Canadian National Railway (CNI): Canadian National Railway, viewed by many as the world's leading railway is set to report earnings this week and I expect a huge upside surprise. As an industry tell, CSX Corp (CSX) last week saw profit up 19% based mostly on demand for coal and grain. CNI has gross margins north of 48%, which is the highest in the group, with an industry average of 30.09%. Operating margins are 35.84%, which is also the highest in group, with an industry average of 14.06%. During its proxy fight with CSX Corp (CSX) The-Childrens-Investment-Fund The Children's Investment Fund, consistently referred to Canadian National Railway (CNI) as the best railroad in the world Plus, Bill Gates investment fund Cascade-Investments Cascade Investments, is one of the largest shareholders in Canadian National.

AK Steel (AKS): AK Steel, which reports earnings this week is also setting up well. For starters, the whole steel sector has been hit hard, after Nucor (NUE) reported in-line earnings, but guided its 2008 outlook down. Shares of U.S Steel (X) are off $50 from its high and AK Steel (AKS) are down about $30 from its peak. With China still consuming 50% of the world's steel and Russian mega steel company Severstal interested in "investing" $30 billion dollars worth of assets in US based steel companies

AAPL is set to report earnings this week, and with the successful launch of the 3G Iphone who doesn't think they will beat earnings. Last weeks nice pullback into the $165 area sets it up well for an earnings beat

Improving gross margins for flash memory makes SNDK a good buy ahead of the quarter

Coal stocks have been totally killed, and rightfully so---most of them are extremely expensive and are totally linked to international demand. However, the coal mining stocks are being unfairly punished and are less of a tie to the commodity than the market things. Buy BUCY for a snapback play

Down $20 from its high, Jim Cramer is a huge supporter of COG

Merck has earnings this week and is setup for a nice snapback play. 4% Divy yield coupled with the rotation into drug-stocks makes MRK a good buy ahead of the quarter

Snapback play. The Q was not worth a 10% drop in shares of GOOG. GOOG missed by only a few cents