Tuesday's Daily Blog Watch

Editor's note: Every morning, James Altucher presents the most timely, topical posts from the Web's best business blogs.

In my first book I wrote about the "5% Gap" -- a trading system for when stocks gap down more than 5%. With the lack of volatility in the markets there were very few occurrences in the past year, so I examined what I call "The Mega Gap" -- a trading system that adjusts based on volatility.

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10Q Detective also has some thoughts on the $1 CEO phenomenon, particularly as regards Yahoo! (YHOO Quote - Cramer on YHOO - Stock Picks)and Apple (AAPL Quote - Cramer on AAPL - Stock Picks).

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The top 20 performing Chinese stocks in 2006 that trade in the U.S.

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Hilary Kramer believes the pump is primed at BJ Services (BJS Quote - Cramer on BJS - Stock Picks).

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JoeCit is nervous that Pre-Paid Legal Services (PPD Quote - Cramer on PPD - Stock Picks)is a value trap.

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Super hedge fund SAC Capita, run by Stevie Cohen, announced 5% positions in 2 new companies over the past week.

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Modern Graham revisits his list of deep-value defensive stocks.

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Financial Nirvana looks at the public companies that benefit from pollution in China.

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Seeking Alpha presents the short case on The Gap (GPS Quote - Cramer on GPS - Stock Picks).

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Blogging Stocks places the odds on a merger between XM Satellite Radio (XMSR Quote - Cramer on XMSR - Stock Picks)and Sirius (SIRI Quote - Cramer on SIRI - Stock Picks).

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Stockerblog -- where do they get this stuff? -- finds out which bank just paid a $100-a-share dividend on top of their usual dividend of $75 a share.

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Nice post by GigaOm on how AOL has been selling itself off, piece by piece.

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Pink Sheets revisits Big Apple Bagels.

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In 2002, if you bought every month all the stocks trading below $3 on the NYSE and held them for one month, you would've had a return of more than 200%. Please check out my article on low-priced profitable stocks trading on the NYSE.

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