This is a golden time to load up on stocks

• Buy 600 shares of Transcend Services (TRCR, news, msgs) at $16.01 or less.

I've been sitting on 70% cash in the first two weeks of this round of Strategy Lab, just waiting for a return of investor fear to begin more aggressively adding to my bullish exposure. With interest rates still low, I like the odds for the stock market to bounce back relatively quickly from this past week's carnage, or at least start the bottoming process and not go too much lower.

The weekly VIX indicator

Ever since September 2003 (when this bull market really kicked off), every time the CBOE Volatility Index ($VIX.X) gets over the 20 mark on a weekly basis, it's been a golden opportunity to buy stocks. The VIX closed this past Friday at 24.17, up sharply from the prior week's close of 16.95.

The VIX is basically a measure of how much fear exists in the options market, as the higher the VIX goes, the more expensive options on the S&P 500 Index ($INX) are. Those options offer investors portfolio protection. And usually, by the time most players are clamoring for put protection, the bottom is nearly in place. Some bottoms from past extremes over the 20 level on the VIX occur quickly; after the late-February plunge, the market saw just two weeks of basing, and then we were off to the rally races. Prior to that, the May-June 2005 bottom took a couple of months to form, and it's entirely possible that this bottom could take some time. But I believe starting to acquire quality stocks here should be a good strategy in the next couple of weeks.

I like Transcend Services (TRCR, news, msgs) as a high-growth stock that's been bashed in the past week, but this stock should hold this past week's lows and bounce back strongly as the markets recover. The company provides transcription services (from voice to text) for the medical industry. Last Thursday, July 26, the company said second-quarter earnings more than quadrupled, as net income came in at $1.4 million, or 16 cents per share, compared with income of $225,000, or 3 cents per share, for the year-ago period. Quarterly revenue increased 32% to $10.5 million from $8 million in the prior year's same quarter.

It's been my experience with my indicators that you have to be willing to step up and buy highflying growth stocks on these short-term market panics. The big growth winners will often get hit harder on the sell-offs, but they will also rebound faster as the market recovers.

I'm seeking to buy TRCR shares down at $16.01 on a bit of a dip, as the market could remain volatile at times next week, but this should offer an excellent chance for a potential near doubler during the contest. I believe the stock can move back into the $25-$30 range before the year is out on the heels of this very strong earnings momentum.

I'll have more new buys in the coming week, so stay tuned, as the coming days should be very interesting for the market here.