After playing the last two weeks relatively safe in terms of risk and capital exposure, I am willing to believe that the market will snap back to the tune of 3% to 5% this week in relatively short order.

Here is why I am bullish on the week:

1. A shortened trading week last week, coupled with options expiration and several important economic data points, increased volatility toward the downside.

2. Corporate bond trading in the U.S. is at a two-year high, signaling improved liquidity in the credit markets

3. Sentiment levels, as judged by the bull/bear index and Citigroup's proprietary panic/euphoria index, are showing panic levels in the broader equity markets.

4. The price of gold rose to almost $1,000 per ounce, a level last seen the week

Bear Stearns

was rescued by


(JPM) - Get Report

and the

Federal Reserve


With this in mind, I've developed this week's

Rocket Stocks portfolio

, which includes such snapback ideas as

Foster Wheeler



TheStreet Recommends

(KBR) - Get Report


To read more,



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


LLC, a wholly owned subsidiary of 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



. 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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