This may sound obvious (or not), but my Maximum Profit system profits from what’s working in the market at any given time — stocks that are already winning. After all, who would you rather pick in a straight-up contest, the hot team with the 10-game winning streak or the opponent who hasn’t won a game in the last four tries?

The two picks I’m about to reveal come from the S&P 500’s strongest sector year-to-date: technology.

Now, there’s a lot that goes into the system and its algorithms, but in simplest terms it finds winning trades by using two of the most powerful indicators from the worlds of technical and fundamental analysis.

The first of these is known as relative strength.

Relative strength (RS) — not to be confused with the relative strength index (RSI) — forms the foundation of my system. Relative strength is one of the few true edges available in the investing world. Even Eugene Fama, father of the Efficient Market Hypothesis (EMH) — which says that markets efficiently price stocks using all available information — called relative strength an “anomaly” (in a good way!).

It’s been proven that stocks with high RS scores — stocks that are outperforming their peers — continue to outperform. In other words, winners win.

So my system uses RS to find stocks that are at the top of their game. Stocks that have a score of 70 or higher — meaning stocks that are outperforming at least 70% of all stocks — then get filtered through what I call my “Buffett screen.”

#-ad_banner-#This second filter ensures that my system is finding companies that sport solid fundamentals, by mainly looking at how well a firm is growing its cash flow. Since cash flow is the life-blood of any business, we want to find ones that are generating cash… fast.

My system then ranks these stocks (from 1-100) based on how quickly they’re growing cash flow. To pass my Buffett screen a stock must have a cash flow relative strength rating of 70 or higher.

Combined, these two scores — RS and cash flow RS — create my Maximum Profit score (also based on 1-100). A high score means a stock is firing on all cylinders and has a great chance of continuing its ascent.

But buying a stock with a strong Maximum Profit score is only half the battle… my system also tells me when a stock has run its course and it’s time to bag our winner (or cut short any losses). In fact, many of my followers consider this to be one of the most valuable aspects of the Maximum Profit system — knowing with confidence when to get out of a particular position.

Here’s a clear example of how the cycle worked with Southwest Airlines (NYSE: LUV).

Often, new highs create uncertainty among investors. They tend to think that when a stock or the overall market reaches new highs, it’s time to take money off the table.

Similarly, most investors would scoff at the idea of buying a stock that’s reached a new 52-week high…

But then again, most investors don’t have the Maximum Profit system at their fingertips. If they did, they’d know that based on history, future gains are possible after new, long-term highs are hit. In fact, many of the stocks in our portfolio were flagged after hitting new 52-week highs — and they’ve gone on to post impressive gains since.

Editor’s Note: As I mentioned earlier, I won’t be revealing the two new Maximum Profit picks Jimmy shared with his readers out of fairness to his subscribers. But I can tell you a little about them.

One is a fast-growing tech company that could very well become the next Cisco (Nasdaq: CSCO). What’s more, it boasts a Maximum Profit score of 93. The other, meanwhile has already delivered a 15.7% gain for Maximum Profit subscribers — and it’s still a buy. In fact, with a Maximum Profit score of 94 — it boasts one of the highest scores the system has ever produced.

If you’d like to learn more about Maximum Profit and how you can sign up to receive two issues per month, complete with fresh picks and access to the current portfolio — as well as a slate of free reports — I invite you to follow this link.