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This Week's Rocket Stocks Portfolio Update

Two additional picks for the list.

Overall market volume and volatility remain high as anticipation of a Federal Reserve interest rate cut looms over the market. The question is: Which stocks stand to profit?

Each week at Stockpickr we look for the short-term catalysts and snapback plays that could move a stock in the coming days. Each Monday, I present these ideas in a "Rocket Stocks" column. Let's check in and update this week's

Top Rocket Stocks for the Week of Sept. 10

.

I'd lock in profits on

Finisar

(FNSR) - Get Report

, which was up as much as 6.4% yesterday from Monday's open. I still like the stock long term as both an earnings play and tech play, but such a profit in two days needs to be locked in.

This week's update also includes a few new stocks. Let's take a look at these new picks.

First up is

Meritage Homes

(MTH) - Get Report

, perhaps the best publicly traded homebuilder to buy. Management has weathered the housing slump and consistently written down assets. Near its 52-week low of $15.51 and with a massive short-position, Meritage stock offers a possible snapback play. In general,

short-sellers tend to crowd a hated sector, and with 43% of the float sold short, I like the risk/reward. In addition to that, a

Fed

cut should definitely help this company.

Also worth looking at is apparel retailer

American Eagle Outfitters

(AEO) - Get Report

. It is nearly impossible to call a bottom when you invest in stocks, but if you are an insider, you certainly have a good idea of when your stock is insanely cheap. AEO has seen insane insider buying within the last two weeks from its CEO and other directors.

Jim Cramer discusses the insider buying as a great tell as to where the stock is going to go in this video from TheStreet.com TV, "

American Eagle Is the Ultimate Retail Play

TST Recommends

." I also recorded a video, "

American Eagle and Mattel Are Great Buys

," in which I present a bullish case for this beaten-down stock.

Just in case you missed out on this week's rocket stocks, check out the

Rocket Stocks for the Week of Sept. 10

at Stockpickr.com.

Also, don't forget to look at next week's Rocket Stocks, which appears every Monday at 7 a.m. at

TheStreet.com

.

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 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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