. Postal Service for $13.2 billion and Rural Utilities Service for $41.3 billion.

DHS could offer $5.7 billion in 30-year bonds at a favorable yield of 4% targeted to savors on Main Street, USA. The Federal Deposit Insurance Corporation Quarterly Banking Profile shows that insured deposits totaled $7.376 trillion at the end of the third quarter with interest rates below those on U.S. Treasuries. 

The Weekly Chart for Nucor

Courtesy of MetaStock Xenith

The weekly chart for Nucor ended last week negative but oversold with the stock below its five-week modified moving average at $55.94. The stock moved above its 200-week simple moving average or "reversion to the mean" at $54.26 this week. The 12x3x3 weekly slow stochastic reading ended last week at 19.47 below the oversold threshold of 20.00. A close this week above $55.94 will upgrade the weekly chart to positive as the stochastic reading rises above the oversold threshold of 20.00.

Trading Strategy: Buy Nucor down to the "reversion to the mean" at $54.26. There are upside targets that are shown as the horizontal lines on the weekly chart -- my annual and semiannual risky levels are $56.66 and $57.81, respectively.

The Weekly Chart for Reliance Steel

Courtesy of MetaStock Xenith

The weekly chart for Reliance ended last week negative but oversold with the stock below its five-week modified moving average at $75.17. The stock is just below its 200-week SMA or "reversion to the mean" at $74.49. The 12x3x3 weekly slow stochastic reading ended last week at 14.53 below the oversold threshold of 20.00. A close this week above $75.24 will upgrade the weekly chart to positive if the stochastic reading rises above the oversold threshold of 20.00.

Trading Strategy: Buy Reliance up to the "reversion to the mean" at $74.49. There are upside targets that are shown as the horizontal lines on the weekly chart -- my annual and semiannual risky levels are $85.23 and $86.13, respectively.

The Weekly Chart for Steel Dynamics

Courtesy of MetaStock Xenith

The weekly chart for Steel Dynamics ended last week negative but oversold with the stock below its five-week modified moving average at $33.70. The stock moved above its 200-week simple moving average or "reversion to the mean" at $31.83 this week. The 12x3x3 weekly slow stochastic reading ended last week at 8.52, below the oversold threshold of 20.00 and below 10.00 as an indication that the stock is "to cheap to ignore". A close this week above $33.70 will upgrade the weekly chart to positive if the stochastic reading rises above the oversold threshold of 20.00.

Trading Strategy: Buy Steel Dynamics down to the "reversion to the mean" at $31.83. There are upside targets that are shown as the horizontal lines on the weekly chart -- my monthly, quarterly and semiannual risky levels are $37.03, $40.78 and $43.29, respectively. Not shown is my annual pivot at $31.22, which is a buy level.

The Weekly Chart for U.S. Steel

Courtesy of MetaStock Xenith

The weekly chart for U.S. Steel ended last week negative but oversold with the stock below its five-week modified moving average at $21.65. The stock remains below its 200-week SMA or "reversion to the mean" at $24.58. The 12x3x3 weekly slow stochastic reading ended last week at 9.73 below the oversold threshold of 20.00 and below 10.00 as the stock becomes "too cheap to ignore." A close this week above $21.65 will upgrade the weekly chart to positive if the stochastic reading rises above the oversold threshold of 20.00.

Trading Strategy: Buy U.S. Steel down to the horizontal line at $19.27, which is my semiannual pivot. The upside targets are the horizontal line at $23.37, which is my quarterly risky level, and to the 200-week SMA at $24.58.

Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.