Craig:
I have seen "steelhead sign" in two ways on the beach.
1. You may see them moving down the beach, right in front of you, literally at your feet. This proximity to shore underscores the importance of retrieving your fly right to the waters edge. A large majority of takes will be within 20' of dry sand.
My problem with this kind of sighting is that invariably I have just cast, and the fish are swimming under my flyline! "*#@!^%$"
2. Hershel !
Many of the local regulars will tell you that sea lion presence is often associated with steelhead hook-ups. The theory is that they push even more fish in close to shore.
A Hershel story: Several years ago I took a gal I was dating down to Bush Pt. She was doubting my assurance that she may see fish moving down the beach, up close and personal (why do they always look at me that way when I tell them to "trust me"?) I was fishing 30 yards E. of her and, out of the corner of my eye, saw a huge "hump" of water coming toward me 15' off dry sand from the East. As the "hump" passed at warp speed I clearly saw a steelie of about 12# fleeing an adult sea lion pushing the hump of water. I yelled "Pam, look at your feet", as the steelhead passed her and ran up onto the beach maybe 10 yards away. The steelhead flopped back into the water and took off as Hershel swerved away from Pam.
Steelhead 1 Hershel 0
Moore later,
Tom
