BUZZ-Steel ETF: On a hot roll

** VanEck Vectors Steel ETF severely overbought with potential for back and fill, although charts still suggest room for greater gains

** SLX up 16 pct just since Election Day and has doubled YTD; hitting 2-year highs

** This as prices for steel and its raw materials in China rally, and hopes build that Pres-Elect Trump will push through an infrastructure spending plan

** Indeed, yr/yr pct change in Iron Ore Idx 62% Fe Fines now running at 60 pct; highest rate in 6 years (Thomson Reuters (Dusseldorf: TOC.DU - news) Datastream)

** SLX now attempting 3rd straight weekly close above 200-WMA; MA acted as support in 2011, and then resistance in 2012 and 2014. Chart: http://reut.rs/2gAZWYn

** Meanwhile, SLX/S&P 500 ratio rising; ratio has room until it reaches resistance at its 2008 trough, so steels can continue to outperform

** However, SLX weekly RSI reaching 9-year high; ETF strong, but at risk for near-term pullback to alleviate overbought condition ; that said, 200-WMA (now $36.43) can contain weakness

** Ultimately, inverse head & shoulders pattern can still call for at least the $46.00 area, or another 15 pct from current level

** Weekly close below 200-WMA, however, can derail the advance

** Top ETF holdings by pct TNA end-Oct (HKSE: 3366-OL.HK - news) include Rio Tinto (Hanover: CRA1.HA - news) , Vale (Swiss: VALE.SW - news) , and ArcelorMittal (LSE: 0NSF.L - news)