Updated from 7 a.m. EDT

These are historic times, so let's get down to business. Here is this week's Rocket Stocks portfolio, which includes such stocks as Arch Coal ( ACI) and Valero ( VLO).

There are several reasons to be bullish in this environment. Stock prices have now dropped to 2002 levels. The only difference here is that corporate earnings and profits on the S&P 500 are about 50% higher since that time.

Short interest in the NYSE has reached historical leaves, at almost 7%.  This represents about 18 billion shares sold short.  With the market having gone down in a straight line this past year, the easy money on the short side of the market has already been made.  Whenever a trade gets so one-sided, as it has with the short positions in the market, even the slightest bit of positive news could move the market substantially higher.

Hedge funds are reporting their lowest net-long positions since 2002. Things like this near market bottoms, not tops. Over the last two weeks, leveraged CEOs are being forced to sell their equity. This happens at market bottoms, not tops.

Are things bad in our economy? Of course, but if you wait for Mr. Market to ring a bell for you at the bottom, you are likely to miss a substantial move higher.

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At the time of publication, Altucher and/or his fund was long CLF, 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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