Maybe it was all too famously premature back at the turn of the millennium. Perhaps investors were giddy with the calendar as much as the emerging technologies that promised so much. The Internet bubble lives in ignominy, but six years later that promise if coming to steady fruition. Soon enough a world of content will be coming through the pipes and consumers are hungry for the culture and interaction being served up on the Internet. Disney's (NYSE:DS) announcement about Internet content delivery is part of a major shift in the way consumers will access their favourite programs. To borrow from the anthem of Prince, Internet stocks are "going to party like its 1999" all over again.
Evidence of the heated trading activity is found in the Internet Infrastructure HOLDRS (AMEX:IIH). Over the past month IIH has advanced aggressively on high volume. It ranks highly with a Stock Trends RSI of 121, and has made 52-week highs in each of the last four weeks. Last week IIH traded over 1500 times - far more than its usual level and twice as much as the previous week. Investors want a piece of the action and IIH is attracting those that want to play the industry. IIH was a Stock Trends Bullish Crossover at the end of December when it traded at $3.86. The issue trades at the $5 level now.