Four Hidden Stocks With Horsepower

Uptrends are getting tougher to find as we head toward November, with the major indices caught in a significant downturn. Of course, a few market leaders like Amazon(AMZN Quote) and Apple(AAPL Quote) are pointing in the right direction, but after their huge rallies, the reward/risk just isn't favorable for new positions.

Fortunately, there are still pockets of opportunity in this market, if you know where to look. Step down the capitalization calendar from the marquee names and you'll find a number of uptrends that show no signs of letting up, despite gyrations in the broader market. These issues could fill out a balanced portfolio for those who are looking to maximize returns through year's end and into 2010.

What's the best time to add exposure, given the current downturn? My advice is to watch the calendar, because the next options expiration, starting on Nov. 15, signals the start of highly positive end-of-year seasonality that will continue into mid December. It makes sense to use that favorable period to open new positions and to add to winners.

Gol Linhas Aereas Inteligentes (GOL) -- Daily Source: eSignal

Golinhas Aereas Inteligentes(GOL Quote) is a low-cost Latin American airline that bottomed out in April, after a long downtrend. The subsequent recovery mounted the 200-day moving average in July and accelerated, reaching $11.53 in August. The stock then dropped into a sideways pattern that's still in place, more than two months later.

The blue line marks the August 2008 swing high at $12.14, with the current pattern grinding out the handle of a cup-and-handle breakout pattern. A rally over that line should trigger a breakout that reinstates the uptrend, with a three to six month target in the upper teens. One note of caution: This is a Brazilian issue that may be subject to that country's proposed financial transaction tax.