Today I am alerting you to a potential trade that is currently forming in the Eur/Jpy. Let’s take a look at a chart to see what I am talking about:

This is a daily chart of the Eur/Jpy and as you can see from the yellow lines the pair has been stuck in a inside candle patter for most of the month of may. Now the thing about these patterns in that the longer the price action is inside of a candle the larger the move is when it finally breaks out. And considering the fact that this pattern has been in effect for 14 days now. It’s safe to say that when this thing breaks its going to move hard.

There no way to tell when this breakout is going to occur. It could occur today, tomorrow, or two weeks from now but when it does its going to be an amazing opportunity for profit.

Just remember not to take a trade until after the breakout occurs and then trade in the direction of the break. If this trade takes a long time to develop don’t get frustrated just continue your trading as usual and remember to check on it after the close of each daily candle to see if price has closed outside of the yellow lines. Also remember the longer price stays in the pattern the larger the breakout and more potential pips for you.

And if you have any doubt about this technique then look at the chart below:

This is the same exact chart but with the previous inside candle as the focus. Look at how price moved down after the breakout. Price moved down for nearly 1000 pips before there was a pull back.

Now its too late for you to profit on this trade, but I have showed you what you need to do to profit on the next. All you have to do is act. Until next time.

Happy Trading…

If you would like to learn about more patterns like these and how you can discover how you can learn the secrets to trading for a living then visit BeatWallStreetNow.com.

At the current prices, GU has the potential to become a 10-bagger.

Let’s start by discussing what a 10-bagger is and why GU has the potential to become the next 10-bagger: a 10-bagger is a stock that multiplies its current price by 10. Let’s say a stock is at $1. If it starts an uptrend that goes up to $10, that’s a 10-bagger.

Now let’s check how a potential 10-bagger looks like. A stock with such potential is usually a stock that dropped like a rock in a previous bear market. The stock then consolidates for some time, and starts a new uptrend that reaches the price it was before the bear market.

Here’s a nice example of a 10-bagger: CROX:

It’s not easy to find a stock that drops as fast as CROX did in the past… the stock went from $70 to less than $1 in just 1 year! At that time everyone was telling CROX was a terrible company and that it would go to $0. Now that was panic talking. That was the best possible point to buy CROX stocks.

As you can see in the chart, CROX is now back to $10 and those that bought it at $1 made good money.

Now let’s check GU:

- GU also dropped like a rock, just like CROX and now it’s consolidating for over a year around $1.

- $1 is a vital support for GU right now, and the good thing is that IF this stock starts to move it can become the next 10-bagger.

- On the short term, GU can move up to $3 without many problems. It just needs some good news to triple its price in days or weeks.

- After the $3, there are not many resistances so GU can reach the $10. It should take some time to reach such a target, and as always there are risks.

- But the potential is there for sure…

To get more free stock picks, just go to Top Trading Picks and sign up our newsletter… We pick the best stocks, and send them to you by email, 100% free… Sign up now!

“General Environmental Management (GEM) assists its clients, which may include government entities, commercial and industrial clients, educational institutions, and other environmental service providers in the Western United States, in meeting regulatory requirements for the disposal of hazardous and non-hazardous wastes.”
-from GeneralEnvironmental.com

GEM (which trades under the symbol GEVI.OB) has recently made some exciting additions to its business model. Formerly just a waste removal company, they are now moving toward a treatment driven business model. The margins of this new venture for them are in the 35-40% range, as opposed to approximately 5% where it was before.

“GEM has been providing a premium level of environmental solutions to clients in the Western Region of the United States for over seven years…”
-Timothy Koziol, Chief Executive Officer of GEM.

Clean water is in diminishing supply, so the need GEM’s treatment facilities will continue to grow. GEM’s plans for building a network of treatment facilities and providing a full range of environmental services for its clients are expected to drive greater future profits.

COMPANY FACTS

Website:
http://www.generalenvironmental.com/

Incorporated Year:
1990

Float:
3-4M

Shares Issued:
21,995,153

Stock Agent:
Colonial Stock Transfer

Recent News:
General Environmental Management Implements New Business Model to Drive Profitability and Higher Margins

“The water industry domestically is a $120 billion market and growing with increasing demands from industry, government and consumers. Globally the water market, which exceeds $400 billion, is third in size behind only power generation and oil. Diminishing world water supplies will only aid the Company in securing more non-hazardous wastewater business in the future…”
-Timothy Koziol, Chief Executive Officer of GEM.

