This Week's Rocket Stocks Update

At the start of each week, I write a column featuring the Rocket Stocks for the Week, a list of stocks that I believe have the potential to surge higher in the coming days.

I select these Rocket Stocks not necessarily because they are great stocks to hold for the long term, but rather because they have the potential to either snap back because of an irrational selloff the week before or because they have some other potential catalyst that could create explosive price moves during the coming week.

For this week's Rocket Stocks of the Week portfolio, I focused on stocks that were set to report earnings.

One of the names on the list was Eaton(ETN Quote), which I selected because of its scheduled earnings release on Monday. As predicted, Eaton had a better-than-expected quarter as a large portion of its revenue came from overseas expansion in the electrical sector.

Shares of Eaton have since climbed 4.5%, and so I recommend profits should be locked in. Eaton is a great company with solid fundamentals, but as a Rocket Stock pick, it was meant to be a trade on the earnings -- and we got that. Never turn a trade into an investment.

Eaton is also in our 80-to-120 portfolio, a list of stocks around $80 that Jim Cramer believes are likely to go to $100 and then to $120 in a bull market.