This Week's Rocket Stocks Portfolio Update

At the start of each week, I write a Rocket Stocks column featuring 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 snapback due to an irrational selloff the week before or because they have some other possible catalysts that could create explosive price moves during the coming week.

When I wrote Trade Like a Hedge Fund, I focused on 20 different uncorrelated strategies that work when trading within the system. The key when trading within a system is to stay within it even through hard times. The same is true when trying to pick stocks that have weekly catalysts ahead of them.

This week I highlighted Adobe Systems(ADBE Quote) as a good risk-reward play ahead of earnings. Adobe is an indirect play off the Apple(AAPL Quote) iPhone as it is a main supplier of flash video used in the iPhone.

On Monday night Adobe reported great fourth-quarter results, posting a 21% boost in profit. Net income was $222.2 million, or 38 cents a share, compared to $183.2 million, or 30 cents a share, in the same period last year. Shares were up as much as 5% for the week on Tuesday, but settled to close with only a 0.5% increase since Monday. I believe we'll see a few more points on this stock before it's all said and done.