Updated from 5:34 a.m. EDT
Don't even think about playing in the Beat the Street trading contest if you're going to trade the Wal-Marts (WMT - Get Report) or Microsofts (MSFT - Get Report) of the world. While I believe both could be solid long-term investments, the key in a competitive stock-picking contest is to focus on two main strategies: snapbacks and breakouts.
Hedge funds that focus on short-term trading have modeled out the various types of snapbacks and breakouts that occur. For this week, I've set up a Rocket Stocks portfolio that focuses on the stocks most likely to succeed for the week.
Last week was brutal, with the market dropping over 400 points for the week, but this recent decline in stocks has created some great opportunities.Before I talk about this week's Rocket Stocks, let's see how last week's picks performed.
- Echelon (ELON): Finished the week down 10%.
- CDC (CHINA): Finished the week down 13%.
- China GreenTech (GRRF): Finished the week down 15%.
- China Sunergy (CSUN): Finished the week down 19%.
- Ensco (ESV): Finished the week down 3%.
- Anadarko (APC): Finished the week down 2%.
- Goldman Sachs (GS - Get Report): Finished the week down 7%.
- Tesoro (TSO): Finished the week down 5%.
- Eagle Bulk Shipping (EGLE): Finished the week down 8%.
- Ram Energy Resources (RAME): Finished the week up 29%.