Each week I write a Rocket Stocks column and compile a Rocket Stocks portfolio in which I try to identify stocks that I believe are poised for a significant move higher in the coming week.
Despite a fairly choppy start to the week, the major indices are in rally mode. With a very tight trading range possible for the rest of the week and into next, I want to lock in some gains in, as the goal here is to buy weakness and to sell into strength.
This week I highlighted
, which on Wednesday climbed as much as 4.6% from when I wrote about it on Monday. The stock ended the session 1.8% up from where it started the week. I cited valuation and last week's technology conference in New York as potential catalysts. With
trading around $95 a share, EMC is still very cheap and a great long-term investment.
I also highlighted
Research In Motion
( RIMM) as a snapback play, which has turned out to be a costly decision. The stock is down 7.7% since I wrote about it. TD Newcrest upgraded RIMM to a buy rating, citing that the recent slide in shares offered a reason to buy.
This week's update also adds two new stocks, which could move higher not only this week but until the end of the holiday session.
as a play on holiday spending, and it sells almost anything you can think of. While last quarter's operating margins were an issue, Amazon seems like a good stock to trade till the holidays.
I also like
American Eagle Outfitters
, which despite the massive rally in retailers has hardly moved. American Eagle is one the best-positioned teen retailers out there, and with large insider buying, it seems attractive.
In a final note: Back in September I wrote an article on
potential Chinese stocks that could rally
; currently we are seeing a massive rally in the Chinese solar stocks, especially
( SOLF) and
. At these levels I prefer China Sunergy over Solarfun. China Sunergy trades at just 12 times next-year's earnings.
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
. 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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