Top Rocket Stocks for the Week

Updated from 6:59 a.m. EDT

When a bottom in equities is formed, no one comes out and rings a bell signaling the "all clear" sign to start buying again. In fact, it's the total opposite. Bottoms are formed when there is pure panic in the air and when investors are puking up all of their stocks at the bottom. We saw this with banks such as National City(NCC Quote) and Fifth Third Bancorp(FITB Quote) as well as with Freddie Mac(FRE Quote) and Fannie Mae(FNM Quote) a few weeks ago.

In the System Trades of the Day section of Stockpickr.com, one of the systems we have is called the Panic 101 system. Basically, the theory is to buy any stock that is 10% lower than the prior day's close and to sell it at the end of the day. Backtesting shows this system to be 60% profitable, with an average profit per trade of 1.4%.

This week's Rocket Stocks portfolio includes some ideas for panic and earnings trading, which offer compelling risk-reward scenarios for investors. The portfolio includes such stocks as U.S. Steel (X Quote), Gulfmark Offshore(GLF Quote), NYSE EuronextU.S. Steel (NYX Quote) and Gardner Denver(GDI Quote).

To read the rest of the story, and to find out which stocks could rocket higher this week, please click here.

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A note from James Altucher:

Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap.

Here are some examples:

• Stocks related to drilling the Marcellus Shale

• MLPS with yields above 7%

• Microcaps trading for less than tangible book

• Stocks that do well after Hurricanes

Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other hedge fund managers on my list.