Right now, the fundamentalists are in a strong tug-o-war between the bullish and bearish stance for the steel and iron sector.

Frankly, I don't know how China's dwindling demand or Obama's infrastructure plan will ultimately affect the sector in the long term, but I know that right here, right now the steel and iron industry is a strong sector with a lot of bullish potential during the summer.

How can I be so sure?

Because the charts never lie.

I make my profits with technical analysis, which relies heavily on stock charts. When I analyze thousands of charts each day, I'm looking for geometric patterns — that is objects or shapes that the stock's price performance is making.

Because patterns repeat, we can use them to determine the probability of a certain outcome — in our case, the probability of how far a stock with move and for how long.

Technical Analysis Takes the Guesswork Out of Investing

Technical analysis helps traders distinguish between what is real and what we think is real. With emotions running as high as the mercury this summer, finding reliable information can mean the difference between cursing big losses or celebrating explosive wins.

Given my long-standing successes with trading, I've found that technical analysis points the way to the most profits because the only real thing is where a price is at the end of the day — not a pundit's opinion and certainly not speculation.

When you think about it, price is nothing more than investor emotions plotted on a grid in the form of lines or shapes that show how they feel about that particular index, stock, ETF, currency or commodity — and that can tell traders a lot.

Build Profits with These Three Iron & Steel Stocks

Knowing what I do, I can tell you that, given the chart patterns I'm seeing, I fully expect the following three iron and steel stocks to make big moves up before the summer's out.

All three stocks have similar chart patterns right now characterized by run-ups to strong resistance levels, and then pullbacks off of the highs, which makes now an excellent time to get long at a discount.

And there's no better way to make the most of a stock's move than by trading its options.