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This Week's Rocket Stocks Portfolio Update

Here's how this week's picks are faring thus far.

Each week I write a Rocket Stocks column in which I try to identify stocks that could move much higher in the coming week no matter how the market does. This week I highlighted stocks that were set to report earnings, and boy has that paid off.

I recommended

Apple

(AAPL) - Get Report

as an earnings play. That stock is now up roughly 10% in two days. I would take profits. Even though Mac sales were great, this was a trade, so let's move on.

I also recommended

Amazon

(AMZN) - Get Report

, which is set to report after the close today. This stock is already up 8% ahead of the report and with a massive short position. For that reason, I would sell

half

of my position. While I still believe that the online retailer will beat earnings handily, the risk vs. reward just is not there with the stock up 8%.

I also recommended

Level 3

(LVLT)

, which was a horrible call that I should not have made. The stock is down about $1, or more than 20%, since Monday's earnings report, and there may be more pain ahead for investors.

This weekly update also includes a new pick,

Rackable Systems

TheStreet Recommends

(RACK)

, which reports earnings on Thursday and has seen heavy call volume trading, particularly in the November $15 calls. This action triggered on our Stockpickr options screen. Clearly, investors are making a very risky but potentially very profitable trade on RACK as they think earnings are going to be great.

Just in case you missed this week's portfolio, check out the

Rocket Stocks for the Week of Oct. 22-26

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.

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