Here are few stocks I’m watching right now:

HERO - Is off its Summer highs of $39.47 and currently trading under $9. Dragged down by the whole market this one could see a nice rebound. HERO has reported that their Q3 earnings will be hurt be recent hurricanes and the stock held up.

DRYS - They are a bulk shipper that keeps the economy going. Even with a slow down in the ecomony DRYS is off significantly from it’s high of $131. The company plans to spin off a water business that could be worth more than the current stock price. DryShips owns 49 ships, and I think this one is one to get into at these levels.

ELRA - A Doubling Stock pick this one could go alittle higher if the volume is there.

The Dow had a historic one day gain of 936 points and my account also had a historic one day gain of $83k. Don’t let this number impress you, the gains were made by long term mutual funds I’ve been holding.

The funds are still way off from their highs and it will probably take 1-3 years before they retest their highs. Let this be a lesson to everyone who thought that mutual funds were safe and that tucking money away into a 401k was a safe way to retirement.

Millions of Americans have seen their retirements wiped out in the last few weeks. So what is a safe way to save for retirement? If you do have a 401k through your company, investment a minimum amount. Take some money out of your salary and invest it yourself. No one will ever watch your money better than yourself.

If you don’t know how to invest this money, get a book, search online, there is always a way if there’s a will.

Statistics show that the markets rally 30% within 40 days after a bear market. Considering we just had the worst and fastest drop in history I expect a decent rebound is going to happen.

If you had picked up any of my picks in the last posting, you’d be up nicely right now.

Like I have said before, build your positions slowly and the bulk of the money will be made within the next 6 -18 months or 15-30 points higher on all of my alerts which ever comes first.

I added to some of my current positions which includes ANR, BTU, CF, CLF, DRYS, EXM, HERO, MEE, ICE.

How do I know the bottom has hit or is near? When people tell me they have stopped looking at their account statements. When people hate the markets the most is when smart money starts building positions.

No one can guess the exact bottom, so my suggestion is to build a position slowly.

I believe the bulk of the money to be made in this market will not be short term, but 6-12 months out in companies that have been beaten down by this market.

If you’ve been thinking about putting money to work start looking to your favorite companies that you’ve always wanted to buy. As long as they are not down because of financial problems or banking related I believe they are most likely on sale.

I’m buying energy related companies trading at or near 52 week lows. My positions include MEE, ANR, CF, EXM, UNG.

CCTC went public through a reverse merger in Oct 07 and since then has gone through numerous stock splits. The company doesn’t release any press through the wires but posts them through their website.

Most of their Press Releases are memorandum signings which doesn’t mean much. I would play the upside on CCTC when the volume builds but when it breaks $10, look for the shorters to come in. There is no way CCTC can hold the price it’s trading at with the position the company is in.

Like I said in yesterday’s post, you must step in while the market is down and those that did today did nicely.

While there will still be rocks in the road moving foward, there are many opportunities for the bargain shopper. While looking for stocks with the biggest profit potential, I look for companies that have come down the fastest and are way off their highes.

You also want to make sure these companies came down with the market and not because of faulty financials.

The following are stocks I feel could come roaring back:

ICE
ANR
BTU
EXM
RIMM

SQNM made a new 52wk high today, and is up about 10 points since my intial alert! If you didn’t read my more recent article on SQNM make sure you do.

The recent surge in price is due to their recent test results. The company reported Downs syndrome screening test was effective in 200 cases, with no false positives or false negatives. I expect SQNM to go much higher.

While most people would probably steer clear from potentially bankrupt companies right now. AIG was a perfect trade for the short term investor. After the news of the bail out and the stock failed to go lower it was a no brainer. I’ve been trading AIG up and down and sold most of my shares today near $5.

I am looking to get back into AIG on any weakness.

The markets have taken a beating this week and the following stocks have come down to an attractive level. The market turned around end of day and many hammer candlesticks have formed.

RIMM, V, FSLR, DRYS, EXM, BTU, AGN, CF

CF has come down the same length it has the past 3 times and today’s reversal could lead to a short term gains.

BTU has also formed a nice hammer candlestick.

RIMM has come down to test support levels it made back in July, and looks very attractive here.