This message is part of a paid advertisement from The DreamTeam Group and should not be considered an investment recommendation. It has been complied from publicly available sources of information.

Everything is great! Happy days are here again… Right?

So is the DOW, S&P, and NASDAQ all going to keep going higher forever? Or are the teachings of a dead mathematician going to reverse this juggernaut of a market?

In my new video I show you exactly what I mean and how the these indices could be very close to a very important tipping point.
Click here to watch!

This is without a doubt, one of the most important videos I have ever made and if you are concerned about your financial future, you don’t want to miss it.

PSOF is trading near a 9 months uptrend line. The stock shows a typical Triangle formation which should lead to a breakout to the upside. The MACD is currently showing a buy signal, giving us an extra strength for this trade. PSOF is a buy at $6, with a stop loss at $4.90, and a short term target at $8.

To get more free stock picks, just go to Top Trading Picks and sign up our newsletter… We pick the best stocks, and send them to you by email, 100% free… Sign up now!

All told, we’re up 35% on the trade since our November 9th purchase at $29.96. That’s not bad for three month’s worth of work.

More importantly, I’m going to go ahead and take the profit by selling the SII shares currently in the model portfolio. If you’re following my lead, I think you should do the same too.

Smith International, Inc. (NYSE:SII)

While there’s always a chance that Schlumberger could sweeten the pot a bit more, there’s also a chance Schlumberger could take the offer off the table. The potential upside of a few more cents pales in comparison to the downside here. So, let’s not get greedy – let’s think logically, and cash in the bird we have in our hand rather than hope for the two in the bush. (Besides, the process of converting an acquired company’s shares to cash is lengthy, and can often result in your broker charging you for the service.)

As for a stock to replace this one, I’ve got nothing I want to dive into today. However, our watchlist is plentiful. I expect to wade into one or two of those names later this week and/or early next week.

Here’s the most recent watchlist.

Watchlist - 02/22/10

Just to recap, Frontline is an oil tanker/shipping company that made its way onto our watchlist based on its valuation. With a current and forward-looking P/E in the 15-ish area, we’re finding a decent price. And, with net margins of slightly better than 11%, earnings are fairly well protected.

Chart-wise, we couldn’t ask for anything more. FRO shares just kissed and pushed off a long-standing support line. If the pattern repeats itself (and I believe it will), the stock should give us a nice run for a few weeks…. though the aim is to put the stock into a more permanent uptrend.

Frontline Ltd. (NYSE: FRO)

After the purchase, this is what the portfolio will look like.

By the way, don’t forget about tonight’s webinar.

I suspect that was the case over the last month or so with aerospace and defense stocks. Prior to unveiling the requested military budget for 2011 (2010’s has been in place since last October), many investors were convinced that progressive Democrat President Barack Obama would slash military spending. Surprise - he wants to spend more in 2011 than he did in 2010, after 2010’s total ended up being bigger than 2009’s number [2009's total was George W. Bush's call.]

Good news for defense contractors? You bet. In fact, I’d almost say the expanded budget alone makes them investment-worthy….particularly at a time when consumer dollars are expected to run dry again soon.

The thing is, these names were already investment worthy in their own right; defense stocks (and I mean defense much more so than aerospace) are among the most attractively-priced equities you can find anywhere right now. Even if the 2011 defense budget was contracted - and it still may be – it would be a modest contraction at best, and the bulk of these companies would still be just fine.

Specific names? Check out the grid below, with which I’ve tried to hone in on the defense names specifically, and weed out the aerospace-heavy or aerospace-exclusive stocks.

It doesn’t take long to recognize that some of the stocks are just undervalued. And now, thanks to President Obama, thanks to the looking defense budget, the number should more than justify higher stock prices for the next couple of years.

Just a thought about one of the few (and I mean very few) pieces of economic data that actually means something.

As far as timing goes, the chart of the S&P 1500 Aerospace/Defense Index pushed off its 100 day moving average after the pullback, and made the move on strong volume. The selling volume was never that strong to begin with either. So, if you’re on board with the general idea, now’s not a bad time to start wading in.

S&P 1500 Aerospace/Defense Index

This is a case, however, where I probably wouldn’t opt for an ETF like the iShares Dow Jones U.S. Aerospace & Defense Index Fund (ITA). Rather, I’d go fishing for a low P/E name with strong margins and growth…. maybe something like Alliant Techsystems (ATK) or CPI Aerostructures (CVU). Your call.

