Top Rocket Stocks for Week of March 17

Updated from 7:01 a.m. EDT

Since the start of the Rocket Stocks weekly column, I've been putting together a list of 10 stocks each week that I believe have the potential to move higher in the coming week.

With the market's recent volatility, the best way to trade lately is finding beaten-down stocks that have both short-term growth potential and strong fundamentals.

With such volatile stocks, all you really need is a small ounce of hope for the shorts to start panicking and the momentum drivers to start piling in, driving up share price.

Back testing on the Nasdaq 100 shows that a stock that drops 10% in a day will on average be 2% higher one week later. Conversely, if a stock is up 10% in a day, it is usually down one week later.

Altucher: Stocks I'd Buy in a Recession

Before we take a look at this week's Rocket Stocks portfolio -- which includes names like Goldman Sachs GS, Tesoro TSO and Southern Union SUG, let's see how the last week's picks fared.

• Zoltek ZOLT: Up 4.6% on the week.
• Potash POT: Up 4.4% on the week.
• MercadoLibre MELI: Up 3.7% on the week.
• LMI Aerospace LMIA: Up 3.2% for the week.
• Dick's Sporting Goods DKS: Up 2.7% on the week.
• National Oilwell Varco NOV: Up 0.3% on the week.
• Sasol SSL: Down 1.5% for the week.
• Companhia Energetica de Minas Gerais CIG: Down 4.8% on the week.
• Holly Corp HOC: Down 7.1% on the week.
• Chimera Investment CIM: Down 7.2% for the week.

Now let's look this week's Rocket Stocks portfolio.

First up this week is Aluminum Corp of China ACH, which has a forward price-to-earnings (P/E) ratio of 8.8 and a P/E-to-growth (PEG) ratio of 1.1.

Down $50 from its all-time high of about $90 a share hit back in October, Aluminum China has been oversold, and thus I am looking for a snapback rally into this week's preliminary earnings report.

Aluminum China operates in two bull markets: China and aluminum, and although it represents a much riskier than, say, Aloca AA, Aluminum China has the potential to ramp more than 10 points in a single day.

Companies like Kaiser Aluminum KALU, Century Aluminum CENX and Alcoa all handily beat their latest earnings estimates, which could help Aluminum China's chances to deliver an upside surprise.