When Internet stocks were languishing back in August, few were predicting that the highs from last April would be challenged anytime soon, and much of the talk was that the bubble had finally burst. Well, start chewing that Bazooka Joe, because the bubble is getting even bigger.
TheStreet.com Internet Sector
index closed up 18.06, or 2.3%, at 814.87, the second straight session it has closed at an all-time high. Its intraday high of 821.75 was just off the all-time high of 824.20 reached April 13. Friendly economic
data that could make for a less-aggressive
fueled the latest rally.
Dick Dickson, technical analyst with
Scott & Stringfellow
, said there are no indications that the gains are going to stop. He said that the next level he is looking at in the DOT is 850. He added that -- though he said he wasn't particularly comfortable saying it -- his projections indicate it could climb to the 960 level.
Note that back in October when Net stocks were reeling, Dickson said he expected losses to
persist. He admitted that he was "taken by surprise" by the turnaround, in part because the technicals did not suggest the clean signals to show the market was oversold. Dickson claimed he is generally accurate around two-thirds of the time and this happened to be one of the times he wasn't.
Though the sector was generally in the green, there were a few standouts.
was the hottest of the
Red Hots, closing up 46 1/16, or 21%, at 269 1/16 with no news to account for the move. And
Internet Capital Group
ended an amazing week up 15 1/2, or 10%, at 169 7/8. It gained more than 45% this week.
ended up 14 1/8, or 11.7%, at 135. The streaming-media company is expected to make a product announcement on Monday.
Internet IPOs also had a strong day.
(COBT:Nasdaq), which makes network appliances used for a variety of server tasks such as e-commerce and email, closed up 106 1/8, or 482%, at 128 1/8. Online grocer
(WBVN:Nasdaq) ended up 9 7/8, or 66%, at 24 7/8 in its first day of trading. And
(WFII:Nasdaq), which designs wireless networks, closed up an astounding 47, or 313%, at 62.
But profit-taking also was seen in some of the Red Hots, along with some other popular issues.
, which has been on an absolute tear over the past week, closed down 8 3/4, or 7.5%, at 108 after trading to an all-time high of 128. The stock has still doubled in price since trading at 59 1/4 on Oct. 21.