BALTIMORE ( Stockpickr) -- Last week's price action in the broad market was a gut-punch for anyone who owns stocks. Thursday alone was the biggest one-day drop in the S&P 500 since all the way back in November 2011.
And Wednesday's reaction to the Fed's latest public statement was the worst since Sept. 21, 2011, when the market dropped 2.94%. Those aren't exactly the kinds of records that investors have been hoping for this summer.
From a technical standpoint, Wedesday's drop was meaningless -- but Thursday's selloff was a very big deal. The selling shoved the S&P's price down below the price channel that it's been trading within since November. In short, that means that stocks are likely to correct for a little while at best.>>5 Stocks the Pros Love This Summer To cope with the correction, we're turning to a new set of best-in-breed Rocket Stock names 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 205 weeks, our weekly list of five plays has outperformed the S&P 500 by 79.35%. Without further ado, here's a look at this week's Rocket Stocks. >>Why the Fed's "Taper Tantrum" Doesn't Matter