The markets have finally settled and now show some signs of predictability.

Make no mistake about it; our economic recovery is well underway. This correction stemmed from the European debt crisis and reflected a change in the risk premium assigned to the stock market… not a reflection of the future economy.

All this is really moot, because the FastCap system doesn’t need a market prediction to function.

Despite what were a few intimidating weeks, our stocks have—for the most part—exhibited the classic post-earnings pattern we’re looking for.

In case you’re not familiar, here’s what I’m looking for:

1. The stock reports an upside surprise to earnings and jumps.

2. Over the next ten days or so, the stock falls as short-term traders take profits.

3. We buy in.

4. As long-term investors are attracted by the improved fundmentals, they buy the stock and drive up the price over the coming weeks.

The pattern has held up despite the turbulent market.

CARBO Ceramics (NYSE: CRR) is now up 13.4%. So raise your sell stop to $66.50 to ensure we don’t lose anything.

GeoEye Inc (Nasdaq: GEOY) is up 4.2%. Let’s raise the sell stop to $27.65.

My newest pick, Raven Industries (Nasdaq: RAVN), is up 5.6% in a short time, so raise your sell stop to $31.65.

Even more impressive, not only are these stocks profitable, but they are all outperforming the market since my recommendation.

Finally, our sole laggard is KBW Inc (NYSE: KBW). This can be chalked up to weakness in the financial sector as a whole, but we’ll hang on and mind our sell stop of $22.

In the meantime, I have a short list of earnings releases to review to see if any make the grade. It’s the slow season for earnings right now, the “unofficial” kickoff for the next season is July 11th, so expect a flurry of activity then. Even so, a new pick can come at any time.

Ahead of the tape,

Matthew Weinschenk