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Internet investors were picking and choosing stocks to buy or sell after all of the recent volatility, though bulls appeared to be gaining the upper hand.

TheStreet.com Internet Sector

index was up 27.65, or 2.9%, at 998.45 in recent trading.

TheStreet.com New Tech 30 had erased earlier losses and was up 18.41, or 2.9%, at 655.02. The

Nasdaq

was up 84.27, or 2.0%, at 4233.16.

Traditional Internet plays appeared focused on

Yahoo!

(YHOO)

ahead of its earnings report after the close today. It was off 1 7/16, or 0.9%, at 165 15/16.

Amazon.com

(AMZN) - Get Amazon.com, Inc. Report

was down 1 1/4, or 2.0%, at 62 11/16;

priceline.com

(PCLN)

was off 2 11/16, or 3.6%, at 72 9/16; and

TheStreet Recommends

eBay

(EBAY) - Get eBay Inc. Report

was down 9/16, or 0.3%, at 166 7/16.

America Online

(AOL)

was bucking the trend, up 1 5/16, or 2.1%, at 64 3/16.

Business-to-business plays, which have been among the gravest casualties of late, were mixed.

Vignette

(VIGN)

was up 19 7/8, or 13%, at 173 1/8, while

FreeMarkets

(FMKT)

, which gained 31% yesterday, was down 8 11/16, or 6.8%, at 120.

i2 Technologies

(ITWO)

was up 14 3/16, or 15%, at 108 5/8, while

724 Solutions

(SVNX)

was up 8 15/64, or 11%, at 86 15/64.

Back-and-forth trading is expected to persist as the market attempts to regain its legs. Traders spooked by the recent events were taking advantage of the recovery to bail out, while others were capitalizing on the weakness to get into some stocks that have become relatively cheap from where they were trading about a week ago. There's not much else to add, so we thought we'd print a letter from an alert and smart reader who commented on today's

Wall Street Journal

Heard on the Street

piece regarding Internet analysts. Thanks, James.

Unfortunately, while we've had a lot of focus of late (too late?) on borrowing on margin, not enough has been said on this issue. Much of the speculation/mania in the market has been whipped up by analysts continuing upping target estimates of stocks in the Internet, wireless, broadband and other hot sectors. Much of this appeared more a result of trying to keep ahead of rising share prices than fundamental analysis. Of course, the mania fed on itself, since speculative players only jumped on the good news to push values higher. We knew it was a mania when a new 12-month target price was reached within a week, if not sooner. Ironically, of course, we're now faced with a similar problem where selling only leads to more selling in a vicious cycle downward. There is plenty of blame to go around for the current market debacle, but in the end it still comes down to the same old thing -- greed!