Updated from 9:05 a.m. EST

The sharpest rallies always come out of the most brutal bear markets, and this week's enormous move higher was no exception.

Rumors surrounding a potential good-bank/bad-bank announcement, the potential passing of a stimulus package, and possible comments from Treasury Secretary Tim Geithner on Monday night all sparked a 5% move higher in the

S&P 500

this week.

However, coming into this week, it is my belief that traders will sell into this news, fully living out the mantra of "buy the rumor, sell the news" action.

That is why I've set up an extremely defensive

Rocket Stocks portfolio

for this week (including

Patriot Coal

( PCX)).

To read more,

visit Stockpickr.com


In Monday trading, shares of Patriot Coal closed at $5.77 (up 11.6% for the day).

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At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of


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Financial Times

and the author of

Trade Like a Hedge Fund


Trade Like Warren Buffett



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

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