As of right now, we’re about 45% invested, which means we’re 55% cash. We own Teleflex Incorporated (NYSE:TFX) Smith International, Inc. (NYSE:SII), ADTRAN, Inc. (NASDAQ:ADTN), and PAETEC Holding Corp. (NASDAQ:PAET), each of which makes up about 10% of the total portfolio. And, we’ve got 5% allocated to IDEX Corporation (NYSE:IEX). (We may add another 5% worth of IEX at some point.)

Though the ultimate plan is to maintain a 100% stock allocation, we also need the right environment for that to feasible; that has not been feasible over the last few weeks.

Performance-wise, our portfolio value has moved in the same general direction as the market – as it should. It did not fall as far, however, since we deliberately were holding the safest and least volatile holding of all…. cash. As we described in recent updates, we’re simply waiting for what is apt to be a major bottom rather than an intermediate-term one.

Despite the slow start, and despite the fact that we’re not even 50% invested, the portfolio managed to do something interesting over the last three months – we’ve actually moved from underperforming the market to outperforming it. This is the long-term objective of our core strategies…. to beat the market, yet minimize volatility. [Side note: Volatility can be a performance killer, and not just for psychological reasons.]

To put it in more scientific terms, I seek high-alpha, low-beta positions. It can take weeks at a time for the selection techniques to yield those results, but in time – and over time – the net benefit should be more of the same kind of outperformance.

Anyway, the chart illustrates the result of reaching the ‘high alpha, low beta’ goal. That premise will be the core of most strategic discussions going forward.

Insight Enterprises, Inc.

Insight Enterprises, Inc. (NASDAQ:NSIT) managed to resist the market-wide selling last and took advantage of the semi-bullish environment this week. At this point in time, the would-be buyers need to get off the fence.

On the technical side, Insight Enterprises managed to push back above its 50-day moving average line in late January. Moreover, the stock tested that line – successfully – as support over the last three weeks… gaining 7.5% in the process. In comparison, the broad market is down 2% for the same timeframe. The relative strength alone should be compelling to bulls; the action at the moving averages says the time is right.

Insight Enterprises, Inc. (NASDAQ:NSIT)

On the fundamental side, the strong chart makes sense.

Insight Enterprises, Inc. is a loser on a trailing-twelve month basis, but the company has been profitable in its last tree quarters. A terrible quarter four quarters ago is dragging down the whole year, but many investors who use full-year ’sort and scans’ don’t realize that once the company releases its next earnings report, that loss of $3.76 per share in the second quarter of 2007 will no longer be part of the trailing-twelve months; the TTM number should then be a nice $0.93 per share.

At a plausible EPS estimate of $1.04 for 2010, NSIT really is underestimated and undervalued at its current price.

LCA-Vision Inc.

It’s been a long-time in the coming, but LCA-Vision Inc. (NASDAQ: LCAV) is actually trending higher now. In fact, a series of technical buy signals fired following Tuesday’s big 8% rally. Among the key signals include a simultaneous cross back above the 20, 50, and 200 day moving average lines.

Though slightly overbought in the short-term, and with a suspicious lack of volume behind the intra-day swing, LCAV still represents an enormous long-term rebound opportunity now that the paradigm shift is in place.

Note that LCA-Vision will likely meet turbulence near the resistance level around $8.00. Waiting for a cross above that mark would be wasted time, so it’s not advised to hold off on a purchase until that hurdle is crossed. Just know that the area could be an obstacle when the time comes.

LCA-Vision Inc. (NASDAQ: LCAV)

The most advantageous aspect of this chart is the incredibly slow pace at which the reversal happened… a slow, bowl-shaped move. Given that rebounds tend to mirror the selloff, investors can reasonably expect LCAV to slowly continue building momentum over the next several months.

As far as corporate performance is concerned, that’s LCA-Vision’s Achilles’ heel. For 2009, the company lost $33.2 million, or $1.79 per share. That’s disastrous in comparison to the loss of $6.6 million, or 36 cents per share, in 2008. Yet, the Q4 ‘beat’ offers a glimmer of hope for a turnaround.

The estimated loss of $0.73 per share for 2010 still stands, but that clearly didn’t stand in the way of Tuesday’s buying; perhaps the buying will become more deserved as the year wears on, and Tuesday’s bulls were acting preemptively.