Last week was rough, actually very rough, as increased credit worries and hawkish statements from Federal Reserve Chairmen Ben Bernanke rocked the market. With daily three-digit swings in the market, it is certainly tough for institutional traders to make money, let alone the retail investor.

Such a market environment is precisely why I compile and write this Rocket Stocks column. The sole purpose of this weekly piece is to offer readers like you ideas for stocks that have the potential to rally in the coming week, no matter how the market does.

I like to look at stocks that have real catalysts ahead of them that might propel them higher. Whether it's an earnings, arbitration or a pure snapback play, hedge funds (and all of us actually) are always looking for these stocks because the risk vs. reward is so tempting.

Before we look at This Week's Rocket Stocks portfolio, however, let's review last week's market action.

For a little perspective on last week's selloff, let's look at U.S. household net worth: U.S. households have a net worth of $55 trillion. With all of the recent dire headlines, you might think that entire number was going to collapse overnight.

But right now, Bernanke sees that $150 billion of at-risk mortgage debt is in question. This $150 billion is only 0.2% of the U.S. net worth. For argument's sake, let's take that $150 billion and triple it (3 times the amount Bernanke sees), to $450 billion. This still is only 0.6% of the U.S.'s net worth. You see where I'm going?

Here's a quick take on how last week's Rocket Stocks fared:
  • Cisco (CSCO): In my midweek Rocket Stocks update, I recommend selling Cisco to lock in a 4% gain ahead of earnings. That proved wise, as the stock finished the week down 11.8%.
  • Nividia (NVDA) was another recommended midweek sell, to lock in a 3% gain ahead of earnings. It finished the week down 7%.
  • Tesoro (TSO): Another recommended midweek sell for a 4% gain after Valero (VLO) delivered upbeat guidance that boosted the refiners. Tesoro finished the week down 2.6%.
  • Ralph Lauren (RL), another recommended midweek sell for a 4% gain, this earnings play ended the week up 1.3%.
  • UltraShort Oil and Gas ProShares (DUG): This stock, a midweek addition, rose about 2%. I still like the stock here.
  • Annaly Capital Management (NLY): Up as much as 6% and ending the week up about 2%. These guys are best positioned to pick up the subprime bonds on the cheap.
  • Nymex (NMX): Up as much as 4% but ending the week down 2.5%. Nymex generally makes money no matter how oil trades.
  • Citigroup (C): This proved a horrible pick for the week, down about 14%.
  • Dynegy (DYN): This stock was up as much as 4% but ended the week down 6.7%.
  • The Knot (KNOT): Another horrible pick, ended the week down 16.8%.
  • China Precision Steel (CPSL): Took a terrible plunge of nearly 22%.

Now let's take a look at the potential Rocket Stocks for this week.

This week's first pick is NYSE Euronext ( NYX). Shares of this exchange held up amazingly well last week, despite the massive selloff the market endured. There's been a lot of discussion both in Jim Cramer's RealMoney blog and on Answers about the recent slump, but let's take a step back and look at the basic fundamentals and see perhaps why this stock acted so strong last week.

First, NYX was recently added to the S&P 500, which forces mutual funds to buy up shares. Yet, with $1 billion in cash and a solid quarterly earnings beat, NYX is still very cheap.

With EBITDA of more than $1 billion that is expected to see a double-digit rise over the next year, its enterprise-value-over-EBITDA multiple of just 11 puts it in potential buyout territory. Now I don't believe NYSE will get acquired, but if at any point it can't find accretive acquisitions, it would make sense for it to use cash to buy back shares at these levels, particularly since it can leverage up at 6% and buy back shares with an earnings yield of almost 10%. Every hedge fund and buyout fund, incidentally, looks at those types of numbers as well.

Recent earnings were fantastic, and with Atticus Capital seemingly increasing its holdings whenever it can, NYX looks like a candidate for a continued move higher.

Next up is Lam Research ( LRCX), a stock that is clearly oversold. The semiconductor-equipment maker is one of the few technology stocks that trades higher now than it did in 2000.

Trading at just 7 times cash flows, Lam is a natural buyout target. The stock triggered on my screen after it held up and stayed positive while the Nasdaq as a whole was getting killed recently.

Also worth looking at is aircraft leasing company Genesis Lease ( GLS). Most of its planes are leased to airlines overseas. This means that its dividend is covered by solid cash flows from international currency. With the average age of its planes lasting 5.6 years, most of them are locked up into longer-term contracts.

I highlighted Garmin ( GRMN) a few weeks ago, but let's take another look at why shares of this GPS-device maker could move up in the short term. Garmin has a price-to-earnings (P/E) ratio of 25, a P/E-to-growth (PEG) ratio of 1.2 and even pays a small yield of 0.8%. The company recently reported a surge in quarterly earnings and revenue. For growth investors, Garmin is still very cheap and with the holidays coming and everyone wanting a GPS in their cars, things could get better.

This week I also take a look at EMC ( EMC) and the weird options activity in Boston Scientific ( BSX).

As always, you can view the analyses behind these and the rest of the week's picks in the Rocket Stocks for the Week of Nov. 12-16 portfolio at

To find the snapbacks and potential breakouts on a regular basis, check out these Stockpickr portfolios, which I use in my own research each week:
  • Today's Hot List: This daily list is a must-view every midday to see what stocks are making the biggest moves and why.
  • Always check the Biggest Percentage Losers, a list of stocks that lost big the day before, because they can snap back hard.

    When you check this list on Stockpickr, you can see which stocks are owned by the quality hedge funds and mutual funds. Pay attention to those. They will be buying at the lower prices, so you should be also.
  • Ditto for the 52-week-low list. You must check the above two lists every day if you hope to find volatile stocks.
  • Biotech Short Squeezes: Dendreon (DNDN) and others can often be found in this category.
  • Stocks Rising on Unusual Volume: These are potential breakout stocks.
  • Stockpickr's System Trades of the Day: These are trades triggering that day in various backtested trading systems we've developed.
  • Stocks With Unusual Option Activity: Perhaps someone knows something?
  • Latest Activist Situations: These are beaten-down stocks that hedge funds are accumulating shares of and demanding change in. Believe me, these hedge funds piggyback each other. And once they start rocking the boat, things happen quickly. This should be on your must-view list.

One final place to frequent is the Answers section on Stockpickr, where ideas such as those presented in this article are thrown around daily.
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 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. 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