Rocket Stocks for the Week

These stocks have the potential to move higher in the coming days.
Author:
Publish date:

Updated from 7 a.m. EDT

The ancient Chinese proverb and curse "May you live in interesting times" came into full effect last week, when the market crashed on Monday by 777 points in a single day.

If you look back at the

Dow Jones Industrial Average

since 1895, you will find only seven days when the Dow dropped 7% or more and made a new low. Five of those times were before 1940, when the

Federal Reserve

did not have much market-moving authority.

Additionally, the CBOE option volatility index, better known as the VIX, spiked to 48; the OEX volatility index, also known as the VXO, hit 51. These high implied volatility signs are classic signs of panic/capitulation.

I know it's painful to buy stocks at a time like this, even for a quick trade. But over the past 50 to 60 years, if you'd bought stocks when the VIX or VXO spiked into the high 40s or low 50s, you'd have been profitable one month, three months, six months and 12 months out.

And take your pick. Last week, you could have loaded up on techs such as

Microsoft

(MSFT) - Get Report

,

Oracle

(ORCL) - Get Report

,

Juniper Networks

(JNPR) - Get Report

or financials such as

Wells Fargo

(WFC) - Get Report

,

Bank of America

(BAC) - Get Report

or

Goldman Sachs

(GS) - Get Report

.

There are tons of interesting opportunities this week, too, in my

Rocket Stocks portfolio

, including

Robbins & Myers

(RBN)

and

Yum! Brands

(YUM) - Get Report

.

To check them out,

visit Stockpickr.com

.

At the time of publication, Altucher and/or his fund was long Juniper Networks and Bank of America, although positions may change at any time.

James Altucher is president of

Stockpickr

LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the

Financial Times

and the author of

Trade Like a Hedge Fund

,

Trade Like Warren Buffett

and

SuperCa$h

. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;

click here

to send him an email.

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