Stockpickr) -- With another month of trading under Mr. Market's belt in 2012, it's clear that stocks took a bit of a breather in March: the
S&P 500 climbed just 3.13% last month, performance that pales in comparison versus January and February's contribution to the rally.
So what's in store for April?
Even though stocks slowed their climb in March, equities are still in rally mode right now. The S&P remains above the 1400 level after kicking off its best quarter in a decade or two, and other indices are posting similar stats. From a seasonality standpoint, April tends to be a bullish month for stocks. While that's no guarantee that we'll see the rally accelerate again this month, it's a good sign.
>>5 Stocks Setting Up to Break Out
This month, I'm expecting one of the primary catalysts for stocks to be
flow of funds
from the safety assets of 2011 (namely bonds) to the stock market. A rising tide should help lift all ships in that scenario.
To take full advantage, we're turning to a new set of Rocket Stocks this week.
For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows.
In the last 146 weeks, our weekly list of five plays has outperformed the S&P 500 by 78.39%.
With that, here's a look at
this week's Rocket Stocks