Top Rocket Stocks for Week of Dec. 17

Updated from 6:13 a.m. EST

Last week was yet another crazy week, with the equity markets swinging 200 points almost daily.

Clearly, the Federal Reserve has not done its job when it comes to easing the market's credit concerns. And with Libor creeping back up, additional credit worries are certainly valid. The continued backwardation in Libor rates may lead to additional selling in the financial stocks, so I would not yet try to bottom-fish there.

However, all of this doesn't matter even if the market has a disastrous week. Out of the 8,000 public companies, history shows that at least 1,000 to 2,000 stocks are likely to climb. It's our job to try to find those stocks most likely to do so.

This week's Rocket Stocks are primarily based around potential snapbacks playas as well as a few potential short-squeezes.

In last week's rocket stocks column, I focused on a variety of picks in different sectors. Let's see how they fared in last week's rough market.

• Intercontinental Exchange(ICE Quote): Up as much as 7.7% but ending the week with a 4.7% gain.
• Apple(AAPL Quote): Rose 3.3% to hit a new 52-week high of $200 on Friday but ended the week down 1.7%.
• Lehman(LEH Quote): Up as much as 3.5% but finished the week down 2.8%.
• Cypress Semiconductor(CY Quote): Down 2.6%.
• State Street(STT Quote): Down 2.6%.
• Eaton(ETN Quote): Down 4.9%.
• Costco(COST Quote): Down 5.5%.
• Yamana Gold(AUY Quote): Down 7%.
• Meritage Homes(MTH Quote): Up as much as 4.5% but ending the week down 8.5%.
• Kroger(KR Quote): Down 8.5%.

Now let's look at this week's Rocket Stock picks.

First up this week is Sirius Satellite Radio(SIRI Quote). There finally may be light at the end of the tunnel for Sirius and XM Satellite(XMSR Quote) shareholders. Last week a bullish analyst report suggested that a decision from the Department of Justice is likely to be favorable toward the merger of the two rival companies.

And while there is no official date for the DOJ's decision, a ruling may be imminent. Recently, Sirius CFO David Frear stated that the DOJ has "little left to do" to complete its review of the merger.