This is one of the methods for knitting perpendicular (i.e. out of the fabric). This method prepares the stitches before hand rather than picking up the stitches after you complete the main piece.
There is a written version of this tutorial on this blog.
thanks so much for putting that on here. I was knitting something for a great grandson and thinking how cute pockets would have looked but just didn't want to 'mess' with placement problems, etc...and not jujst pockets could be used but 'decorations' One could catch up those extra loops with a stitch holder and work them up later. I just never would have thought of that in a million years. That is just so neat. Thanks again and again. I'll for sure be using this in my noviice knitting projects to look more 'like a pro'.