This Week's Rocket Stocks Update

What to make of Eaton now, plus two new stocks for the list.
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At the start of each week, I

write a column

featuring the

Rocket Stocks for the Week

, a list of stocks that I believe have the potential to surge higher in the coming days.

I select these Rocket Stocks not necessarily because they are great stocks to hold for the long term, but rather because they have the potential to either snap back because of an irrational selloff the week before or because they have some other potential catalyst that could create explosive price moves during the coming week.

For this week's

Rocket Stocks of the Week

portfolio, I focused on stocks that were set to report earnings.

One of the names on the list was

Eaton

(ETN) - Get Report

, which I selected because of its scheduled earnings release on Monday. As predicted, Eaton had a better-than-expected quarter as a large portion of its revenue came from overseas expansion in the electrical sector.

Shares of Eaton have since climbed 4.5%, and so I recommend profits should be locked in. Eaton is a great company with solid fundamentals, but as a Rocket Stock pick, it was meant to be a trade on the earnings -- and we got that. Never turn a trade into an investment.

Eaton is also in our

80-to-120 portfolio

, a list of stocks around $80 that Jim Cramer believes are likely to go to $100 and then to $120 in a bull market.

This week's Rocket Stocks list also includes

Local.com

(LOCM)

, which is up a few percent from last week, and

CSX

(CSX) - Get Report

, which just reported a per-share earnings beat after Tuesday's close and is now trading higher.

I've also added two more stocks to this week's Rocket Stocks portfolio.

Answers

(ANSW)

and

Medtox Scientific

(MTOX)

are suggested plays between now and Friday. For my thoughts on these two stocks and what I believe to be their near-term catalysts, check out the updated

Rocket Stocks of the Week

portfolio. And be sure to check in on Monday for the next set of Rocket Stocks.

As a side note, in a

video from TheStreet.com TV today

, Jim Cramer and I discuss the

Dendreon

(DNDN)

phenomenon and how to deal with the inevitable hate mail that pours in no matter what side of the Dendreon equation you find yourself on.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Answers, Local.com and Medtox Scientific to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

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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