The Globe and Mail attempts to identify stocks that are in a "pre-uptrend" coupled with a growing return on equity (ROE) in its Wednesday edition. The Globe's Michael Bowman writes in the Number Cruncher column that a pre-uptrend is a term used to define stocks poised to potentially move higher. Mr. Bowman only considered firms with a market cap greater than $500-million. He also looked at moving averages, which are technical indicators that smooth prices to form a trend-following pattern. Moving averages do not predict price direction, but rather define the current direction with a lag. Stock prices are in a pre-uptrend when the share price is greater than the 200-day moving average, which in turn is greater than the 20-day moving average. What this indicates is that the higher share price will eventually pull the 20-day moving average up so that it crosses the 200-day moving average. That phenomenon is called the "golden cross," which is a very bullish technical pattern. All of Mr. Bowman's picks are in a pre-uptrend. Stocks poised to rally are Toronto-Dominion Bank, Potash Corp. of Saskatchewan, Canadian Imperial Bank of Commerce, Coastal Energy, ShawCor and Black Diamond Group.