Editor's note: Every morning, James Altucher presents the most timely, topical posts from the Web's best business blogs.

In my first book I wrote about the "5% Gap" -- a trading system for when stocks gap down more than 5%. With the lack of volatility in the markets there were very few occurrences in the past year, so I examined what I call " The Mega Gap" -- a trading system that adjusts based on volatility.


10Q Detective also has some thoughts on the $1 CEO phenomenon, particularly as regards Yahoo! ( YHOO)and Apple ( AAPL).


The top 20 performing Chinese stocks in 2006 that trade in the U.S.


Hilary Kramer believes the pump is primed at BJ Services ( BJS).


JoeCit is nervous that Pre-Paid Legal Services ( PPD)is a value trap.


Super hedge fund SAC Capita, run by Stevie Cohen, announced 5% positions in 2 new companies over the past week.


Modern Graham revisits his list of deep-value defensive stocks.


Financial Nirvana looks at the public companies that benefit from pollution in China.


Seeking Alpha presents the short case on The Gap ( GPS).


Blogging Stocks places the odds on a merger between XM Satellite Radio ( XMSR)and Sirius ( SIRI).


Stockerblog -- where do they get this stuff? -- finds out which bank just paid a $100-a-share dividend on top of their usual dividend of $75 a share.


Nice post by GigaOm on how AOL has been selling itself off, piece by piece.


Pink Sheets revisits Big Apple Bagels.


In 2002, if you bought every month all the stocks trading below $3 on the NYSE and held them for one month, you would've had a return of more than 200%. Please check out my article on low-priced profitable stocks trading on the NYSE.


At the time of publication, Altucher and/or his fund had no positions in any of the stocks mentioned, although positions may change at any time.

James Altucher is a managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds. He is also the author of Trade Like a Hedge Fund and 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; click here to send him an email.

Interested in more writings from James Altucher? Check out his newsletter, TheStreet.com Internet Review. For more information, click here.

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.

If you liked this article you might like

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup