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.
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