This Week's Rocket Stocks Portfolio Update

One additional pick.
Author:
Publish date:

Each week at Stockpickr, we look for short-term catalysts and snapback plays that could move specific stocks higher in the coming week, no matter what the market does.

I present these picks each Monday morning in a "Rocket Stocks for the Week"

column

at

TheStreet.com

and

portfolio

at Stockpickr.com.

On Tuesday, the minutes of the Sept. 18 FOMC meeting appear to support the idea that the

Federal Reserve

remains poised to cut interest rates again. This fueled a nice rally, sending most of our Rocket Stock picks much higher.

These picks are for the short term, meaning investors who buy these stocks based on these catalysts should hold them for no longer than a day or two (or until the catalyst has triggered). Unfortunately, selling stocks and locking in gains is one of the toughest things for investors to do; that is why I started writing this weekly update.

I would sell out of

Yum! Brands

(YUM) - Get Report

; which I highlighted Monday morning as an earnings play. Estimates proved to be too low, as investors seemed to forget about the company's global growth story. Those who bought on my recommendation Monday are up about 10% in two days.

I would also sell

Akamai

(AKAM) - Get Report

, which I highlighted on Monday as a snapback trade. Shares are up 13% in two days, so it's time to lock in those gains.

I would also sell

China GrenTech

(GRRF)

, which I also highlighted Monday as the next Chinese stock likely to rally. Shares climbed more than 20% by Tuesday and are now up 11%. The stock still trades at five times cash flows.

This week's update also includes one additional stock. Let's take a look:

VMware

(VMW) - Get Report

easily broke through $100 a share Tuesday on heavy volume. Investors are betting this technology is the wave of the future, and that VMW can handily profit from such an industry expansion.

While

EMC

(MC) - Get Report

is still insanely cheap (compared to its position as VMW's parent company), VMW is the "trader's" stock that has momentum right now.

In case you missed this week's Rocket Stocks, check out the

Rocket Stocks for the Week of Oct. 8-12

at Stockpickr.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.

TheStreet.com has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from TheStreet.com.