After playing the last two weeks relatively safe in terms of risk and capital exposure, I am willing to believe that the market will snap back to the tune of 3% to 5% this week in relatively short order.

Here is why I am bullish on the week:

1. A shortened trading week last week, coupled with options expiration and several important economic data points, increased volatility toward the downside.

2. Corporate bond trading in the U.S. is at a two-year high, signaling improved liquidity in the credit markets

3. Sentiment levels, as judged by the bull/bear index and Citigroup's proprietary panic/euphoria index, are showing panic levels in the broader equity markets.

4. The price of gold rose to almost $1,000 per ounce, a level last seen the week Bear Stearns was rescued by JPMorgan ( JPM) and the Federal Reserve.

With this in mind, I've developed this week's Rocket Stocks portfolio, which includes such snapback ideas as Foster Wheeler ( FWLT) and KBR ( KBR - Get Report).

To read more, visit Stockpickr.com.

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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