Finally! The inevitable rally, which I have been writing about for awhile, was granted to us by some divine power from above.

OK, not really. Oil tanking, huge upside earnings from JP Morgan (JPM) and Wells Fargo (WFC) and a massive short-squeeze were the real catalysts last week.

Let me remind you that when things in the market look the darkest, with fear and gloom gripping all, that is the exact time you want to be buying equities. From its Tuesday low of 1201, the S&P 500 ramped to close on Thursday at 1260. Heck, on Wednesday, the Financial Select Sector SPDR (XLF) only was up 13% in a single day, representing an 11 standard deviation event.

I highly doubt we'll see another 11 standard deviation movement in the XLF this week. But this week’s Rocket Stocks portfolio certainly does offer up some compelling names.

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 (CSX) last week saw profit up 19% based mostly on demand for coal and grain. Canadian National Railway 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, The Children's Investment Fund consistently referred to Canadian National Railway 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 is 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 U.S.-based steel companies, AK could be a big beneficiary.

For all the other ideas, including Apple (AAPL), Merck (MRK) and Sandisk (SNDK), check out this week's Rocket Stocks at Stockpickr.com.

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:

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. The funds will be buying at the lower prices and likely supporting the stock.

Ditto for the 52-week-low list. You must check the above two lists every day if you hope to find volatile stocks that can snap back.

Biotech Short Squeezes: Dendreon and others can often be found in this category.Stocks Rising on Unusual Volume: These are potential breakout plays.

Stockpickr's System Trades of the Day: These are trades triggering that day in various back-tested trading systems we've developed.

Stocks With Unusual Options Activity: Perhaps someone knows something?

Latest Activist Situations: These are 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 the 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. And you can further discuss your ideas and share opinions in Stockpickr's Member Forums section.

A note from James Altucher:

Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap.

Here are some examples:

Stocks related to drilling the Marcellus Shale

MLPS with yields above 7%

Microcaps trading for less than tangible book

Stocks that do well after Hurricanes

Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other
hedge fund managers on my list.